[JOB] Treasury League - Open Applications (M4)

Dear contributors,

last 24 hours to share your assignment. Deadline approaching.

You can share your work either here in the Forum or by DM to @Biaf or @emixprime.

Assignments will be shared anyway with the community before opening the voting sessions.

@raghav1997, @gg658, @MrPink, @NancyN, @asdfg, @gil, @Kathleen, @ramya.rammzz, @Molinariv, @threepointonefour, @Elia, @sathwikkes.

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Assignment: Business Development

I recommend exploring a partnership with Centrifuge - a DeFi lending protocol backed by real-world assets. Their core-product is Tinlake - an open marketplace & investment DApp built on Ethereum.

Tinlake enables the pricing and tokenization of assets such as mortgages and ultimately locks them as collateral in so-called “liquidity pools”. Investors then can securely fund these pools, bringing liquidity to the borrowers and attractive returns to the investors.

One of the pools is New Silver, providing bridge-loans to real estate entrepreneurs that buy and renovate houses (so-called “fix and flips”). Another example is Paperchain, which collects streaming data from music labels and distributors on their artists, then uses their invoices as collateral for loans to pay the musicians more quickly.

Generating returns based on real-world assets (tin in the pool) allows for a well-calculated risk profile. Notably also because many issuers only finance up to a certain percentage of the value of the underlying assets to protect against default. After all, an attractive yield can be generated. For NewSilver the effective annualized return of the pool’s token over the last 90 days (90d APY) is reported at 22.07% for junior tranche. Tinlake’s overall annual percentage rate of return (APR) is stated at 27%.

Although Centrifuge tends to integrate with liquidity providers directly (e.g., Maker Vault in the case of NewSilver), partnering with aggregators such as Idle.finance could be a good additional option as Centrifuge is about to scale and plans to onboard new pools (source: LisCon session). The current Total Value Locked (TVL) of real-world asset originators is reported at $46.2 million, which according to internal documentation, are usually financed at 50-90%, depending on the particular risk profile.

To take further steps in evaluating this partnership, I would reach out to one of the (core) team members at Centrifuge. They are part of the Berlin ecosystem where I have several connection points. An initial conversation can quickly reveal relevant information regarding a potential collaboration including the current roadmap and pool pipeline.

I think very highly of Centrifuge and the team behind it, and believe that a partnership between Idle.finance and Centrifuge would lead to sustainable success for both parties involved.

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Assignment for Tokenomics contributors(Junior)

1ST TASK-TOKEN USE CASE-LENDING AND BORROWING

Adding a new feature for IDLE users to lend and borrow DAI, USDT, USDC by depositing ETH as collateral, after which that stable coins can be deposited into the IDLE’s strategies and farm IDLE.

IDLE as a collateral –

last month IDLE’s price high-Lows are as follows- 2.47$ - 9.52$
idle high low

If IDLE token is used as collateral, due to the volatile nature of the cryptocurrency the margin ratio would not be sustainable and most of the users would be liquidated in no time, also the falling price of IDLE would trigger a negative feedback loop(due to liquidation of collateral) which would further cause downward pressure on IDLE price.

now let’s see high and low of ETH in last 1 month -
Eth high low

Hence the Borrowing done using ETH is safer as compared to IDLE if used as a collateral . SO the ques is how will be IDLE used?

IDLE will be used as collateral of last resort.

COLLATERAL OF LAST RESORT –

IDLE governance token can act as a cushion to absorb losses beyond the expected losses from collateral locked in order to obtain the stable coin . This would reduce the chance of liquidation of assets given as collateral while retaining the voting rights for proposal in IDLE ecosystem .

EXAMPLE – (as on 07th DEC 10:00 PM IST)
CONDITION BEFORE DUMP-
Price of ETH – 4377$
Price of IDLE- 2.83$
User’s portfolio –
1 ETH (collateral)- 1 x 4377$= 4377$
1000IDLE (collateral of last resort)- 1000 x 2.83= 2830$

If a user deposits 1 ETH, the maximum he can borrow is 60%-70% of collateral (this is for the user’s safety as if more than 70% is borrowed the chance of liquidation would increase with just a minor dump)

So, with 1 ETH user borrowed 70% of 4377$ that is - 3063$

AFTER DUMP-(hypothetically)
Price of ETH- 3063$
Price of IDLE- 1.3$
User’s portfolio –
value of collateral-1 ETH - 1 x 3063$= 3063$
1000IDLE (collateral of last resort)- 1000 x 1.3$ = 1300$

In case of a dump, if no other collateral is given. the user will get liquidated as soon as the price of ETH falls below 3063$ as the price of the collateral should always exceed the borrowed amount which doesn’t give enough wiggle room , but if IDLE is used as a collateral of last resort the user can sustain much more drop while earning on the stable coin taken as loan and increasing the collateral of last resort everyday(which would help sustaining even more loss ) while paying the interest for the borrowed asset and also retaining the voting rights , also if we refer to the previous screenshot of IDLE’s high or low , due to high volatility and room to grow , more profits can be obtained as the the interest for the USDT will be constant while the profits earned in IDLE tokens can obtain more profit (due to high volatility) while keeping your asset(ETH) safe .

Problem with above approach : The borrowing interest would surpass the profit earned using IDLE strategies.

Solution: proposing a new strategy - DCA (Dollar cost averaging):

Dollar cost averaging is a strategy where only a percentage of money is used at an initial stage (from the buying condition) and as the cryptocurrency tumbles (dumps) larger size orders are placed in order to drive the average buying price of a crypto currency down. A profit percentage is decided from the average buying price. this works well in a bull cycle but also when the crypto space is going through a correction. this would help to gain more profit as the users won’t need to take the loan over the entire collateral at the initial stage and would require only a portion of assets and also increase liquidity

How will this help in overcoming the problem ?

As only a small amount of money is used at initial stage until price of the crypto currency drops, more loans can be taken hence reducing the interest rate accumulated over the time until the deals are closed in profit while keeping their long position on the collateral .

This is just one-way DCA(Dollar Cost Averaging) can be integrated where the problem stated above can be solved.


green line - target price
orange line - where safety orders are placed

Conclusion – if you are long on ETH, this proposal could help the user to avoid liquidation while earning with IDLE’s strategies . this can help you support minor or major dumps which keeping your asset safe while retaining your voting rights for proposals in IDLE. which in the bigger picture would help more money flow into IDLE token

Future enhancements-

1.To introduce IDLE’s own farming pools which would increase the yield for the users when substantial amount of money is flowing into idle.

2.Release IDLE’s platform token would help increase the use case of IDLE finance .

2nd TASK- TO IMPROVE IDLE LIQUIDITY - MARKET MAKING (Additional task)

-Humming bot: Humming bot is an open-source toolbox for professional liquidity providers.
( https://miner.hummingbot.io/ )
STEPS –
⦁ Get listed on a CEX/DEX humming bot supports – Ex- Ku coin , GATE.io
(How to List a Coin on KuCoin – KuCoin Help Center)
(New Coin Listing Request-Gate.io)

(Just by getting listed on Ku-coin or Gate.io will help IDLE attain more volume)
⦁ Partner with humming bot and participate in their liquidity mining campaign with IDLE-ETH pair
⦁ With the help of C&M league, launch a campaign to show users how to use humming bot.
⦁ Rewards will be distributed for the volume the humming bot users provide.

Humming bot uses market making strategies which are built in and users can also design their own strategies where they get rewarded on the liquidity they provide.

Though the ideas stated above are still work in progress but I am sure it will guide you in the direction I am thinking in and surely would improve over them and make them perfect. vote for me . thanks .

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Hey guys, hope you all had a great weekend.
My assignment:

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:alarm_clock: UPDATE: the deadline for assignments submission is over!

We’ve received submissions from the following candidates (via DM or publicly here in the post as a comment): @MrPink @raghav1997 @Kathleen @asdfg

Treasury League members will check the tests and will post soon their feedbacks.

Stay tuned here for the next updates! :slightly_smiling_face:

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i wish @MrPink could have shared his reply here where the rest of the DAO could check it :wink:

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Sure @unicorn! I have sent my outcome via DM! You can find it below:

ROLE :
Junior Business Development (part-time)

POTENTIAL PARTNER :
Revolut

WHY YOU SELECT THAT POTENTIAL PARTNER
Revolut is definitely one of the leading fintech companies worldwide, with a valuation of $33 billions and 150 million transactions per month (source: Coindesk Revolut to Launch Crypto Token: Sources (coindesk.com)). Today the company supports +50 cryptocurrencies and tokens and plans to do much more.

Revolut’s Head of Crypto, Edward Cooper, said: “More and more customers are requesting access to cryptocurrencies from their financial service providers. It’s another tool users can have at their disposal as they seek to protect and grow their wealth, along with gold and silver. Our goal at Revolut is to create a financial super app and by that we mean supporting any financial product that we feel we can make 10 times faster, 10 times easier, 10 times safer or 10 times cheaper. Cryptocurrencies are a great choice for hundreds of thousands of customers and we believe we can make them 10x easier and 10x safer”(source: The Cryptonomist - Revolut reaches 53 new tokens on the platform - The Cryptonomist). Moreover, crypto services make up about 15-20% of Revolut’s revenues (source: The Guardian - Cryptocurrency boom fails to stem losses at UK fintech firm Revolut | Cryptocurrencies | The Guardian), and considering that this market is very profitable, a company that operates within the crypto-sphere needs to save certain liquidity for its strategies and one of the coolest features of Idle is that funds are both allocated and rebalanced in the most efficient way to provide the best yield.

Today, Idle Finance is a great opportunity for the Revolut of tomorrow.

WHICH IS THE SIZE OF POTENTIAL LIQUIDITY DEPLOYMENT
To be honest, I don’t know how to estimate a reasonable liquidity deployment.

IF THERE ARE FORUM DISCUSSIONS OR GOVERNANCE INITIATIVE THAT COULD STRENGTHEN YOUR PROPOSAL
Revolut is a centralized application, so there are no forums where users discuss these topics and no governance initiatives can occur.
We can make other kinds of considerations. Since November, Revolut has started to look for technical lead roles with experience in building order-matching engines such as those used by crypto exchanges. So, this means that it wants to build its Crypto-exchange (source: Coindesk - Revolut Looks to Hire Tech Lead to Build a Crypto Exchange (coindesk.com)). Moreover, according to a rumour in September 2021, Revolut is also planning to launch its own token (BNB-style maybe): if so, the company could offer rewards or prizes to its users in this new native token on its platform (source: The Cryptonomist - Revolut would like to launch its own token - The Cryptonomist; Coindesk - Revolut to Launch Crypto Token: Sources (coindesk.com)).

Idle provides automatic asset allocation and aggregation to the interest-bearing tokens economy and I think this could be an option to consider to implement their business model.

WHICH CHANNEL WOULD YOU USE TO GET THE DESIRED OUTCOME?
I am in contact with a couple of employees who work in the crypto-team of Revolut.

Basically, this is a rough idea and there is a lot more to investigate. But if DAO members believe this could be a great path, I would be honored to try to make this partnership happen during my mandate.

Thank for your attention,

Mr Pink :slight_smile:

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:alarm_clock: UPDATE: Tasks Submitted by Candidates - Treasury League’s Feedback

As said above in the previous messages, 4 candidates sent us their submissions of the task published last week. Leagues will proceed to add them as official candidates into the elections polls, since they showed interest by submitting the tasks and gave us the opportunity to evaluate their profiles better.

Here’s the feedback from the Treasury League for the following submissions:

  • @raghav1997: The essay is aligned with the proposed seniority [Junior].

    Notes for the task
    The second task (Hummingbot) is a potential initiative that can be evaluated by the tokenomics team in the next future. The example showcased an adequate understanding of tasks planned on the tokenomics side. The Collateral & DCA proposal requires more in-depth analysis, as assumptions and testing environments are not clear.

    Overall feedback
    Raghav attended Idle DAO office hours, showing interest in Idle. The full-time commitment is a plus. The experience is aligned with a Junior position, and the sprint phase would help idle Leagues better understand what could be his role inside the team. According to the essay, in the future, he might cover a “strategist” role focused on new product design. Although that role is not needed at the present time, Idle DAO could benefit from his profile.

  • @mrpink: The essay is aligned with the proposed seniority [Junior].

    Notes for the task
    The proposal of the candidate is challenging. Neo-banks have long onboarding procedures, and due diligence requires a significant level of effort from the Idle DAO side (unless they now support incorporated DAOs). The essay correctly points out Revolut’s plan in the crypto space, with punctual references. The direct connection with an employee is a correct way to get genuine feedback and adjust the communication according to the partner’s needs.

    Overall feedback
    MrPink attended Idle DAO office hours, showing interest in Idle. His experience is aligned with a Junior position. Although a full-time commitment would have been preferred, his profile and essay are aligned with a Business Development role.

  • @kathleen: Kathleen’s profile appears to be the most senior candidate that applied for a role, but Leagues consider mid-level seniority as more suitable to her profile.

    Notes for the task
    Good use of terms and the choice of the potential partner is aligned with the business task.

    It’s not fully clear the exact integration dynamic that Kathleen proposes (Idle would deploy Best-Yield funds in Centrifuge or vice versa, or if Idle develops tranches based on Centrifuge tranches). Centrifuge would be a good fit as a partner, but its design (pools with fixed cap) can limit the market potential and scalability of that integration. The team is also working on Polkadot/Kusama parachain deployment, thus it’s not clear if Ethereum strategies will represent their main product in the next future. The direct connection with an employee is a correct way to speed up the finalization of the proposal.

    Overall feedback
    Kathleen’s profile shows a vast background in TradFi management roles and blockchain-related projects. She didn’t attend Idle DAO office hours.

    As the most experienced candidate, she can help the Business Development team to expand the audience and onboard new partners.

    It is the opinion of the Leagues that, given her profile and essay, she can join as a mid-level member.

  • @asdfg:

    Notes for the task
    The assignment shows a basic understanding of Dune functionalities, and the queries were mostly based on our dashboard snippets. It’s difficult to assess the actual data science and coding expertise based on this homework.

    For the time being, the level of expertise shown by the candidate would require a longer onboarding with respect to our current expectations for this role.

    Overall feedback
    The profile is aligned with the proposed seniority level but lacks some data science background experience as suggested. The candidate did not participate in the Leagues’ Office Hours, contributing to the decision to not endorse this application. Anyway, we would be happy to see BushiTong participating in Dune classes, and taking part in the analytics grants that will be released by Leagues.


All the submissions of the candidates are available publicly here.


Advisors

Application from @Salome

We believe the feedback for Salomé is implied: she has been actively working for the DAO since her candidacy for the Pilot League, Idle’s first subDAO.

Her continued commitment and desire to help grow the protocol leaves no doubt about the positive feedback for her candidacy as an Advisor.


Leagues Election Polls

:writing_hand: We can now move to the next step, the election phase:

Contributors Election

:arrow_right: M4 Treasury League - Contributors election (Idle Holders): HERE

:arrow_right: M4 Treasury League - Contributors election (Idle Stakers): HERE

Advisors Election

:arrow_right: M4 Leagues - Advisors Election (Idle Holders): HERE

:arrow_right: M4 Leagues - Advisors Election (Idle Stakers): HERE


:alarm_clock: All the snapshots will last 3 days, until 2021-12-13T22:45:00Z

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Thanks for the feedback! Just a small clarification re: “She didn’t attend Idle DAO office hours”. I was interested in attending but there was no available slot left. It said “no time in December”. I guess I was a little late to the party.

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ELECTION’S RESULTS :mega:

The voting phase is over! :end:

Final $IDLE voting weights were calculated using the approved calculator.

Congratulations to:

  • @raghav1997 elected as contributor for Tokenomics (Full-time, Junior)
  • @MrPink elected as contributor for Business Development (Part-time, Junior)
  • @asdfg elected as contributor for Finance (Part-time, Junior)
  • @Kathleen elected as contributor for Business Development (Part-time, Mid-lev)
  • @Salome elected as advisor for B2B Development and DAO incorporation legal process.

The next steps are members onboarding and operations setup.

Check Idle’s Discord for tomorrow’s onboarding meeting details.

Ready to push Idle and bring it to the stars :sparkles: :rocket:

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Congratulations to all the new hires, welcome to the Idle Leagues :clap::partying_face:

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Thank you very much! I’m looking forward to the onboarding meeting.
Though the link seems to be broken or permissions are missing.

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Thank you very much for the opportunity! It’s a pleasure for me being part of Idle Leagues :smiley:
I am also experiencing the same problem reported by @Kathleen

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@raghav1997 @MrPink @asdfg @Kathleen please sign up on Idle Discord and report here your nickname, we will activate your role and you will be able to join the event :raised_hands:

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Sure @Davide!
My nickname is “nicorom #1584:v:

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Discord ID: Kathleen#1649

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@Davide

Discord id - raghav1997
Tag-2512

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BOOTSTRAP SPRINT - NEW MEMBERS UPDATE :mega:

This is an update about the 2-week sprint phase for new members of the Treasury League:

Unfortunately, we weren’t able to contact @asdfg, and we never had the chance to evaluate his fitness for the Finance role. Hence we won’t include him in this new Leagues’ mandate.

@MrPink participated in the bootstrap sprint, but we felt it isn’t the right time to involve him in the Treasury League for this mandate.


Regarding @raghav1997, he worked on the research of active liquidity rebalancing platforms for UNI v3 and Bancor proposal, while @Kathleen worked steadily on the B2B program, initiating new conversations with potential partners.

Thus, from us, it is officially a green light for them to continue working with the Treasury League :partying_face:

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