The idle protocol is collecting fee’s already in 7 different crypto currencies FeeAddress. It might be better to exchange the fee’s in their respected currencies to ETH, and use that as the ‘stable coin’ pair for $IDLE. In addition to this, ETH is the most liquid coin on DEX’s to trade against, and it is the native currency for ethereum. Finally, ETH should have lower IL than a stablecoin, (on the assumption that there is a stronger price correlation between $IDLE and ETH, than $IDLE and USD).
We also need to think about how much $IDLE we actually want to put into this pool, because the community needs to match 10% of that in the pair currency. Currently, the FeeAddress has ~$500 USD worth of coins, which means with a 90/10 pool, we can only add $IDLE worth up to $4500, however, this will change over time.
Some details I want substantiated are regarding the implementation
- The original article by Joel Monegro from PlaceHolder VC mentions that the protocol is the only whitelisted user to the pool? Is this something we want to do?
- When governance wants to add or remove liquidity, what are the risks, technical, and economic?
- What trading fees should we set. (I am of the opinion that since this is a protocol majority held pool, that the fees be set quite high)