What Is PowerPool (CVP)?
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What Is PowerPool (CVP)?

What Is PowerPool (CVP)?

Beginner
Frissítve May 30, 2024
7m

Key Takeaways

  • PowerPool is a dePIN network providing Transaction Signing as a Service tool for end-users, protocols, and AI agents.

  • Users can delegate executions of their on-chain actions, including rewards/points farming to PowerPool.

  • In the future, a lot of previously manual on-chain actions will be automated by tools such as PowerPool.

Introduction

Modern Web3 users and apps widely apply yield strategies, intent-based strategies, and AI-generated workflows, which require automatic execution.

Ethereum and other EVM blockchains do not offer any methods for automatic on-chain execution directly from the smart contract. Any transactions must be created, signed, and submitted to the mempool by an externally-owned address.

Today, with all modern inventions such as Account Abstraction, Modularity, Intents, and AI agents that assist users in defining their on-chain flows, there is an increasing demand for automatic execution of on-chain actions.

Such industry demand requires creating a physical infrastructure of Keeper nodes, connected to a blockchain RPC and signing transactions according to on-chain and off-chain conditions (through a dePIN network). 

PowerPool develops a robust dePIN infrastructure, acting as a Transaction Signing as a Service tool for end-users, protocols, and AI agents. It meets the demand for robust automation on various L1/L2 chains, preserving core Web3 values such as decentralization and permissionless.

What Is PowerPool?

PowerPool develops and operates a dePIN network of Keeper bots called PowerAgent. The main service provided by the network is automatic execution of transactions on-chain based on on-chain and off-chain triggers.

The automatic execution of transactions is Transaction Execution as a Service. Transaction sequences that should be executed automatically are called flows.

There are two types of supported flows: interval flows and resolver flows. An example of interval flow is claiming rewards every day or buying a portion of some token every 12 hours. In contrast, resolver flows often contain complex on-chain and off-chain logic, for example when using a limit order or managing positions on Uniswap v3.

PowerPool can be deployed on any EVM-compatible chain, such as Ethereum L2s, Bitcoin L2s, L3s, and parallelized EVM chains.

PowerPool network is operating on Ethereum, Arbitrum, Gnosis, Polygon, and Sepolia testnet, with more chains coming soon. It also supports Account Abstraction (AA) and Gnosis Safe via Partitura integration.

How PowerPool Simplifies the DeFi Experience?

PowerPool helps users automate scheduled transactions by offering Transaction Signing as a Service.

Transaction Signing as a Service runs on top of decentralized/permissionless PowerPool Keeper bots network. Keepers (network nodes) execute any kind of flows, intents, and yield strategies that are created by users or proposed by AI.

End users can use a service for automating their own flows. It doesn’t require them to self-host or run any kind of personal infrastructure (e.g., bots, blockchain nodes, etc.). Almost any kind of routine or flow can be automated.

Blockchain node runners/solo stakers in PoS networks can receive an additional revenue stream with PowerPool by running Keeper bots. By executing transactions, Keeper bots receive gas compensation and execution fees in native gas token of the blockchain (ETH for Ethereum, BNB for BNBChain, etc.). Running a node and unlocking a fee stream from executions requires staking CVP, PowerPool’s native token.

The Keeper bot running doesn’t require significant hardware capacity and can be run on top of typical validators/full node set up.

PowerPool Use Cases

Below are some use cases of the Transaction Signing as a Service:

  1. On-chain trading on DEXes with automatically executed limit orders, stop losses, and accumulation strategies (DCA).

  2. Execution of custom flows/transaction sequences, generated by AI.

  3. Automated cross-chain trading, lending, and transfers.

  4. Using lending markets and CDPs with liquidation protection. Users can borrow or make farming strategies based on looping with enhanced safety as their position  is protected from liquidation by the PowerPool network.

  5. LP management strategies on Uniswap v3 and similar DEXes.

  6. Automated fund management/yield aggregation. It includes custom vaults/compounding strategies, rewards accumulation, and restaking.

  7. Paystream services for individuals, DAOs, and grants.

  8. Automatic update of oracles or any kind of third party protocol variable.

  9. Automated points farming in protocols/rollups requiring multiple actions for receiving points and rewards.

PowerPool Architecture and the CVP Token

The CVP token utility

CVP is PowerPool’s native token. It has the following utility:

  • Staking for running a Keeper node.

  • Governance of PowerPool‚Äôs network and DAO decisions.

Node runners must stake at least 1000 CVP to run a node. The stake acts as a cryptoeconomic security tool, protecting the network against the Keepers malicious behavior or failure. In case of failure or other types of malicious behavior, a share of the stake is slashed.

CVP staking design:

  • The user creates a flow to be automated and defines the min/max number of stakes and the Keepers that will be allowed to execute this flow.

  • If the stake of a particular Keeper is less than the minimum, that Keeper won‚Äôt be able to execute this flow.

  • Bigger Keepers‚Äô stakes correspond to bigger execution fees. The upper stake, defined by the user, limits the execution fee.

CVP governance design:

  • Governance proposals can be submitted by token holders with the minimum quorum of 400k CVP votes required per proposal.

PowerPool’s dePIN network architecture 

PowerPool network consists of the core Agent contract, Jobs, and Keeper(s).

The Agent contract stores all the Jobs created by users. The running nodes listen to blockchain events using Websockets and constantly monitor on-chain data to execute any Job (if conditions are met).

The Agent contract stores data related to Keepers and Jobs. It also contains logic of execution fees calculation, transaction execution, and slashing.

Jobs contracts contain job properties, the target contract that should be triggered, the minimum eligible stake for Keeper, and other execution conditions.

Keepers are nodes executing Jobs. A Keeper is a bot that monitors the execution conditions for a job, and when they are met, the Keeper calls the agent contract for execution.

PowerPool Partners and Integrations

PowerPool is partnering and integrating with L1/L2 ecosystems, node runners protocols, Web3 flows/intents/AI protocols, and protocols aiming to automate certain actions according to their design.

Here are examples of PowerPool partners with more to come in the future:

  • Gnosis Chain - the associated execution-layer EVM chain for stable transactions.

  • DappNode - the leading decentralized node running software, accounting for 40% of Ethereum solo stakers nodes launched.

  • Gitcoin - A platform offering tools that enable communities to build, fund, and protect what matters to them. PowerPool is the first project utilizing Gitcoin Direct Grants Stack for grant payments and interactions with grantees.

  • Partitura is a protocol offering account abstraction solutions, automated workflows, and intent-driven AI. PowerPool acts as an infrastructure partner for executing automated workflows.

  • Breadchain - a post-capitalist and cooperative ecosystem that usesPowerAgent for yield distribution on Gnosis Chain.

  • SupremeDAO - a DAO focused on creating DAO-managed yield strategies.

PowerPool DAO Story

PowerPool was launched in 2020 with a brand new idea of a meta-governance protocol for accumulating voting power in DeFi protocols. After the Delphi Digital’s governance proposal, the DAO focused on the implementation of this idea using a concept of smart baskets of tokens, called Power Indices that can be referred to baskets of tokens.

Every launched basket of tokens was proposed by the community. Proposals were created by Delphi Digital, Yearn.finance team member, Sushi, and AAVE team member. PowerPool's protocol was featured in Paul Veradittakit’s newsletter, Binance Research, Cointelegraph, Messari, and Bankless. 

To make smart baskets work properly, it was necessary to automate certain actions. Since there was no on-chain automation tool available at the time, PowerPool launched its own network of Keeper bots in October 2020. It was used for staking tokens in third-party protocols, compounding returns, updating TWAP oracles, and smart capital reallocation.

Later on, in 2022, PowerPool focused on developing PowerAgent v2 ‚Äď the next-generation dePIN network for reliable flow execution based on on-chain/off-chain triggers. The main goal of development was to create a decentralized, permissionless, and robust network automating flows of users and third-party protocols on various EVM chains.

Now, the network is live on Gnosis Chain, Arbitrum, Ethereum, and Sepolia testnet with future expansion plans released in the 2024 roadmap.

Closing Thoughts

PowerPool's vision is that automation is the future of DeFi/Web3 user experience.

In the coming years, decentralized physical infrastructure networks (dePIN) like PowerAgent will handle an increasing number of transactions on behalf of users, reducing the need for manual actions. This shift is due to the rising number of automated flows and intent-based strategies generated by users, AI agents, and protocols, simplifying Web3 and DeFi usage for a growing audience.

As a result, dePIN networks offering Transaction as a Service will become the dominant consumers of blockchain space, accounting for a large portion of transactions in the near future.

PowerPool DAO aims to facilitate this transition with a network and toolset that provides dependable, decentralized, and permissionless automation services. This includes supporting user flows and intents, AI-created policies, protocols, and decentralized applications (DApps) that require automation triggered by both on-chain and off-chain events.