Power Capacitor

The Power Stake Protocol allows for the collection of a fee in the form of TBTs during the minting process when a user stakes into the protocol. This fee is directed towards the Power Capacitor and is owned by Power token holders.

As the protocol grows, various Time Vaults will be developed by both the Power Stake DAO and external developers, resulting in a large number of different TBTs being taken as fees.

The Power Capacitor allows for the arbitrage of these TBTs in exchange for depositing Power tokens. This process is typically carried out by arbitragers, who may accumulate a specific TBT within the Power Capacitor in exchange for a fixed amount of Power tokens.

The fixed amount of Power tokens is currently set to 100,000 but can be updated by the Power Stake DAO multisig.

Example

If Bob Power Stake and 8,000 TBTs are minted with a protocol fee of 1%, 80 TBTs would be taken as a fee and directed towards the Power Capacitor

If Alice, an arbitrager, knows that 80 TBTs can be exchanged for 1,000 USDC if they are burned and redeemed against the yield pool, and 950 USDC can currently buy 100,000 Power tokens, she might buy 100,000 Upfront tokens in order to get the 80 TBTs and make a profit by accumulating them from the Upfront Capacitor.

Currently, the Power Capacitor charges a fee to arbitragers in the form of TBTs, which are then directed to the Power Stake DAO multisig. This fee is implemented to maintain a constant supply of TBTs and prevent potential manipulation of a Time Vault's yield pool.

The protocol has a hardcoded maximum limit of 20% for the protocol fee, and the latest protocol fee can be retrieved by polling the subgraph

The Upfront Capacitor was previously referred to as the fToken Accumulator.