Aave V2 Liquidity mining support

🗂 Proposals 💡 Ideas & Improvements
1

On Monday 26th, Aave V2 will start its liquidity mining program redistributing 2200 stkAAVE/day to lenders and borrowers.

The markets that Idle currently support, that will be incentivized are: DAI, USDC, USDT, WBTC, ETH.
The distribution has a target end date of 7/15/21 with the option for the Aave community to extend the program. (stkAAVE are AAVE staked in their safety module. They earn interest automatically and can be redeemed for AAVE after a 10 days unlock period)

Technically speaking, in order to support the distribution of stkAAVE we would need to do 2 things:

Both of the above points would need 1 proposal’s action for each token, so a total of 10 actions (hard cap is 10 for a single proposal). We can potentially also disable Aave v1 for these tokens in the same action which set the govTokens list (this would save some gas costs for all users on mint / redeems).

I think we should support it for sure and redistribute rewards to the users like we do with COMP.

What’s your opinion on this?

9 Likes
2

+1
Great news for Idle´s depositors.

8 Likes
3

Absolutely. Fantastic news, fully support

6 Likes
4

Great news, let’s do it :raised_hands:

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5

It makes absolute sense to participate in this incentive campaign.

Given that IDLE already supports these markets it makes sense to participate in this program. Would it require immediate refactoring to the code once the LM campaign ends or can it be done soon after?
I take it the IDLE APY will increase for these markets. Do we expect it to be better APY or equal to Aave?

How quick can we get this implemented?

6 Likes
6

We need to refactor the code as soon as we want to support the distribution (rewards will still be accrued by the protocol from the start but not redistributed to the users until the change is made) and once it’s ended we don’t need to do anything potentially, besides something minor if we want to save some gas costs.

The update is not substantial, the code were already setup in a way that allows to support new governance tokens easily. I drafted the changes needed here, those should be tested this week once the LM starts

7 Likes
7

Looking forward to seeing this live in action.

5 Likes