Idle DAO Strategic Round with Rockaway X


This proposal is meant to formalize the funding round and strategic agreement between Idle DAO and Rockaway X to solidify the relationship as liquidity providers and users of our product suite and pave the way for a new line of institutional-grade yield products.


Idle DAO is on a mission to empower the DeFi credit market with robust yield automation and hedging instruments, facilitating its expansion and establishing a foundation for sustainable financial ecosystems.

At the heart of our product design, there is a much broader thesis on the shifting DeFi lending market. It is formed on the core belief that, over the coming years, the global debt activity will move on-chain, making every transaction and loan programmable and auditable – as the world’s debt moves on-chain, liquidity providers will have the essential need to manage their exposure to it.

As one of the most prominent venture capital firms backing leading Web3 funds and founders, Rockaway X is amped to back Idle DAO to achieve this mission. In tandem with RoX Credit Fund, they will provide a robust foundation to develop Idle DAO product suite and contribute to long-term value creation by providing network, liquidity and community support.

Rockaway X has strategically employed Yield Tranches over the last years to effectively balance their risk and reward profile in managing institutional credit lines at the fund level. Through practical experience, they have witnessed the advantages offered by both Senior and Junior Tranches in optimizing their financial strategies.

We both recognize the nuanced risks associated with both DeFi securitizations and RWA-based loans, including traditional and novel elements. To address these challenges, our industry must develop hedging solutions. Current on-chain debt offerings often lack diversity, limiting their appeal, and the use of illiquid collateral in off-chain transactions introduces additional risk, catering only to a specific group of investors.

Together, we believe that the use of securitization and tranching methods can be a catalyst to grow DeFi’s reach. The long-term plan is to create a marketplace to facilitate this, by bringing diversification to the world’s on-chain lending and borrowing activity and allowing liquidity providers to customize, leverage or hedge their yield portfolio

With the ultimate endorsement of Idle DAO and IDLE token holders, this proposal would set the stage for a wider ecosystem endeavor and give support to build a credit and yield derivatives marketplace where liquidity providers can create their very own yield portfolio.


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 the first instance of a series of strategic agreements with Rockaway X, which will actively participate in Idle DAO’s product suite. The reason for the strategic diversification is two-fold: enhancing the development of our yield product suite and its ecosystem and better aligning our partners long term.


This funding round provides the following:

  • Rockaway X will allocate 1,000,000 USDC (or other stablecoins) to Idle DAO’s Fee Treasury.
  • Idle DAO will allocate 1,733,333 IDLE from the Idle DAO’s Long Term Fund to Rockaway X Vesting Contract.

IDLE tokens taken from Long Term Fund will be subject to a 2-year vesting period, with 33% released after a 12-month cliff and the rest with a 12-month block-by-block linear vesting.

The initial focus of this funding round will be to expand Idle DAO Leagues with new team members to streamline product suite development, and improve market liquidity to foster a more robust ecosystem.

In addition to the funding round, Idle DAO will allocate up to 866,667 IDLE from the Long Term Fund that will be distributed to Rockaway X Credit Fund according to the weighted average of the liquidity deployed across Idle DAO product suite throughout 12 months. This allocation will follow the same aforementioned vesting schedule. Details about the product, liquidity deployment, and distribution methodology for this strategic allocation will be further described and approved in a separate governance post.

If the proposal is positively voted by the Idle DAO, the Treasury and Dev League will set up the required contracts, and the initial operations for the funding round transfer via the next IIP.

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.


This partnership seems the best way to equip leagues with the resources to attack this new chapter of the market. In particular, I welcome positively these first actions


My thoughts, i wanted to vote on this yesterday!
Good job! Can’t wait to see how this evolve further.

Will RockawayX announce this also and mention IDLE in there portfolio?

Do they have more plans to help IDLE, for example community related?
Cos if i look at there website, this can be a really huge game changer for IDLE.


Once this proposal goes through the Idle DAO governance process, there likely will be announcement on both sides. De facto, Idle DAO will be part of Rockaway portfolio, and they plan to support beyond just the current strategic round.


Temperature check voting

The voting phase to approve the Idle DAO Strategic Round with Rockaway X starts now :ballot_box:

:arrow_right: Poll for $IDLE holders: HERE
:arrow_right: Poll for $IDLE stakers (stkIDLE holders): HERE

:alarm_clock: Polls will close on 2024-03-04T16:00:00Z

The final $IDLE voting weights will be calculated using the approved calculator.

Looking to delegate your vote on Snapshot? Follow the official Snapshot guide.

Let your vote count! :writing_hand:


Thanks for your reply.

Already thought so. :wink:

Is there anything to share about what kind of support we can expect? Or what similar projects have accomplished with being in their portfolio and their help?

Are there any expectations about what they are going to do with there stack of IDLE eventually?

I can imagine that not all can be discussed already, but do have my thoughts. :see_no_evil:

Rockaway X typically provides strategic guidance, fosters network growth, and grants access to its extensive network. Throughout its history, projects in their portfolio have experienced positive outcomes from sustained collaboration and support.

In my opinion, our collaboration with Rockaway X stands out due to its unique synergy compared to other portfolio companies. We are particularly focused on our broader thesis concerning the evolving DeFi lending market. As the world’s traditional credit markets transition onto blockchain, liquidity providers face the crucial task of managing their exposure and finding the right allocation for their yield portfolios. This is where the RoX Credit Fund becomes instrumental, offering support and liquidity to contribute to long-term value creation and enhancements for our product suite.

This would be the main focus, but as possibly one of the main tokenholders, I believe their support would be all-round, touching different areas of our ecosystem.


We are planning to support Idle team in several areas, including community. Super excited about this partnership.


Temperature check results

Temperature Check passed :white_check_mark:

The DAO shared positive feedback regarding this strategic round. Leagues will continue any additional formal step needed and include all the relevant actions in the next IIP


Update: Completion of Legal Processes and Finalization of Strategic Agreement

We are pleased to announce the finalization of the strategic agreement and funding round between Idle DAO and Rockaway X. This collaboration aims to solidify our relationship as liquidity providers and users of our product suite, paving the way for the development of new institutional-grade yield products.

Legal Completion
After extensive legal work to accommodate Idle DAO LLC for the investment, we have finalized the agreement. All legal documents have been signed off by both counterparties.

Key Challenges Addressed
The major complexity in finalizing this agreement revolved around establishing the legal framework for a new product we aim to build with Rockaway X: a new kind of Institutional Credit Vaults. Defining this framework required significant time and effort and was a strict requirement for the agreement.

Agreement Terms
The terms of the agreement remain largely unchanged, except for the investment structure. The investment will now occur in two tranches of $500,000 each with the second tranche tied to $50M TVL milestone, as partly mentioned in our previous update here. The first $500,000 tranche has been already deposited into the Fee Treasury controlled by Idle DAO.

Next Steps
With the legal processes completed, we can now launch IIP-39 on-chain and proceed with the vote. The major updates to the IIP include:

  • The IDLE tokens related to this investment will remain in the Long Term Fund for the next year as part of the vesting schedule.
  • The additional liquidity for IDLE AMM pools (in Uniswap) will be $75,000 given the two $500,000 tranches (as opposed to the initial Temperature Check which stated $150,000 in connection with $1,000,000 treasury increase) . We retain the option to deploy up to $150,000 liquidity in Uniswap once the second tranche hits the Idle DAO Treasury.

An amendment to the IIP-39 post will follow soon.


Congratulations you guys, can’t wait to see what the rest of this year (and ofcourse beyond) brings!