I have written two proposals: “staking” and “tranches”. After reading the feedback from both, I thought of an idea that connects both of them. I wasn’t sure whether to add it to an existing forum or to create a new one since it combines both, so decided to start a fresh discussion. Sorry in advance.
For staking, users that stake, will get a portion of performance fees the protocol generates (10%).
For tranches, in order to partake in the high yield generating pools, you will need 1 IDLE for every x amount of USD/specific asset.
With mechanisms like staking eventually getting implemented and low circulating supply, IDLE will be to pricey for everyone to partake in High yield tranches. Because of this, they are only left with one option (To lease/rent IDLE token from platform during their investment period). In return, the platform gets a cut from that high performance yield they were able to enter.
I know all the above has been talked about briefly, but the info below, is the new combination implementation I was thinking about.
Staking(No Lock Required) - Users get 10% of protocol fees
Locked Staking - Users get 10% of protocol fees + a cut/fees generated from the high yield tranches.
Create 3 lock periods for staking
- 3 month
- 6 month
- 12 month
The longer lock stake period you choose, the more % you will earn from fees collected from the high yield tranches.
The locked staking pool, no matter what duration (3,6,12 month), will act as one pool, to make it easy to share/calculate fees generated. Users can “lease IDLE” from the locked staking pool, in order to be able to partake in high yield tranches. Fees % generated will get distributed in 3 different ways and quarterly (but this can be changed to monthly or w.e governance chooses).
Fees generated by high yield would be split as the following
12 month lock stakers: 65%
6 month stakers: 25%
3 month stakers: 10%
High yield tranches generate usually 60-100%+ APY. Many users will want to partake in this. Since APY is so high, it means cuts/fees for leasing IDLE from locked staking pool can be around 20% of w.e the user generated. As the platform gets more traction, these high yield tranches will bring in a lot fees. Many users will want to lock for 12 months to get 65% of that 20% generated throughout the year.
Also, locked stakers wouldn’t need to worry about losing their tokens, since it would simply be a protocol addition in order for users who don’t have any IDLE to be able to partake in high yield tranches. All tokens would remain in the “leasing/locked staking pool” at all times.
I know there’s a lot more that has to go in into creating tranches and so forth, but hopefully this helps other members from the team or community to think of extra additions that can help drive new and good utility for IDLE token.