Summary
This proposal is to approve the budget and goals for Leagues M2-2024 (April to June 2024) contributors and operations, and a brief outline of the achieved milestones for M1-2024.
M1-2024 Retrospective
We have been proud to announce significant integration partners, and have been evolving our product suite and DAO structure. Below a closer look at some of the key achievements of the past quarter.
Releases
- Yield Tranches for Morpho Isolated Lending Vaults
- Yield Tranches for Bastion Trading Credit Pool
- Yield Tranches for Amphor wstETH Vault
- Yield Tranches for Ethena sUSDe
- RWA Best Yield USDT: a diversified yield index for DeFi credit markets
M1-2024 DAO Metrics
In anticipation of a more comprehensive analysis of the performance and metrics with the upcoming M1-2024 Performance Report, below is an overlook of the TVL and fees for Idle DAO for the past quarter:
TVL
Average TVL has been $28.8M, with peak of $37.1M.
Fees
Overall $122.7k has been accrued by the product suite (+44.7% compared to M4-2023). Of the aggregated fees, 53.2% is coming from Yield Tranches and 46.8% from Best Yield vaults.
(Source)
Budget vs. actual
The excess of actual budget usage for TL is due to legal setup costs, while for DL operations is due to increased gas cost for Best Yield’s Rebalancer activities
The upcoming performance report for the last quarter of 2023 will provide a more detailed look at the balance sheet and income statement for Idle DAO. The report will give our tokenholders a better understanding of the financial health and performance of the DAO and its product suite.
Leagues M2-2024 Quarterly Goals
1. Institutional Credit & Yield Layer
Following years of refining and consolidating our DeFi product suite, we are now planning to broaden the foundation of our offerings, transitioning from solely integrating with other DeFi protocols to establishing our own yield layer. The primary aim is to construct an institutional capital network that facilitates on-chain lending businesses for credit experts, initially bridging institutional lenders and borrowers. Through collaboration with both traditional financial institutions and decentralized finance innovators, our vision is to reshape capital markets by fusing industry-standard compliance and due diligence with the transparent and frictionless lending enabled by smart contracts.
At its core, this endeavor seeks to leverage a financial services productivity loop strategy where building trust and relationship in the 1st product drives success in the next – building our products so that they are better when used together.
2. Senior Tranches Repo Markets
We intend to utilize emerging DeFi lending platforms such as Morpho, Euler, and others to establish a separate lending market dedicated to Senior Tranches tokens. This endeavor extends from the repo markets, which play a crucial role in the smooth functioning of nearly all financial markets.
By accepting Senior Tranches as collateral, we would effectively introduce a new category of tranches (lenders of Senior Tranches-collateralized loans could be considered “Super Senior” – or, in traditional terms, Senior-Mezzanine-Junior classes), enabling Senior Tranches holders to access a streamlined source of short-term funding and to hedge against primary debt issuance risks.
3. Points & Yield Tranches
We plan to release a new iteration of our Yield Tranches: a novel category centered on Rewards & Yields. This product line empowers users with the flexibility to choose between exclusively receiving rewards (be it in the form of points or direct rewards from liquidity mining campaigns) or opting for the underlying yield.
With this offering, users gain the autonomy to prioritize their preferences, selecting the class of returns that aligns most closely with their individual goals and strategies. Whether it’s maximizing rewards, optimizing yield, or finding a tailored blend of both, Rewards & Yields Tranches cater to the diverse needs of our users, providing a customizable solution for enhancing their financial outcomes.
4. New Yield Sources
We are committed to continually enhancing our offerings by integrating and updating yield sources for both our Best Yield and Tranches product lines. Our next milestone involves the incorporation of Gearbox passive pools, a development that promises increased yield efficiency for our users.
Furthermore, we are actively researching additional yield sources to expand our suite’s capabilities. Among these potential additions are Fluid by Instadapp, Airpuff, and Pendle. Through this ongoing exploration and integration of new sources, we aim to ensure that our users have access to a diverse range of opportunities.
5. Senior Depeg Protection
We are gearing up to introduce a new risk diversification layer for our Tranches, designed to provide depeg protection for stablecoins. This initiative is especially crucial for nascent stablecoins and structured products like Ethena’s sUSDe, which hinge their peg and yield on the profitability of their collateral.
Our innovative risk diversification layer will serve as a shield against potential depegging risks, bolstering the stability and resilience of these assets within our ecosystem. By implementing this strategic safeguard, we aim to instill greater confidence among users and investors, ensuring the continued reliability and viability of stablecoin-based product.
6. Improve UI/UX and update data layer to streamline loading time
We plan to elevate the user experience on our platform by enhancing the UI/UX of our dashboard. Our goal is to streamline the user journey on the surface, ensuring a more intuitive and user-friendly experience, while simultaneously empowering users to access granular data about their yield portfolios.
This improvement will be complemented by a comprehensive overhaul of our data layer infrastructure. By implementing a renewed data layer, we aim to significantly enhance loading times and overall usability, providing users with a seamless and responsive interface. Our commitment to innovation and user-centric design drives us to continuously refine and optimize our platform, ensuring that our users have access to the best possible experience.
7. IDLE liquidity & tokenomics, and Strategic Round closure
Additional initiatives include injecting liquidity into AMMs featuring IDLE pairs, aiming to enhance accessibility and bolster the decentralization of our ecosystem. In parallel, we’re set to expand the benefits of IDLE staking by extending fee discounts across our entire suite of eligible products. This strategic move aims to forge a stronger and more symbiotic relationship between token holders and product users, incentivizing active participation and alignment of interests. These enhancements are set to materialize with the completion of our upcoming Strategic Round.
Leagues M2-2024 Expected Budget
The expected budget for M2-2024 is $148’015 in stablecoin and 66’490 IDLE (using a 20-day rolling price at the time of writing).
At the time of writing, the Treasury League multisig stablecoin or equivalents holdings currently stand at $55’343 in stablecoins (excluding $129’353 in ETH/WBTC/altcoins, using price at the current time) so if the Temperature Check for IDLE tokenholders is positive, $92’672 funds will be transferred from the Fee Treasury (in either one or two installments), and 66’490 IDLE will be transferred from the Ecosystem Fund via the next IIP.
Next Steps
All Idle DAO stakeholders and the Ethereum community are invited to weight in on the proposal. This proposal will be followed by a Temperature Check vote with the published here, when ready.
If positive, the M2-2024 mandate (budget and goals) will be officially approved, and the budget transfer will be included in the upcoming IIP.
Poll for $IDLE holders: 
Polls will close on 
