Hello Simone from Dialectic here.
It’s awesome to see this excitement and this level of research on the smart treasury concept and I would like to integrate the discussion with my analysis too.
To support what I’m going to say I share here our analysis regarding Idle fees of the last days.
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First of all I support the concept of a 90/10 pool because it reduces drastically the IL and it implies a relevant slippage that discourages sellers. Idle is moving big but it’s not yet a mature protocol and although the utility of the token is clear it’s still not attractive to those who are unfamiliar therefore the main issue to face is the potential sellers that receive tokens for free and want to cash them out. A 90/10 pool could be effective in this sense.
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Based on the fees analysis we can see that 58.4% of the fees are made in COMP, 32.7% in USDC, and 5.9% in USDT. If we decide for a threshold of 1.000$ (see point no.3) to make the transfer to the smart pool sustainable, we would take 9 days to transfer USDC, 49 days to transfer USDT and so on. For this reason I would consider to create a 90/10 pool composed by 90 $IDLE / 10 $USDC. By observing all the other lending or yield maximization protocols, it is proven that the main pools are the stablecoins ones because the high borrowing request so even if Idle will add new assets it’s likely that the main pool will remain the ones we have already up and running today. If the other pools (USDT, DAI, sUSD, …) will increase their volume and consequently their fees we can modify the pool changing for example in 90 $IDLE / 5 $USDC / 5 $USDT or 80 $IDLE / 10 $USDC / 10$DAI. This will avoid an impact of 0.3% trading fees (hp) on the USDC fees and any other assets we decide to add to the pool.
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Regarding the threshold to transfer fees from the fee collector to the smart treasury as I anticipated above I would suggest 1.000$ because otherwise the impact will be too negative. In fact if we consider a trading fee of 0.3% + a tx fee of 3$ we would have an impact of 3.3% on 100$ and of 0.33% on 1.000$ much more sustainable.
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In any case as we can see in the table “Smart Treasury” if we allocate 80% of the fees to the Smart Treasury excluding a MARKET Sell of IDLE it would take approx 8 weeks to have $20K of liquidity in Non $IDLE Token ($ETH, $USDC or the token we are going to choose) and this is a really low amount for a “liquidity provider” function we expect from the Smart Treasury (even of last resort). What I suggest here is to combine the concept of the Smart Treasury with a traditional liquidity mining program inspired by Sushiswap where the LP of the Smart Treasury will be rewarded (1/3 immediately available, 2/3 after 6 months). Rewards will decrease over time while the portion of the treasury composed by the fees increases. More importantly, we decide what the rewards will be per week in order to limit the expansion of the pool beyond certain amounts (500K/1M) as it would become inconvenient and given that the pool is 90/10 and given the vesting period of the rewards I expect that the LPs will mostly be IDLE holders who they strongly believe in the project.