[Proposal] Idle and Polygon $700k partnership to jointly scale DeFi yield aggregation

Summary
The Idle Leagues and Polygon team worked together to design an ecosystem expansion program boosted by $650k in $MATIC rewards and $50k in IDLE tokens.

This proposal would generate mutual benefits such as creating a deeper relationship between the protocols and making Idle a core component of the Polygon landscape.

Motivation
With the proliferation of yield sources (such as Cream, already integrated into Idle) on Polygon, yield automation and aggregation are becoming a unique value proposition to enable other projects to easily access different yield opportunities with just one integration effort.

Idle would represent a top-notch gateway to deploy funds and maximize returns, letting integrators focus on vault development, yield tokenization, fixed-yield products, and other on-top use cases.

Leagues already moved forward with the integration, deploying a beta release with DAI, USDC, and WETH Best-Yield strategies using Aave and Cream protocols. The strategies are already live and ready to be integrated.

Implementation
Idle Leagues came into an agreement with the Polygon team in order to dedicate a $650k $MATIC incentivization program.
Treasury League multisig will receive and manage funds allocated to this program.

The program would share $MATIC rewards with any integration partner that implements Idle’s allocation strategies as part of their Polygon underlying infrastructure.

A Dune dashboard, similar to the one for B2B partners, would track referrals and reward distribution over time.

Program outlines:

  • Max incentivized TVL: $300m, first-come-first-serve
  • APY boosting: +20% relative increment compared to APY provided by Idle strategies in Polygon, up to +1% net APY (e.g. 4% APY would become 4.8%; 8% APY would be translated into 9% final APY)
  • Rules: incentives are issued weekly to partners in proportion to the deployed TVL

The program is designed to last not less than 3 months, with the expected incentivization phase lasting about 4-5 months. The max program duration is 6 months: Idle Governance would give back any unused funds to the Polygon team after that period.

If Idle protocol reaches $300m TVL via partners’ deposits during the program, the Polygon team will commit an additional $1.35m in $MATIC to extend the program for 6 months more.

This program includes a $50k commitment in $IDLE tokens from Idle Governance to foster the development of native Polygon projects using Idle and the finalization of new implementations. Those funds will be allocated to the Treasury League multisig during the 6 months in proportion to issued $MATIC, and used for grants and hackathons.

Next steps
This post will be open for discussion for 3 days. If no material concerns would arise, the Leagues will launch the Temperature Check to approve this program.

10 Likes

Now this is an awesome idea.
Fully in favour of this!
Great job

6 Likes

Absolutely lovely, bring this up to vote yesterday :muscle:t3:

5 Likes

Thanks @Davide, great overview! :grinning_face_with_smiling_eyes:
No doubt on this: in favor of this partnership, let’s go :rocket:

7 Likes

It’s definitely a great opportunity and the right time for IDLE to ride the layer 2 wave as well :surfing_man: Let’s get this rolling, snapshot next!

8 Likes

I assume that this proposal refers to Polygon’s upcoming zk-rollup solution and not their Matic PoS (side)chain?

Especially since rollups have better security properties compared to sidechains, and the zk-rollup solution is supposed to be fully EVM compatible and interoperable with Polygon’s other solutions, meaning that Idle would still have access to the liquidity of e.g. Aave and C.R.E.A.M. Finance.

Polygon-Solution-Diagram

1 Like

Great ideal boys! happy to chuck in some liquidity.

4 Likes

Let’s move the proposal to the Temperature Check phase!

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

:alarm_clock: Polls will close 2021-09-03T09:00:00Z.

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

Cast your vote :writing_hand:


@Imferius, the strategies will be released on the PoS sidechain first; Dev League will also monitor new Polygon solutions, track their performances in their early days, and asses proper due diligence to evaluate if such releases are compatible with the Idle mission. Let’s get the ball rolling!

8 Likes

Poll closed! :white_check_mark:

With a unanimous decision, Governance has approved the allocation of $50k in $IDLE to foster Idle expansion into the Polygon ecosystem :building_construction:

Here below the results combining $IDLE and $stkIDLE votes:

Next steps:

  • Dune dashboard development
  • Rebalancer setup
  • Polygon strategies’ deployment

:rocket: :rocket: :rocket:

6 Likes