Co-author: @William
Summary:
The Idle Labs team has been taking care of a couple of items in our community roadmap in the last weeks. The next step would be to go through a security review and bring these new features to the production stage, following a security-first approach.
Current ready-to-review items are:
- WETH integration for the Idle protocol
- Aave v2 wrapper integration
IdleWETH is currently available for test in the beta stage, and has the same structure as other idleTokens (audited multiple times). The only review we would need to have is on the Aave v2 wrapper contract (and a couple of lines to support WETH wrap and unwrap for the Compound wrapper). An ETH/WETH converter is available in beta, and will be available in prod once voted and live.
Rationale:
ETH is the most liquid asset (and next up in terms of PRF as reported here), potentially attracting a ~$3B worth of potential TVL. IdleWETH will be embedded with Aave V2 support. This would allow us to test Aave’s contracts with this new strategy and migrate other idleTokens next.
According to the Aave’s roadmap, the migration from V1 to V2 should happen in about one month. Even if this deadline might be extended, Idle protocol should schedule this update on time. The Idle community has been discussing this migration between Dec 2020/Jan 2021, and proposed an implementation in early Feb 2021. Aave v2 supports WETH, and in this way we would be able to optimize its rate between Compound and Aave. Other strategies and support for protocols might be added in the future.
An adaptive fix is already in place in IIP-4 to accommodate this implementation. The migration from Aave V1 to V2 would not likely happen in a single moment, but we expect a gradual process where funds are partially allocated to the newest protocol’s version.
I think this proposal had sufficient visibility and we can now move it to the security review phase and then proceed with the on-chain vote.
Code References:
Security Review Proposal:
We’d like to kick-off a review via dao.review via an official proposal in their forum, we estimate this can be processed in 1-2 weeks. This has also been proposed here, and no objections have been brought up – we will post a proposal in dao.reviews forum in the next few days.
After peer-review completion, we will proceed with a preemptive Consensus Check (1-2 days), and the related on-chain proposal (5 days) in order to bring ETH and Aave v2 for all idleTokens in the main dashboard.
Pending community approval, the last step would be to enable $IDLE liquidity mining distribution to idleWETH pool (either via the aforementioned on-chain proposal, or in a separated one).
