[IIP5] – Bounty to Emiliano Bonassi, IDLE farming activation for the WETH pool & Aave v2 wrapper implementation

The IIP will be open for feedback for the next 24 hours; then, the Governance voting phase will start with the on-chain proposal launch.

IIP-5 skips the Consensus Check, as the community extensively discussed the proposed actions.

Authors
Pilot League Committee

Abstract
IIP-5 includes three implementations that can be bundled together to speed up their implementation and execution:

  1. 3,500 $IDLE bounty payout to Emiliano Bonassi, as voted by the community here
  2. Execute the code to enable IDLE farming for the WETH pool, as previously approved here
  3. Execute the code to implement Aave V2 wrapper in Best-Yield strategies, as discussed here

Problem
The IIP-5 implements the following three decisions:

  1. Rewarding @emilianobonassi for his outstanding contributions to expanding the Idle’s ecosystem :pray: :heart:
  2. The Idle protocol introduced the new WETH pool some days ago (see here for details). The strategy implements Compound and Aave V2 protocol, providing optimized yields across those providers. The WETH pool only enables $COMP farming, and liquidity mining incentives would make it more attractive to liquidity providers.
  3. Aave unveiled a strict roadmap for its migration plan, and the idleWETH implementation introduced Aave v2 support to front-run the migration execution. Aave will initially disable SUSD borrowing in v1 and extend the migration to the most used assets (DAI, USDT, USDC).

Solution

  1. An on-chain transaction can execute the 3,500 $IDLE bounty payment to 0x394495a3800d1504b5686d398836baefebd0c5b7 (Emiliano Bonassi bounty address)

  2. The idleWETH liquidity mining activation consists of 2 actions:

    • action to support $IDLE distribution to idleWETH
    • action to activate $IDLE distribution to idleWETH
  3. The Aave wrapper passed the peer security review, discussed by the Idle community in multiple governance discussions.
    Three phases will complete the Aave v2 wrapper implementation:

    • The current on-chain proposal will implement the Aave v2 protocol in idleDAI, idleUSDC, idleUSDT, idleSUSD, idleTUSD, and idleWBTC Best-Yield pools. If the Governance would like to extend the v2 functionality to the Risk-Adjusted pools, the change would require new on-chain proposals.
    • V1 and v2 will coexist, and funds will be migrated from the older version to the new market.
    • An on-chain proposal will dismiss Aave v1 support in the Best-Yield pools.

This Github repo hosts the technical implementation: idle-contracts/13-propose-aave2-wrapper.js at develop · Idle-Labs/idle-contracts · GitHub

Benefits
Emiliano Bonassi’s bounty aims to reward his commitment, talent, and efforts to our protocol. His contributions have brought more integrations with other DeFi projects and improved security. The Idle community benefits from these contributions as they expand and deepen Idle’s integration with the rest of the DeFi ecosystem.

Enabling Idle farming to the WETH pool will allow users to get $IDLE rewards by depositing funds in the WETH pool. This proposal can also help expand the Idle protocol’s growth, as there are more incentives to deposit WETH and increase the TVL.

Liquidity is continuously drained from Aave v1 in favor of v2. The idle protocol needs to move across liquid markets, and this would benefit the operativity.

There are also ongoing discussions regarding liquidity mining incentives for Aave v2, which could be an additional incentive to execute the migration.

The Journey

12 Likes

Thank you!

This is just the beginning, hope to contribute further :rocket:

Ps: the reported address is correct :wink:

4 Likes

IIP-5 started the on-chain journey! :classical_building:

Time to cast your vote! :writing_hand:
IIP-5 Link

:date: Ending on March 29th


Quorum for approval: 520,000 $IDLE

How to vote

2 Likes

Hi all,

Congrats to all involved in getting IIP-5 to this point so far :smiley: .

Below is a summary of the transaction costs I have been involved with, that should be refunded via the pilot league. The first transaction failed due to running out of gas, and had to be resubmitted.

Action Contract Sender Link Tx Fee in ETH
Propose IIP-5 (Out of Gas) Idle Governor Asaf tx 0.377
Propose IIP-5 Idle Governor Asaf tx 0.46404007
ETH Transfer - Asaf tx 0.002604

Total ETH: 0.84364407

5 Likes

Congrats on approving and queuing the proposal :tada:

In less than one day the queueing period will end, and the IIP can be executed!

4 Likes

The proposal has been sucessfully executed!

Aave v2 is now active on all ‘Best yield’ strategies and IDLE distribution is on for idleWETH. The grant of 3500 IDLE to @emilianobonassi has been awarded too.

We have now transferred the ownership of IdleWETH to the governance:

7 Likes

Congrats to everyone who participated thru Governance and made this happen🙏

6 Likes