Leagues M2-2024: Roadmap and M1-2024 Recap

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.

:jigsaw: Releases

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.

M1-2024 Idle DAO TVL

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.

3 Likes

Thanks for this post! I noticed that the budget for the treasury League growth is increasing here for ~10k, is this a raise of the salaries?
It would be great to have a more dedicated overview on expenses from the treasury league wallet as for use holders it’s not easy to follow. More transparency would be highly appreciated as after all these are the protocols fees that are used.

Thank you for your message. Yes, there has been an increase in the budget for the Treasury League growth, primarily to accommodate adjustments in salaries to align with the current market rates and seniority levels. Additionally, we have introduced a new allocation for a front-end developer within the Leagues, aimed at enhancing dashboard performance, which is crucial for improving user experience.

Regarding your request for a more detailed overview of expenses from the Treasury League wallet, we hear you loud and clear. Transparency is paramount, especially when it comes to protocols fees. We will address this concern in our upcoming performance report, which will offer a comprehensive breakdown of expenses. For reference, you can access previous mandates through here.

Temperature check voting

The voting phase to approve the roadmap and budget for M2-2024 starts now :ballot_box:

  • For - Agree with the M2-2024 roadmap and budget
  • Against - Disagree with the M2-2024 roadmap and budget
  • Discuss more - Discuss more the M1-2024 roadmap and budget

:arrow_right: Poll for $IDLE holders: HERE
:arrow_right: Poll for $IDLE stakers (stkIDLE holders): HERE

:alarm_clock: Polls will close on 2024-05-16T15:00:00Z

The final $IDLE voting weights will be calculated using the approved calculator.

Looking to delegate your vote on Snapshot? Follow the official Snapshot guide.

Let your vote count! :writing_hand:

2 Likes

@Teo I appreciate the effort to keep the community informed. However, I have some concerns and questions regarding the latest developments.

Firstly, there seems to be a significant increase in salary changes within the Treasury League. While I understand the need to align salaries with market rates and seniority levels, it would be beneficial for the community to have more transparency on these adjustments. Can you please clarify who decides the seniority levels in the leagues and provide market data to justify the substantial $10,000 raise?

Additionally, I would like more information about the new hire mentioned in the update. Who is this person, and are they part of the development league?

Lastly, I echo the sentiment of another community member regarding the need for a better overview of treasury spending. Transparency in expenses is essential for building trust within the community. Can you provide more details on how treasury funds are being allocated and spent? Maybe a treasury spending Dashboard?

I look forward to your response and appreciate your attention to these matters.

We appreciate the opportunity to address this questions and provide more clarity on these matters.

Firstly, regarding the salary changes within the Treasury League, the seniority levels are internally decided based on a combination of previous experiences, the value added to the organization, and the length of commitment. The compensation levels are aligned with market data, as highlighted in this report: DCCR23 Report. According to the report, international-based go-to-market roles – which include sales, marketing, and business development and are within the scope of the Treasury League – have average salaries ranging between $115k-$164k per annum for mid-level positions and $151k-$200k per annum for principal/senior-level positions. Even if adjusted for the cost of living of each contributor, our current average salary of $86k per annum for the Treasury League is still below the market average, even if aligned with the optimal burn rate.

Regarding the new addition to the Dev League, Nicolò Manni is an experienced senior-level front-end developer. He has been brought on board to work alongside @samster91 to enhance our dashboard UI/UX, support integration partners during pre- and post-integration process, and build data pipelines to improve either loading time and data visualisation.

On the matter of treasury spending transparency, our expenses can be monitored directly on-chain by reviewing the Treasury League multisig. All expenses are budgeted at the beginning of each mandate, and its precision is evaluated with the actual versus budgeted analyses of expenses. Additionally, we provide detailed breakdowns of the balance sheet at the end of each mandate in our performance reports, available here: Treasury Reports.

We hope this addresses your concerns and provides the transparency you seek.

Just published the M1-2024 Performance report

Temperature check results

Temperature Check passed :white_check_mark:

Leagues’ budget for M2-2024 has been approved and the needed transfers will be included in IIP-39.

1 Like