Historically, AMM liquidity pool rewards management was the primary cause of $CVP inflation, with the approval of the DAO. Once the Treasury Charge goes live, and the Treasury itself can begin LPing $CVP in AMMs/DEXes on all supported chains, there should be no need for further $CVP inflation. Having the Treasury LP on the $CVP/native token pairs is necessary because the Treasury is constantly swapping native tokens for $CVP in order to convert the Treasury Charge collected automatically. This also means that the risk of IL associated with the $CVP/native token pairs will be socialised by the DAO.
Having the Treasury also maintaining sufficient AMM liquidity on the near perfectly-correlated $CVP/$lsCVP pair on all supported chains will enable instant trading between $CVP and $lsCVP with no risk of IL for LPs, either the Treasury or the Investors. Investors holding yield-bearing $lsCVP will be incentivised to LP $lsCVP by the share of AMM trading fees. This means that most smaller-scale exits from $lsCVP to $CVP will not need to wait for the Keeper redemption period.
Controlling $CVP inflation relative to the growth of automation and asset management fees, while maintaining Treasury buying pressure using the Treasury Charge native token revenues are all part of maximising the value of $CVP/$lsCVP. Treasury reporting should always include an overview of the CVP tokens in issuance, the numbers of $lsCVP staked, both directly by Keepers and the number of $lsCVP allocated from Investors. It should also include to value of the $CVP LPed to both $CVP/native token pools, and $CVP/$lsCVP pools. Ideally, the Treasury should not own any $lsCVP.
On-chain Treasury Reporting-Dune Analytics
The DAOs will manage a portion of all fees taken by the protocol/PowerAgent Network and direct them to the protocol Treasury. The approved Treasury Charge fees will be a percentage of Keeper fees earned and will be collected in native tokens on each supported chain, then auto-converted to Treasury $CVP on receipt, and distributed/earmarked according to DAO governance. This will maintain steady buying pressure for $CVP versus native chain tokens. Some Treasury $CVP will be used to maintain $CVP/native token liquidity pools on AMMs on Ethereum and also each supported chain. Some Treasury $CVP will be allocated to the Safety Fund. When launched, $LSTxxx PowerBasket management fees will also be paid in underlying native tokens, $ETH, $BNB, etc. and auto-converted to $CVP.
Over time, the PowerPool DAO Treasury will have various inflows and outflows:
Sales/Purchase/Deposits of $CVP Treasury tokens - Operations to acquire or sell lots of $CVP tokens held in the Treasury contract exceeding $10,000 in value must be authorised by the DAO, unless the operations are part of routine re-balancing of positions within limits already approved.
Contributions to internal insurance Safety Fund - any entity that wishes to survive long term should accumulate an internal insurance fund which the DAO can draw upon if necessary. The internal DAO Safety Fund is also available to cover slashing loss emergencies and Treasury illiquidity episodes as well. The Safety Fund fund is accumulated through periodic contributions from the Treasury, and by the proceeds from slashing Keepers for failed executions. For purposes of calculating NAV/ gains or losses accruing to $lsCVP, the value of the Safety Fund is included in calculations of Treasury NAV.
Management fees on $LSTxxx PowerBaskets - will be set by the DAO at the time of basket launch, but will be in the range of .25-.5% of TVL.