Treasury League and Development League
This proposal focuses on two initiatives
- IDLE incentives distribution update
- Euler staking PYTs as new yield sources for BY
For a comprehensive analysis of the initiatives, we suggest visiting the related governance post.
The DAO voted in favor of two proposals linked to the incentivization programs on IDLE
During the discussion we pointed out how a reduction of the daily distribution to the BY strategy together with a program extension could have multiple benefits:
- retain the current Best Yield’s liquidity (mainly sitting in the DAI, USDC and USDT markets)
- reduce significantly the selling pressure on the DAO governance token
The second proposal discussed, focused on the incentivization mechanism behind the Perpetual Yield Tranches, i.e. the Gauges system
The main reason to pause the distribution of the Gauges system is related to the composability issues faced by partners when integrating Idle’s strategies.
We will then move 45,000 IDLE from the Ecosystem fund, change the daily distribution rate on BY from 1000 to 500 IDLE/day and pause (0 IDLE/day) the distribution on the PYTs’ Gauges.
The Gauges system implemented will anyway stay in place and can be re-activated in the future if the DAO agrees.
For a comprehensive analysis of the initiatives and a background on Euler, we suggest visiting the related governance post.
The DAO voted to upgrade the yield sources of the USDC, USDT and WETH Best Yield vaults.
Similar to previous integrations, Euler staking ones would benefit doubly the Idle ecosystem
- Increase BY’s returns for the USDC, USDT and WETH vaults.
- Add a stable source of funding to the Euler staking Senior tranches and consequently incentivize the onboarding of new Junior liquidity.
We will then add the Senior tranches of Euler staking PYTs as new yield sources for the idleUSDC, idleUSDT, idleWETH Best Yield vaults.
The code for the IIP-31 can be found on GitHub here and consists of six actions.
- 1 action to set the PYTs Gauges distribution rate to 0
- 1 action to transfer 45k IDLE from the Ecoysystem Fund to the
- 1 action to set the new distribution rate of the Liquidity Mining program in the
idleControllerto 0.0698324 IDLE per block, i.e. 500 IDLE/day
- 3 actions to add the Euler staking wrappers to the idleUSDC, idleUSDT and idleWETH BY vaults.
Where the Euler staking (Senior) PYTs wrappers addresses are:
- Euler staking USDC AA PYTs
- Euler staking USDT AA PYTs
- Euler staking WETH AA PYTs
The temperature checks for the above proposals have already been successfully closed. In ~24 hours, we will open the on-chain voting phase for this Idle Improvement proposal.