Thanks @AzFi @ETM612 @hughkarp for following up to this League Committee Governance initiative.
Can you guys please share some details of how the shield mining for idle will work?
Since there are 3 protocols involved I feel it’s crucial that the rest of the community understands how the money legos all would fit in this case:
- @AzFi stated “in addition to cover, Idle Finance will be eligible to receive a grant equalling the USD value of the coverage secured in the first cover purchase.”
@AzFi Would this grant be vested?
@Teo what is your favorite application for this grant in ARMOR tokens since the smart treasury right now only supports ETH and IDLE?
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@ETM612 mentions " We should also consider the costs in the context of the expected increase in TVL".
Is it fair to expect ARMOR and/or NEXUS to contribute to IDLE’s tvl? -
what happens to the IDLE rewards allocated to shield mining? Are they vested or can Nexus and/or Armor stakers dump them weekly?
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@hughkarp said “We generally recommend a budget of around $100k-$200k in the native token, $IDLE in this case, which would run a campaign of 2-4 weeks.”
In this format we are talking 1.2M-2.4M per year in shield mining IDLE rewards. Imo this is inline with Idle’s LP staking program costs and would not inflate circulation too much.
I fully support both insuring the protocol AND giving depositors the option to buy their own insurance.
If ARMOR and NEXUS stakers are incentivized to hold their idle rewards, shield mining is a great way to introduce idle to new investors and raise the utility of the token.
In this regard I would highly suggest that shield mining is timed in sync with the single IDLE staking program.