Summary
This proposal seeks approval for the budget and goals for the first Leagues mandate of 2025 (January to March). It also includes a brief outline of the milestones achieved during M4-2024.
M4-2024
Retrospective
As we close out 2024, we’re proud to reflect on an extraordinary quarter for Idle DAO. This period has been marked by intense focus and significant milestones, with the Idle Leagues working tirelessly to launch the first Credit Vault pools and set the stage for the migration to Pareto.
In November, we celebrated Idle’s 5th anniversary 
– a testament to the team’s unwavering commitment to building for the long term in a space where projects often come and go. This achievement underscores the resilience and vision of the core team.
The highlight of the quarter was the launch of our innovative lending and borrowing primitive: Credit Vaults. These are tailored borrowing solutions offering features such as:
- Dynamic interest rates: Loans with variable or fixed terms
- Flexible loan cycles: Adjustable repayment schedules and early withdrawal option
- Customizable KYC options: Privacy-preserving, zero-knowledge proof-based KYC policies
The Credit Vaults debuted with Fasanara Digital in early October, offering a credit facility focused on basis trade yield that outperformed the BTC funding rate by 1.5x. Since its launch, the FAS_USDC Credit Vault has consistently delivered superior performance compared to comparable strategies.
In early December, Idle DAO expanded Credit Vaults to L2s with the launch of a new pool in partnership with Bastion Trading on Arbitrum, accompanied by a reward campaign funded by the Arbitrum Foundation. Later in December, Credit Vaults underwent a comprehensive audit with Sherlock, further solidifying its security and reliability.
A new Credit Vault is set to debut soon on Optimism, marking another step forward in our roadmap.
The final quarter of 2024 also saw the introduction of a fresh brand identity for Credit Vaults, alongside a proposal to rebrand Idle to Pareto. This initiative aims to capitalize on the growing traction of our new primitive. As we move into 2025, we’re preparing for a pivotal year, with plans to implement a new tokenomics model designed to drive sustainable growth for Credit Vaults.
Performances
In anticipation of the forthcoming M4-2024 Performance Report, which will provide a detailed analysis of the protocol’s metrics, here’s a high-level overview of Idle DAO’s TVL and fees for the past quarter.
The average TVL during Q4 stood at ~$14M. While we’ve observed a temporary decrease in TVL we remain confident in the roadmap ahead. The Fasanara and Bastion Credit Vaults currently account for ~$11M, and liquidity commitments for upcoming pools are already in place, signaling strong momentum for Credit Vaults.
Fees collected amount to ~$86.5k mainly driven by new Credit Vaults, positioning the DAO for growth as these solutions scale.
Budget utilization reached 130% of the forecast, largely due to critical investments in auditing the Credit Vaults (Hans Friese, yAudit, Sherlock) and engaging tokenomics advisors to support the DAO’s evolving needs. The Leagues also pursued an Optimism grant via Sherlock’s track; however, the track exhausted its budget before completion, necessitating an overrun.
These expenses, while above plan, were essential to ensure the robustness and success of our initiatives, i.e. rebranding and Credit Vaults’ successful launch.
M1-2025 Goals
As we enter 2025, we are building on the solid foundation laid in Q4-2024 and setting ambitious goals to drive the next phase of growth for Credit Vaults and the Pareto ecosystem. Here’s what lies ahead:
1. Credit Vaults Growth
We aim to accelerate the adoption of Credit Vaults by launching new pools tailored to innovative use cases, including prime brokerage, cross-border payments, revenue-based financing, and market-making strategies. These offerings will cater to a diverse range of borrowers and liquidity providers, enhancing Idle DAO’s position as a pioneer in on-chain private credit.
Continuing the expansion of Credit Vaults across L2 ecosystems is a key focus, ensuring that we deliver efficient and scalable solutions for crypto users. In parallel, we are actively onboarding new borrowers and curators to Pareto, broadening the network and reinforcing the protocol’s accessibility.
2. Credit Vaults as Collateral for DeFi
Building on our groundwork of December, we are committed to enabling Credit Vault tokens to serve as collateral within DeFi protocols. This initiative includes deepening our partnerships with platforms like Morpho and Euler to establish a robust base to use overcollateralized lending markets for Credit Vault assets.
Additionally, we are exploring the possibility of creating a secondary market for CVs’ LP tokens, allowing retail users to buy these tokens without requiring KYC. This would significantly enhance the composability of Credit Vault tokens, paving the way for smoother integrations across the DeFi ecosystem and expanding product awareness and usage in the space.
3. Pareto Migration
Following the rebranding initiative outlined in the migration proposal, we will complete the final steps to transition Idle to Pareto. This includes a new staking model set-up and a token generation event, which we are targeting for completion by the end of Q1. We will leverage the incentives budget to drive growth and align the ecosystem around the revamped branding and tokenomics.
Our revamped structure and strategy will enable us to capitalize on the increasing interest in Credit Vaults, positioning Pareto as a cornerstone of on-chain private credit. By combining enhanced tokenomics with strategic growth efforts, we’re setting the stage for a transformative year ahead.
M1-2025 Budget
The expected budget for M1-2025 is set at $188’000 in stablecoin.
The Treasury League multisig currently holds approximately ~$13,000 in stablecoins and ~$37,000 in BTC/ETH/LRTs, based on current market prices. Should the temperature check for IDLE token holders yield a positive result, we plan to transfer $138,000 stablecoins or equivalent from the Fee Treasury.
Next Steps
All Idle DAO stakeholders and the Ethereum community are invited to weigh in on the proposal. This proposal will be followed by a Temperature Check vote with the published here, when ready.
If positive, the M1-2025 mandate (budget and goals) will be officially approved, and the budget transfer will be included in the next IIP.
Poll for $IDLE holders: 
Polls will close on 
