PowerPool announced last Tuesday, October 12, through its Twitter account, collaboration with NEAR Protocol, to launch indices and structured investment products.
“Today we are pleased to announce a collaboration between PowerPool and NEAR Protocol to deliver advanced structured investment / asset management solutions for the rapidly growing DeFi sector that is rapidly developing in Near. The diversified and high-yielding DeFi indices / pools, such as those managed by PowerPool, bring in new investors and persistent liquidity to drive DeFi’s growth in NEAR”, he said in an article published on the Medium platform.
According to the company, the planned NEAR combined investment token, tentatively titled ‘$ NEARDEFI’, will be another in the series of similar, diversified and actively managed investment tokens with the theme of PowerPool DeFi starting at $BSCDEFI, recently launched on Binance. Smart Chain. PowerPool Pooled DeFi Investment Tokens will make it easier for new users to gain exposure to NEAR DeFi growth with a single one-click token, offering rewards collected automatically.
Furthermore, he indicated that Powerpool will execute smart contracts on NEAR using Aurora, NEAR’s EVM execution environment. “More than just a basket of tokens: PowerPool offers actively managed pools / indexes with automatic collection of participation rewards from underlying tokens”.
The company noted that while highly incentivized wagering rewards on new chains with emerging DeFi sectors such as NEAR are highly attractive to investors, the proliferation of wallet problems and substantial price volatility and associated risks of periodic losses to the downside can act as a disincentive that slows down the process of acquiring TVL from an emerging chain.
“PowerPool hopes to solve this problem for NEAR and other EVM-compliant chains by offering thematic DeFi pools / indices with automatically collected rewards (betting underlying assets and collecting rewards that benefit token holders) and hedging options (options to ‘sell’ the short group token) by collaborating with lending sites or synthetic asset platforms). PowerPool investors will be able to own a bullish ‘long’ token (with rewards) or a defensive and neutral position in the market (combined token + short, combined token) while continuing to reap the rewards”, he added.
In his view, PowerPool’s active management of pooled assets involves frequent contractual calls, and the scalability of the host network plays a crucial role. NEAR’s incredible scalability is perfect for building a new generation of DeFi products with a high level of optimization and low operating costs. The Aurora EVM runtime environment plays a key role in implementing PowerPool in NEAR as it combines the innovation and scalability of NEAR with historically proven practices for creating smart contracts using Solidity.