PowerPool, a project investigating the usefulness of Ethereum-based governance tokens, has introduced YETI—an database and “meta-governance” token for the Yearn.finance ecosystem.
YETI was developed by Ryan Watkins of Messari, who on December 4 released the proposal for a Yearn Finance ecosystem index token to the governance forums of PowerPool. The Messari researcher observed that “despite development and community resources being merged” among the members of the YFI ecosystem, “governance among these protocols remains separate.”
The Index was written that would provide “a passive vehicle for board exposure to the Yearn ecosystem,” thus allowing Yearn the chance to formalize its latest mergers and align “the treasuries and governance systems of the protocols in its ecosystem.”
As he suggested, 35 percent YFI, 17 percent SUSHI, and 8 percent CREAM, AKRO, COVER, KP3R, CVP, and PICKLE comprise the index. For effective proposals for governance, however the structure of the index may be modified.
The meta-governance layer of PowerPool index tokens enables YETI holders to engage in a single interface in governance around the Yearn ecosystem, which PowerPool said simplifies the user experience and gives an opportunity to save gas costs.”
YETI token holders may also become providers of liquidity for any tokens in the index and gain yields from tokens pooled in the yield producing vaults of the underlying protocol. They also obtain proceeds from token swaps taking place inside the YETI pool from a 0.2 percent swap fee. YETI actually trades on Uniswap and Balancer decentralized markets for approximately $1.10 each