Introduction to ICHI <> IDLE Collaboration

đź—‚ Proposals đź’ˇ Ideas & Improvements
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Hey @Kobayashi welcome to the forum :slightly_smiling_face:

Sounds like a great initiative, we want to see what our community thinks about it, so we decided to collect here in this post all the questions and considerations that the Idle community wants to give.

:arrow_down: I the meantime I’m sharing here some questions already written in the telegram chat

  • Idle community: How it force to stable the $oneIdle?
  • ICHI: The idea is that at any given moment, you can trade your $oneIDLE to USDC at a 1:1 ratio.
  • Idle community: How long has ichi been live?
  • ICHI: has been live since November 2020.
    Docs.ichi.farm is the best place to go regarding information & documentation. 3 completed audits for V1, now in the process of completing 2 more with Quantstamp & Solidified for v2 coming soon.
  • Idle community: We may consider minting $IDLEDOLLAR or something like that to expand the usage of token.
  • ICHI: This is what ICHI does for you ! think about it as Stablecoins as a service - ICHI does all the heavy lifting, liquidity incentives programs, contract audits dev work so IDLE doesn’t need to deal with that - IDLE community just need to find the best use case to use it on their product, and benefit from it.

Idle community:

  1. Instead/besides of USDC, in the future could ICHI support idle’s interest bearing token IdleUSDC?

  2. Could $ICHI be added as an asset on Idle protocol in the future?

  3. In practical terms, what parameters configure oneIDLE?

  4. In practical terms how are the oneIDLE parameters (question 3) controlled (governance) by LP’s? Snapvotes? Forum/Discord/Telegram?

  5. What happens to excess liquidity when not all oneIDLE is minted?

  6. For someone deposit $oneIDLE on Idle protocol, what coding needs to be done from both ICHI and Idle side? Is it simple? Any security risks? Will it require audits?

  7. In the initial ICHI proposal its mentioned a possible 5x Yield increase. How did ICHI came up with this number?

  8. I have posted publicly (Roadmap Re-prioritization + New Initiatives - #4 by unicorn) that Idle DAO should start a discussion about how to best setup an “Hedge Fund” / “Portfolio Management” strategy for management of the Smart Treasury. My question (to the Treasury League) is if oneIDLE would be favoured instead of DAI/USDC/USDT if part of the Idle Treasury is swapped to stablecoins.

  9. Effort/Time: Following all the ideas posted initially on the Governance Forum + all questions from Idle community. Is it possible to have the dev team(s) (Idle/ICHI) create a table with what features DO NOT require any new code/audit and which ones would require new coding/audits (either by ICHI or IDLE).

  10. From ICHI’s side, how long does it take until everything is ready to be live in production?

  11. What minting ratio would you recommend for oneIDLE? I see that oneBTC is 94.90%, oneETH 84.10% and 93.40%… how/who came up with the ratio?

ICHI

  1. Yes. ICHI supports choosing stablecoin collateral to use.

  2. Yes

  3. The key parameters are the stablecoin collateral and the member token (in this case $IDLE). 1. oneIDLE would have a minting ratio which is the ratio of collateral to member token required to mint. This of course also requires oracles for managing member token and collateral price which drives minting.

  4. We’ve been using snapshot and then associated Multisig accounts to carry out the community votes.

  5. oneIDLE is only minted when a user triggers the mint event and provides the necessary collateral and member token. So the mint event is what takes the collateral and member coin and creates the oneToken.

  6. Very little! We have an audited factory model to create all necessary contracts in a secure, standardized and audited way.

  7. This would be based on associated ICHI and IDLE rewards which could be applied to use of oneIDLE.

  8. Absolutely, you could use oneIDLE across your system whether in treasury management or anywhere else. It aligns governance incentives really well I think to use it specifically for the mentioned strategy.

  9. Pretty much no new coding will be required! Happy to walk through the technical details but it is really that easy!

  10. Should be ready in a few weeks!

  11. Minting ratio always start with 100% - which mean the first $oneIDLE minted are backed 100% by USDC. gradually as the collateral buildsup, the ratio goes down in steps of 1.5%. this is part of how we make sure that there’s enough collateral to back the onetokens.

    What usually projects will do is they lend an initial deposit to the treasury of the onetoken, so minting ratio can start with a lower minting ratio i.e -( 80/20 )- this way from the first $oneIDLE minted, you will have an additional demand pressure on IDLE as it is required to mint new $oneIDLE.

    How much $IDLE ? This should be based on how much IDLE want to support the bootstrapping phase. and remember that the oneIDLE holders are the decision makers and controllers of that treasury

  • Idle Community: on your initial post you wrote:

⠀⠀⠀ Could this be deployed on idle?

  • ICHI: Yes, it’s up to the oneIDLE holders to decide how to manage the treasury (ICHI provides guidance on how to make sure the onetoken remains safe)

    There are 3 buckets a new oneToken community need to consider when evaluating the budget needed:

  1. Initial token to treasury (this is the incentive to reduce initial minting ratio)

  2. incentive to bootstrap the newly onetoken liquidity - i.e- farming rewards to encourage LP of $oneIDLE-$IDLE - here ICHI can match what IDLE community allocate so incentives are strong to drive enough of initial liquidity

  3. dev grants - ICHI usually receive a dev grant to support the execution of the new one token and the entire launch process (dev costs, gas costs for deployments of new contracts and all the ongoing work the ICHI team will do to help the new oneToken succeed !

  • Idle Community: I would like to ask you guys what would be a good estimate of the size of the initial loan & what rewards would ICHI be able to offer?

  • ICHI: Basically what we propose is some simple guidelines that help maintain a healthy treasury reserve ratio + driving IDLE demand from day1.

    We recommend minting ratio to change according to treasury reserve ratio:

    200% = 90% minting ratio
    300% = 80% minting ratio
    450% = 70% minting ratio

    Example - when it is set at 80% it means every new oneIDLE is minted with $0.8 USDC + $0.2 of $IDLE) —-> as long as treasury reserve is >%300
    if it goes up to 450% —-> minting ratio can go down to 70%

    How does IDLE get to those minting ratio? IDLE project / community can make a loan to the treasury of the oneTokens, and this will boost minting ratio , so from the first $oneIDLE minting , you need to use both USDC + IDLE.

    Here’s an example table of the concept that might help get the idea:

    image_2021-05-18_23-07-48 (1)
    image_2021-05-18_23-07-48 (1)1097Ă—314 12.9 KB

    How much of initial deposit ? think about it like another wallet to hold the IDLE $IDLE treasury - you can decide how much to hold there - the more you do —-> the more minting ratio is lowered —> the more IDLE demand is created upon minting new oneIDLE tokens

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