Idle is the longest-running and most-resilient DeFi yield aggregator and rebalancing protocol, which offers allocation strategies that allow users to maximize returns and optimize risk exposure across DeFi protocols.
Recently we released “Perpetual Yield Tranches” in beta version here, capped at $500k during the guarded launch. Tranches allow users to enjoy optimized DeFi yields with built-in protection on deposits by holding the Senior class, and leveraged yield exposure with Junior one:
- Senior Tranche offers the safest way to access DeFi yields, thanks to its built-in protection feature. With this instrument, LPs can enjoy and participate in complex and exotic products, reducing the exposure to tail risks. Senior Tranches intrinsically have a first lien on the underlying assets — they’re first in line to be repaid in case of default (hack, loss of funds);
- Junior Tranche receives an amplified yield by carrying a higher grade of risk, as Junior holders have a second lien or no lien at all in case of fund losses. This class of tranches is designed to receive a higher share of yield compared to the Senior class, which will proportionally compensate their Junior counterparts for taking such risks.
We launched the first $DAI tranches pool that tokenizes the risks & yields of idleDAI Best-Yield pool.
More info in our announcement: Introducing Perpetual Yield Tranches - Guarded Launch Phase #1
Integrate Convex as an additional yield source for Idle Perpetual Yield Tranches.
The strategy should allow an IdleCDO to deposit Curve LP tokens (eg steCRV) directly into Convex and stake them in their corresponding rewards contract.
The staked position in Convex should be tokenized (through the strategy itself or an auxiliary contract) so to be compatible with IdleCDO (which expects to have an underlying token, eg DAI, alongside an interest bearing token associated, eg cDAI). So users will deposits curve LP tokens in the IdleCDO and then those funds will get deposited + staked in Convex through the strategy. The tokenized position will then be sent to the IdleCDO contract which will be the final holder.
All Convex rewards + Curve rewards should be sold and the gain should be redeposited in Curve so to generate new Curve LP tokens that can be then deposited + staked in Convex (here is an example of similar code from Harvest Finance).
An example of a tranche strategy is available here (for depositing in Idle).
Technical documentation for Tranches is available here.
500-2000 IDLE depending on completeness
- Security approach
- Gas efficiency
- Development grade (only strategy code, unit tests, tests in fork)
- Documentation completeness
- Plus for deployment scripts
No KYC or personal info required.
Deadline: November 15th
Devs can ask questions and receive support from Idle team by joining the dedicated Discord #Dev channel