Powaa Protocol

From DefiLlama
Jump to navigation Jump to search

Powaa protocol was built to swap all the obsolete assets on PoW Ethereum for ETHW after the upcoming Ethereum Merge towards PoS.

Powaa Protocol Key Features

  • Deposit Vaults: Users can deposit eligible assets into our vaults. After the Merge, Powaa Protocol will execute strategies using these assets to acquire ETHW (ETHPoW). Users will be able to claim ETHW on PoW chain. Original deposits can be claimed by users anytime on the PoS chain.
  • POWAA-ETH LP Staking Vault: Liquidity providers will receive a portion of the acquired ETHW (ETHPoW) as well as the POWAA token emissions. More details on providing liquidity to the POWAA-ETH liquidity poo

Strategy for Single Assets

They swap all the deposited assets (only on PoW chain) to acquire ETHW (note that post-Merge, the deposits will be left untouched on PoS chain). They will find the best routing for each asset to ensure they can get the maximum amount of ETHW. The steps we will take are as follow:

  • Take assets from the deposit vaults.
  • Swap assets on DEX for ETHW
  • Allocate ETHW back to depositors

Strategy for LP Asset Deposits

While you may hold LP tokens with ETH as an underlying asset, it does not necessarily guarantee that you will receive ETHW post-Merge. In fact, you likely will not get any share of ETHW by holding just the LP token, as opportunists will likely drain most, if not all, of ETHW from your liquidity pool.

By depositing your LP tokens with Powaa Protocol, they implement the strategy, as highlighted below, to help you acquire more ETHW without having to remove your LP from the pool. The steps are as follow:

  • Right after the Merge, Powaa Protocol will remove the LP token, receiving back ETHW & the other underlying asset in the process. (Please note that the LP token on PoS chain will remain untouched.)
  • Swap the non-ETHW asset to acquire ETHW.
  • Allocate ETHW back to depositors

Providing Liquidity to POWAA-ETH LP

By providing liquidity to the POWAA-ETH pool, you will receive the following:

  • A share of 25% of all ETHW acquired using the assets from all of the deposit vaults (distributed post-merge) Your share of the pool for rewards calculation will be determined at the Merge block.
  • A share of POWAA token emission from the Liquidity Incentives allocation
  • A share of 0.25% of the trading fees generated from trading activities of that liquidity pool