Summary
This proposal is meant to formalize the agreement between Idle DAO and Fasanara Digital in an effort to solidify the relationship created with the development of Yield Tranches on top of Fasanara’s Clearpool pools.
Background
Idle DAO has been pioneering the DeFi credit securitization market with Yield Tranches during the last year, and is now bolstering the development of YTs based on institutional credit markets, as the product-market fit for tranche-based products is becoming clear by the day.
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As one of the first institutional borrowers onboarding into YTs, Fasanara Digital is amped to enter into Idle DAO’s ecosystem to benefit from YT’s risk-diversified liquidity layer and participate in its improvement process, while entering in an agreement that would allow optimizing the capital efficiency of their own YTs.
Fasanara Digital is a quantitative investment fund applying a scientific approach to investing in digital assets with the aim of achieving exceptional risk-adjusted returns for its investors. Fasanara Digital was started in 2019 as part of Fasanara Capital, a 200 people London-based hedge fund founded in 2011 that specializes in alternative credit and fintech strategies. Overall, Fasanara Capital manages more than $4 billion across different funds.
With the ultimate endorsement of Idle DAO and IDLE token holders, this proposal would set the stage for a wider ecosystem endeavor and greatly increase YT’s attractiveness for the DeFi credit securitization market.
Rationale
This agreement is part of Idle DAO strategic treasury diversification, as already voted and approved by IDLE token holders. The treasury diversification is intended to accelerate Idle DAO growth via more diversified liquidity management and an enhanced partner ecosystem.
This is planned to be a first instance of a series of strategic agreements with users and partners that actively participate in Idle DAO’s product suite. The reason for the strategic diversification is two-fold: enhancing the development of Yield Tranches and its ecosystem and better aligning our partners long term.
Specification
This strategic agreement provides the following:
- Fasanara allocating 150,000 USDC (or other stablecoins) to Idle DAO’s Fee Treasury.
- Idle DAO allocating 150,000 IDLE from the Idle DAO’s Ecosystem Fund to Fasanara.
- Idle DAO and Fasanara entering into a fee-sharing agreement for any fee generated by any Senior or Junior Yield Tranches based on Fasanara borrowing pools, up to the amount allocated by Fasanara in Idle DAO’s Fee Treasury
IDLE tokens taken from Ecosystem Fund will be subject to a 2-year vesting period, with a 6 months cliff and an 18 month block-by-block linear vesting.
This agreement can be extended in the future if Yield Tranches based on Fasanara borrowing pools will gain further traction during the next months, and the allocated amount can grow up to 400,000 USDC.
If the proposal is positively voted by the Idle DAO, the Treasury and Dev League will set up the required contracts, set up the transfer via the next IIP, and monitor and execute the fee-sharing agreement.
Next Steps
All Idle DAO stakeholders and the Ethereum community are invited to weigh in on the proposal. This proposal will be followed by a Temperature Check vote with the link published here, when ready.
Poll for $IDLE holders: 
Polls will close on 
