πŸ“… IdleGov Biweekly Update – 12/28/2020 [BW2]

First month of governance approaching! During the past two weeks, this governance forum has been the centerpiece of the protocol development for our community to fine-tune ideas and explore new proposals.

This bi-weekly article aims to recap the highlights of the Forum and summarize what has been discussed in the past days.

Key Metrics

  • Asset Under Management ($): 126M

  • Governance Token Holders: 1’735

Forum Highlights

  • :incoming_envelope: 9 topics created

  • :bulb: 1 Temperature Check

  • :busts_in_silhouette: 23 new members

  • :globe_with_meridians: 9,000 pageviews

  • :+1: 134 likes

Weeks in review

  • The first proposal, IIP-1, has been successfully executed. Published by the Quantstamp team, it aimed to mitigate and fix a known issue in the governance tokens distribution. In-depth disclosure of it has been published by Quantstamp in this blog post. The related proposal was launched on-chain and collected votes with a 3-day voting phase. On December 20th, it successfully passed and then got queued for execution, to then permanently fix the issue. Idle team released an analysis of the events and proposal journey.

  • Smart Treasury remained the hottest topic and kept advancing through the implementation process. Community launched a dedicated Grant which collected applications for 7 days. Two candidates applied: the collective @zuniswap and @8bitporkchop. After 3 days of voting, the Snapshot poll declared the latter winner for the Grant.

  • @noahniuwa introduced a new topic that caught the attention of both the Idle and DeFi community: a coverage to protect against the loss of funds. Many industry leaders contributed with their feedback, including @hughkarp (Nexus Mutual CEO), @AlvaroFernandez (Strategy & Growth at Nsure Network), @ted9423 (Community Manager at Cover Protocol).

Other discussed topics are:

For the sake of the update, it is worth mentioning that we are aware $COVER token had an issue with the Blacksmith contract, while Cover Balancer pools are not affected by it. We would advise our community to wait until there are more directions from Cover team before taking any decision, but this doesn’t affect the coverage nature of the protocol.

Next Steps

On the coverage side, Governance should form a consensus around a coverage pool to incentivize, if the insurance path has enough demand. This pool would need liquidity to bootstrap, lower the premium, and allow coverage seekers to buy the protection.

Idle has now available a pool in:

Possible distribution models here would be through $IDLE incentives to coverage liquidity providers, or dedicating a portion of the Treasury’s fees to provide liquidity (as reported also here).

Generally, incentivizing coverage providers could be the first step, while topics related to composability (eg including coverage directly in idleTokens) or Idle-owned coverage products might be discussed at a later stage.

On Smart Treasury side, @8bitporkchop is now working on an initial prototype. We would then proceed with a review process of the implementation, and in about ~20-25 days the implementation should be ready to ready to prod. It is possible to track the progress from this Github repository.

Further community discussion might be regarding a third-party audit of this new component. We would always endorse to follow standard-industry security processes, and governance can proceed by launching a new Grant for it, or an auditing firm can even propose itself to perform the audit for a bounty. Governance can then launch a Temperature Check and assign the task.

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