Summary
This proposal is to approve the budget and goals for Leagues M3-2024 (July to September 2024) contributors and operations, and a brief outline of the achieved milestones for M2-2024.
M2-2024 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.
Main Releases and Partnerships
- Integration into Notum
- Integration into Superform
- Strategic Round Closure
- Gearbox Yield Tranches with Miles Points
- Unveiled the next iteration of Tranches: Reward Yield Tranches
- Launched the new RWA Best Yield
M2-2024 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 $17.2M, with peak of $21.8M and a clear rising trend.
Fees
Overall $77.8k has been accrued by the product suite. Of the aggregated fees, 76.9% is coming from Yield Tranches and 23.1% from Best Yield vaults.
(Source)
Budget vs. actual
Out of ~150k budgeted, Leagues spent ~80% of the funds. The remaining difference will be allocated to M3-2024 budget when approved.
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 M3-2024 Quarterly Goals
1. Institutional Strategy & Credit Vaults
After extensive development and strategic planning, we are excited to announce the imminent launch of two key components in our new product suite: a new Credit Vault and a new Strategy Vault. The Credit Vault is designed to focus on Prime Brokerage, enabling DeFi liquidity providers to lend funds and give access to deep liquidity to the industry’s most sophisticated asset managers, while benefitting from Prime Brokerage Risk Model to balance capital efficiency for trading firms akin to under-collateralized lending, while technically maintaining over-collateralization. This vault aims to streamline the lending processes, offering a robust solution that integrates with traditional financial institutions and meets stringent compliance standards.
Simultaneously, the Strategy Vault will offer on-chain access to Basis Trade yields, enabling users to capitalize on market inefficiencies through automated strategies. This vault will allow participants to engage in yield generation with transparency and reduced operational friction, leveraging smart contracts to enhance efficiency and reliability.
Both vaults will be rolled out in a phased manner and will operate on a permissioned basis. We have already garnered significant interest from committed liquidity providers and are targeting the release of the Alpha Phase within M3-2024. These developments are central to our broader vision of building a comprehensive credit network, bridging the gap between traditional finance and DeFi to create a more integrated financial ecosystem.
2. Credit Vaults as Collateral
As we approach the launch of our new Credit and Strategy Vaults, we are actively collaborating with partners like Morpho and Euler to establish a secondary overcollateralized lending market for both vaults. This market will be specifically designed for Credit Vault tokens, building on our earlier work in Senior repo markets which are essential to give higher efficiency to liquidity providers.
This setup will enable users of the Credit Vaults to leverage their holdings, enhancing liquidity and optimizing capital efficiency.
3. Reward & Yield Tranches
Despite an unexpected delay in the official release of our new Reward Yield Tranches (RYTs), due to a change in the underlying reward mechanism of one of our yield sources, we are pleased to announce that we are still on track for release in M3 2024.
Our upcoming Reward Yield Tranches will continue to offer users the flexibility to choose between receiving and leveraging direct rewards, such as points or tokens from liquidity mining campaigns, or opting for leveraging the underlying yield. This customizable approach caters to a wide range of financial strategies, empowering users to align their returns with their individual goals.
Furthermore, we are excited to include several new underlying yield sources from emerging protocols, which will launch their own yield and points campaigns in Q3-24. These additions will enhance the diversity and potential of our Reward Yield Tranches, offering users more opportunities to optimize their returns.
4. Data Layer Infrastructure Migration and UI/UX Improvements
The testing phase for our new data layer infrastructure has been successfully completed. We are now transitioning our current production environment to this new infrastructure. Early results indicate significant improvements in performance, with loading times reduced from an average of 15 seconds to just 5 seconds (x3 speed improvement). This enhancement is a key step toward delivering a more responsive and efficient user experience.
As we finalize this migration, our team is also working on making the infrastructure scalable to support new and upcoming products. This scalability is crucial as we continue to expand our offerings and accommodate the growing needs of our users.
Following the infrastructure upgrades, our next focus will be on enhancing the user interface and experience of our platform. Key improvements will include:
- Revamped Portfolio Section: We are redesigning the Portfolio section to provide users with a comprehensive and intuitive interface for monitoring and managing their deposits. This new section will offer a clear and concise overview of yield and exposure metrics, helping users better understand their allocations and returns…
- New Credit and Strategy Vaults Section: In addition to the Portfolio enhancements, we are introducing a dedicated section for Credit and Strategy Vaults. This feature will provide users with detailed insights and management tools, while allowing borrowers and curators to operate and provide recurrent reports to lenders.
5. IDLE liquidity & tokenomics
We are going to keep leveraging the capabilities of the Idle DAO Treasury to bolster token liquidity, particularly for AMMs featuring IDLE pairs. This initiative builds on our successful past efforts, as detailed in our community proposal here, where we strategically injected liquidity into various AMM pools. These actions not only enhance the accessibility of IDLE tokens but also support the decentralization and robustness of our ecosystem.
In addition to liquidity improvements, we are currently designing a series of exciting updates to our tokenomics structure. These updates are aimed at providing more value to our community and token holders, fostering a stronger alignment of interests. While we cannot reveal all the details just yet, we are enthusiastic about the potential of these innovations to create a more engaging and rewarding experience for our users.
Leagues M3-2024 Expected Budget
The expected budget for M3-2024 is set at $167’500 in stablecoin.
Currently, the Treasury League multisig holds approximately $34,000 in stablecoins and $39,000 in ETH/LRTs, based on current market prices. However, it’s important to note that $41,000 needs to be deducted due to the fee-sharing agreement as part of the Fasanara Strategic Deal. Should the Temperature Check for IDLE tokenholders yield a positive result, we plan to transfer $135,500 USDT/USDC from the Fee Treasury.
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 M3-2024 mandate (budget and goals) will be officially approved, and the budget transfer will be included in the upcoming IIP.