Authors
Treasury League and Dev League
Summary
This IIP is composed of the actions determined by two proposals:
- Introducing $IDLE Gauges model for Tranches
- Uniswap v3 - Liquidity Concentration and 50k IDLE Deployment)
This IIP transfers 178,200 IDLE from IdleController to IdleDistributor, reduces the IdleController’s idleRate from 0.5 IDLE per block to 0.3875 IDLE per block, and also transfers 50,000 IDLE from Ecosystem Fund to Leagues multisig for Uni v3 single-sided liquidity deployment.
With its on-chain execution in about 5 days, Gauges will effectively start distributing IDLE to staked Senior PYTs’ deposits.
Rationale
For a comprehensive analysis of each initiative, we suggest visiting the dedicated governance forum posts linked below:
Introducing $IDLE Gauges model for Tranches → Forum post
Idle DAO has already implemented two Curve-like modules: stkIDLE minting (locking system) and the fee-sharing mechanism.
This proposal is to introduce the Gauge Voting and Farming Boost modules, adding new Governance features to $IDLE on the Ethereum network.
The initiative will route 30% of the $IDLE currently allocated to the LM fund into the Gauge Voting for 6 months (178,200 $IDLE).
By integrating the Gauge Voting and Farming Boost modules, token holders that lock their $IDLE (minting stkIDLE) will be able to vote on PYT $IDLE allocation and also boost their individual rewards.
Main benefits of this proposal:
- Less $IDLE circulating supply due to more locked tokens
- Development of $IDLE booster vaults by other protocols
- New $IDLE-based products
- Protocols accumulating accrued $IDLE
- Alignment between LPs and $IDLE token holders
- DAO2DAO collaborations, with protocols fostering token holders to vote for their PYT.
Consequently, IIP-20 will:
- activate the Idle Gauges by transferring 178,200 IDLE from IdleController to IdleDistributor
- reduce the Best-Yield LM program’s IDLE emission from 0.5 IDLE/block to 0.3875 IDLE/block
Uniswap v3 - Liquidity Concentration and 50k IDLE Deployment → Forum post
This proposal finalizes the deployment of 50,000 IDLE out-of-range, 5x-10x above the current price (between $5 and $10). The position will be manually rebalanced, in case the token price reaches the $5 boundary.
Given that the target range is far from the current price, this action represents a single-sided IDLE deployment with no impermanent loss.
Main benefits of this proposal:
- Accommodate high-size swaps with lower slippage
- Strengthen the resiliency of the Uni v3 oracle against manipulation attacks.
Consequently, IIP-20 will:
- transfer 50,000 $IDLE from the Ecosystem fund to the Treasury League multisig
Specifications
The code related to this IIP is here.
IIP-20 actions:
- transfer 178,200 IDLE from IdleController to IdleDistributor: 1 action
- reduce the IdleController’s idleRate from 0.5 IDLE/block to 0.3875 IDLE/block: 1 action
- transfer 50,000 $IDLE from the Ecosystem fund to the Treasury League multisig: 1 action
On-chain Voting Phase
Cast your on-chain $IDLE vote here: IIP-20
End date: 2022-04-03T09:08:00Z
$IDLE stakers (stkIDLE holders) can vote here: stkIDLE snapshot poll
End date: 2022-04-02T11:00:00Z
The threshold to make the off-chain poll valid (both metrics should be reached):
- 30% of circulating stkIDLE voting the poll (min. 111,674 stkIDLE)
- at least 70% on the same option.
The stkIDLE voting calculator will be used to calculate the final results.
