[IIP-29] Assets BY delisting, BY yield sources update, Governor update

[Biaf]

Authors

Treasury League and Development League

Summary

This proposal focuses on three initiatives:

1. Delist RAI, SUSD, TUSD and FEI from the Best Yield strategy and from the IDLE liquidity mining distribution.
2. Update the yield sources of the Best Yield strategy: remove the Senior Clearpool USDC PYTs and the Senior Clearpool DAI PYTs from the idleUSDC BY and idleDAI BY respectively.
3. Update the Governor voting delay following the Immenufy bug bounty.

Rationale

1. Delist RAI, SUSD, TUSD and FEI from the BY strategy and from the IDLE LM distribution

For a comprehensive analysis of the initiative, we suggest visiting the related governance forum posts

• Strategies revamp: unused assets wind down → Forum post
• Strategies revamp: unused assets wind down II → Forum post

@Teo

Both BY and PYTs strategies require a good deal of ongoing bandwidth to ensure users have a quality experience. Idle Leagues have been monitoring the performances of the strategies (as reported in the M2-22 report), and due to low profit margins or other externalities (eg FEI dissolution) we decided to keep in the main dashboard only the strategies with the most traction and efficiency.

@Biaf

Following the recent decision of the Aave’s community (see Aave’s AIP-121)

[…]

We plan to update the assets listed in the Idle Best Yield accordingly, i.e. remove sUSD and RAI.

In addition, we plan to delist TUSD tokens. These three assets have never reached a sufficient level of traction to justify the rebalance costs incurred by Idle DAO’s smart contracts.

This initiative aligns with the previous proposal to delist FEI and other PYTs tokens.

[…]

These four tokens won’t be anymore listed in the main UI under Best Yield, and deposits will no longer be available.

We will remove accordingly these tokens from the list of eligible assets receiving the IDLE incentives as part of the Liquidity Mining program distributed to the Best Yield strategies.

2. Update the yield sources of the Best Yield strategy

Through IIP-26 and IIP-27, Idle DAO approved the Clearpool Senior PYTs as new yield sources, in addition to Aave and Compound, for the BY’s USDC and DAI markets

@emixprime

IIP-26 actions:

• Add Senior tranche of cpWIN-USDC PYT as a new yield source for idleUSDC Best Yield strategy

Together with the above action, IIP-26 will set a new wrapper contract for the Clearpool USDC pool: 0xdb1b149177b5819cf467ad6519cf55416789300a

@Biaf

IIP-27 actions:

• Add Senior tranche of cpFOL-DAI PYT as a new yield source for idleDAI Best Yield strategy

[…]

Together with the above action, IIP-27 will set a new wrapper contract for the Clearpool Folkvang DAI pool: 0x67e78ED1cC4732816816A62F2e99CDC5CfaAc06E

Following the FTX collapse, both borrowers, i.e. Wintermute for the USDC market and Folkvang for the DAI one, fully repaid their loans to reduce their market exposure (i.e. utilization rate = 0%).

Removing these two markets from the Best Yield strategies yield source base will reduce computational complexity and gas costs in managing the allocation, harvesting and movement of funds. These markets could be later added again to the Idle Best Yield if the utilization rate will increase.

3. Update the Governor voting delay following the Immenufy bug bounty.

A white hacker discovered a very low vulnerability on a parameter of the GovernorBravo contract and reported it to Immunefy. We will then update one parameter to increase the Governor voting delay, after a proposal is launched, from 1 to 100 blocks.

Specifications

The code for the IIP-29 can be found on GitHub here and consists of seven actions

IIP-29 actions:

• 4 actions to delist four idleTokens from IDLE BY distribution: RAI, SUSD, TUSD and FEI
• 1 action to remove cpWIN from idleUSDC BY
• 1 action to remove cpFOL from idleDAI BY
• 1 action to increase the Governor voting delay from 1 to 100 blocks (Immunefy bounty)

The following BY tokens will be removed from the IdleController:

• idleRAI - 0x5C960a3DCC01BE8a0f49c02A8ceBCAcf5D07fABe
• idlesUSD - 0xF52CDcD458bf455aeD77751743180eC4A595Fd3F
• idletUSD - 0xc278041fDD8249FE4c1Aad1193876857EEa3D68c
• idleFEI - 0xb2d5CB72A621493fe83C6885E4A776279be595bC

Next Step

The temperature checks for the idleTokens removal have already been voted. Consequently, we won’t open a new temperature check to vote on the GovernorBravo fix and the Clearpool markets removal. In ~24 hours, we will open the on-chain voting phase.

[Biaf]

On-chain Voting Phase

Cast your on-chain $IDLE vote here: HERE
End date: 2022-12-23T18:30:00Z

$IDLE stakers (stkIDLE holders) can vote here: HERE
End date: 2022-12-23T14:00:00Z

The threshold to make the off-chain poll valid (both metrics should be reached):

• 20% of circulating stkIDLE voting the poll (min. ~145,164 stkIDLE)
• at least 70% on the same option.

The stkIDLE voting calculator will be used to calculate the final results.

Make sure you have been delegated to participate in this voting round.

[Biaf]

Voting results

IIP-29 hasn’t reached the quorum to be executed on-chain

Next steps

With the launch of the new Idle Dashboard , we moved the voting processes to Tally. This change of platform created some doubts and delays in the DAO users and we end up collecting a lower voting engagement than excepted, causing the proposal to miss the minimum threshold to be executed on-chain.

Still, we can see that the DAO agreed on the execution of the proposals under vote (Assets BY delisting, BY yield sources update, Governor update).

We will then re-open the IIP adding some additional actions.

Here’s a guide from the Tally team on how to vote using their platform

[AllinCrypto]

Except for figuring out how to vote with Coinbase wallet on Tally, all worked good and fast.

I think there where multiple reasons why there was less voting activity.

First 1 i can think of, voting on this proposal wouldn’t feel as a necessary thing.

Some members felt a bit disappointed about the big announcements of announcements around the new dashboard.
I was not, cos i know what this means for you guys and the future of IDLE.
But i can agree that there should be less announcements around such thing and only when 100% sure it will be launched within the announced range of time.

Further i see the less community activity in total at this moment. People taking some rest from crypto it seems… not much happening with BTC, ETH etc. Prices at this moment.

So if a next proposal will make it at this moment…
Maybe only with a personal approach
I will definitely try to help with some extra announcements when it’s there… so let’s see.
Worked before