Over the past few months, the smart treasury has seen an inflow of ~100 WETH which has been used to buyback IDLE and increase the treasury holdings in $IDLE while also providing on-chain liquidity.
The smart treasury has also seen its share of trading activities, with 900 trades to date, however, it would seem that majority of this activity is due to arbitrators between other DEX’s.
I think that if we added a stable coin to the smart treasury it will add a number of benefits to on-chain liquidity, and for trading activity. Currently, the IDLE-DAI pair across balancer, Sushiswap and Uniswap have combined on-chain liquidity of ~100K.
I propose that we update the smart treasury with the following distribution 80/10/10 : IDLE/WETH/DAI.
This is equivalent to having the following weights for each pair:
88/12 : IDLE/WETH
88/12 : IDLE / DAI
This weighting makes trading IDLE / DAI possible with less slippage than on any other exchange. In addition to this, introducing a stable coin / idle pair means that price volatility in either IDLE or DAI results in greater trading fees for the treasury from arbitrators.
Additionally adding a WETH/DAI pair means that more trading activity with the pool as this is a major trading pair.
What does the community think of this suggestion?
Is there a preferred stablecoin to use (DAI?, USDC?, other?)
Does the weighting make sense?
(At this point this is just a suggestion for the community, technical implementation would follow based on the discussion)