CDP & Stable Coin System Creation

🗂 Proposals 💡 Ideas & Improvements
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I know there’s been talks about being used as collateral for MAKER/DAI, but what about creating out own CDP and unique stable coin system? (USDI - IDLEs own stable coin)

Stakers would then earn a share of platform performance fees, but with this mechanism, stakers could also earn a portion of stability fees generated by this new system.

This would truly incentive staking with these type of rewards.

Make it a 2 week lock staking requirement to partake in performance fee sharing. And make it minimum 3 month lock to be able to partake in both performance fee and stability fee sharing.(But I know if we implement CRV staking model, somethings might need changing, but this is just an example)

Allow for top DEFI coins to be able to used as collateral initially to mint USDI: YFI, Alpha, Cream, Badger, Curve, Compound, etc…and of course IDLE as well. We can then setup something with curve, to allow users to easily swap these USDI stable coins for other stable coins.

Staked IDLE and users using IDLE as collateral to mint USDI are different things.

  • Staking IDLE allows you to partake in collection of stability fees generated by the protocol as well as performance fees. Also, IDLE stakers would still mint USDI, but it would act as the emergency pool and cannot be touched. BUT those funds would still be allowed to be swapped for other stables in the meantime to generate yield for IDLE protocol. The yield generated would then be used to buyback and burn IDLE from the open market.
  • Users using IDLE for themselves in order to mint stables for their own needs is different and they will not partake in stability fee or performance fee sharing.

We can then accept other permissionless assets overtime.

Liquidation ratio, stability fee, liquidation fee, can all be predetermined by the oracles in place and governance.

We can setup up oracles with chainlink and Keep3r to monitor activities needed for proper/safe/efficient CDP system.

There’s probably a lot more that goes into this, but just wanted to see what the community thought about some sort of concept like this. Also, IMO if had our own stable coin, I can think of many other crazy benefits and Ideas we could make from this, but I’ll keep it with only this info for now.

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I’m not sure Idle is big enough, or developed enough, to even consider trying to make it’s own stablecoin…

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Yeah I agree, but this wouldn’t be for right now. It would just be an extra milestone to add to roadmap. By then the platform will likely be well established IMO.

Also, even if they decided to do it now, what would be the issue in doing so? How big and developed do they need to be to create something like that? Genuinely curious.

Couldn’t we just put out a grant for someone to start working on this, if we wanted to? While allowing the rest of the team to stay focused on roadmap?

This would also allow current users to do something with their IDLE. I know I would personally use it to mint USDI…then I would swap it to USDC on curve… and then I would either supply it into IDLE USDC pool for APY or I would use those funds to buy more IDLE or other tokens with it.

Anyways, I’m cool with whatever. Just sharing Ideas. I saw a platform start doing something similar to this, so figured it wouldnt be too hard to get started. The platform is called.

https://unit.xyz/

Even if we dont do it, we should reach out and get IDLE listed as an asset on there as well. You can easily convert their stable coin to any stable coin on curve with ease. I know I would use it.