Enable $IDLE liquidity mining on IdleFEI

đź—‚ Proposals đź’ˇ Ideas & Improvements
1

Authors
Idle Treasury League

Summary
This proposal extends $IDLE liquidity mining to idleFEI pool.

Rationale
Idle DAO initiated the journey to make the relationship with the vibrant Fei community stronger, representing a secure and fruitful place for FEI holders and Fei DAO itself.

With the Integration Standard Requirements already complied, 1 month in beta phase, and the pool’s TVL ($3m) that makes the rebalance cost sustainable, IdleFEI Best-Yield landed in production.

As a next step, we would like to introduce the idea of enabling $IDLE farming for the FEI pool. If Governance will approve this proposal, the idleFEI pool will then be included in the $IDLE liquidity mining program and will dynamically receive $IDLE depending on TVL and APY of the pool.

$IDLE liquidity mining would allow Idle to attract a wide potential target market ($500m circulating supply). At the same time, the extension of $IDLE governance ownership to FEI LPs would represent a way to incentivize participation in the upcoming idleFEI tranches (:eyes:), built on top of the Best-Yield strategy.

The Fei community will then have access to the “neutral” Best-Yield, “protected” Senior Tranche, and “leveraged” Junior Tranche, expanding the suite of yield optimization products.

The collaboration with Fei DAO could further incentivize liquidity provision thanks to TRIBE Liquidity Mining distributed via Tribal Chief Programs. Lastly, Fei DAO could also consider Idle as a yield source for its $1b PCV allocation, which is mainly deposited in Aave and Compound.

Specifications
The technical implementation will be developed by Dev League.

Actions:

  • idleFEI liquidity mining activation: 2 actions

Next Steps
We are going to leave this thread open for comments regarding this proposal, and in about 24hrs, if there are no objections, we will proceed with the Temperature Check.

9 Likes
2

Huge fan of this proposal! Great show of partnership from Idle community, and can naturally extend to the tranches product at launch

9 Likes
3

Welcome Joey!

I would prefer Tranches to have their own Liquidity Mining pool.

Idle Finance must be able to incentivize a new product in a different way than a flagship (the Best-Yield).

3 Likes
4

Bruno here from Fei Community! It is a win-win proposal. There is a big opportunity for a first FEI yield aggregator and this can be the start of a fruitful partnership with Idle Community.

3 Likes
5

Thanks all for your feedback!

Agree, there are lots of potential synergies between Idle and Fei :fire:

Indeed, $IDLE liquidity mining would be accessible both via Best-Yield and Tranches (as developed on top of Best-Yield). A smart way to incentivize two products with the same token emission.

That’s an interesting topic. Today, Tranches provide $IDLE incentives because they are all based on Best-Yield strategy.
Further incentivization programs might be designed, but that initiative would require some research on token emission model, budget, how to combine it with current LM. Leagues might deep dive into it after the release of Tranches based on other yield sources, analyzing early traction and organic APYs.

3 Likes
6

+1
Research needs to be done but key point is that since tranches are new product, appeal to (hopefully) different and new partners/users and they sooner rather than later integrate new yield sources, they should be incentivised in a different way than best-yield from the start.

1 Like
7

Let’s move the proposal to the Temperature Check phase!

:arrow_right: Poll for $IDLE holders: HERE
:arrow_right: Poll for $IDLE Stakers (stkIDLE holders): HERE

:alarm_clock: Polls will close 2021-10-29T13:00:00Z .

The final $IDLE voting weights will be calculated using the approved calculator .

Cast your vote :writing_hand:

4 Likes
8

Temperature Check approved :white_check_mark:

image
image843Ă—420 49 KB

:point_right: Nex step: on-chain proposal (IIP-15)

3 Likes