B.Protocol Co-sponsoring grant

Purpose

This topic has been brought up already by community members in our channels and also in the forum here by @idal. We therefore would like to propose the following:

This Gitcoin - Hackathon is a chance for Idle to co-sponsor a grant in order to build a yield farming dapp that is using Compound via B.Protocol. The prize bounty for this challenge is $4,000 USDT (2k$ Idle + 2k$ co-sponsors).

Importance

B.Protocol is a backstop liquidity protocol, already integrated on top of Compound and MakerDAO (with Aave next), enabling Compound users to manage their positions via B.Protocol smart contracts and an open source front end. Total TVL in B.Protocol is over $260m, as of today.

B.Protocol adds value by making lending platforms more stable by incentivizing keepers to commit on liquidation of under collateralized loans while shifting the miners’ extracted profits back to the depositors. Currently, liquidity providers are not allowed to participate in the keeper system.

B.Protocol is an interface to Maker and Compound (with Aave next) that gives its users exactly the same collateral and debt interest rates, and in addition allows its users to share the liquidation proceeds, and also get BPRO governance tokens.
B.Protocol’s smart contracts are fully compatible with Maker and Compound. Users can manage their B.Protocol positions using DeFi Saver.

Hence, any yield farming dapp that utilizes Compound would benefit by using them via B.Protocol.

By co-sponsoring the grant with a prize bounty of $4,000 USDT (2k$ idle + 2k$ co-sponsors), Idle expects to further incentive the developer community. Given the quality of code is approved and ready for production, Idle would be able to use Compound via B.Protocol with the aforementioned benefits.

Measure of Success

  • Increase in Compound APY (primary)
  • Increase TVL (secondary)

Success Criteria

  1. Community agrees with the idea and the Treasury League proceed to co-sponsor the Gitcoin grant
  2. Builders submit the code and both B.Protocol dev team and Idle’s Dev League review the code to assess quality and security
  3. Idle Leagues and B.Protocol announce winners and reward them with 4,000 USDT (2k$ idle + 2k$ co-sponsors)
  4. Upon grant completion, Idle Leagues can reach out to winners to understand if they’re willing to keep contributing to the Idle protocol, with the possibility to get into the Dev League within the next mandate

Desired Outcome

The APY of the IdleToken pools should improve as on top of the normal Compound APY, Idle would share the liquidation proceeds plus B.Protocol rewards. Therefore, it would be fair to expect an increase of new IdleToken accounts and possible increase of TVL.
Moreover, after Compound and with Aave integration next, Idle can be one of the early ones benefiting from B.Protocol liquidity providing incentives and opening the door for deeper DAO2DAO reciprocation.

Security Overview

B.Protocol smart contracts were audited by Solidified (link here Compound integration).

The audit was focused on verifying the security of user funds. The user incentive code was not part of the scope of the external audit, and was only reviewed internally by the team. However, it was verified by Solidified that user deposited funds are safe with respect to any (possibly even malicious) such code. Security audits do not eliminate risks completely and the risk of software & smart contracts can not be eliminated.

Integrating into B.Protocol would require Idle to connect to Compound via B.Protocol, opening up to additional smart contract risks with B.Protocol.

For example, Idle → B.Protocol → Compound

Next Steps

  • This post will be open to feedback for the next 24-48 hours
  • If there’s no arguments against this matching sponsorship, we will proceed with the official announcement
13 Likes

Fantastic summary @Salome

Great way to continue to expand the idle ecosystem building with like minded partners, helping to drive TVL and increase returns for users of the Idle Platform.

Also an excellent path to attract more talented developers to the protocol as you point out, which can help to accelerate the Idle journey.

Great initiative!

9 Likes

Hi IdleTeam, I am trying to build on top of this problem statement. Will give you some update in next 2 days.

8 Likes

Great to see that no issues were raised by the community and we can now move on with this exciting co-sponsorship! Hoping to see this come to life soon :rocket:

In order to spin-off the process, we officially launch this co-sponsoring and confirm the allocation of 2,000$ from the Treasury League budget.

We also would like to highlight that this co-sponsoring only rewards interfaces that help Idle creating new strategies. For more technical details please have a look at our documentation on how to integrate Idle protocol here.

7 Likes

HI @Salome, I discussed with @william and told me that from idle side need a new wrapper contract for BProtocol. I have implemented wrapper for it. here is the wrapper gist link for quick review,

But not tested yet working on testing side.
Also I think BProtocol needs Dapp for this project(not sure). so need to build UI also.

let me know if something I missing.

will give you more update soon:)

7 Likes

After some more talk it seems that this IdleCompoundLike wrapper, already in testing with IdleRAI in Beta, can be directly used if needed (some tests in fork should be added anyway)

5 Likes

Hi Team, This is my submission for the BProtocol co-sponsing grant.

7 Likes

We have finalized the review of the work delivered and the payment is processed, see details for verification below :money_with_wings::

  • 260 IDLE to 0x176c5Ef0FDf36736F9F1F1AC9376D6Dbb893cA14
    Hash : 0xab1e6ac07b7c7f0d39a478792ac0b0ed509a260103c14d2120a7ee255f41fb6e

Thanks to @sunnyRK for the great work and the outcome for the Idle community :family_man_woman_girl_boy: :heart::clap:

8 Likes

Hey @Salome , Yes, I got the Payment. Thank you Idle and B.Protocol Community :slight_smile:

6 Likes