RariCapital

Summary

The purpose of this Snapvote is to propose to the Rari DAO to list $IDLE as a collateral asset in the Fuse Pool #3. Once the demand for $IDLE as a collateral asset is achieved and Idle has released the upcoming product (tranches), the next step would be the launch of the Idle Fuse pool, with users able to borrow and lend the idleTokens.

Details

With ~$3m on-chain liquidity, mainly split between Sushi and the Governance-owned Balancer pool, the proposed values are:

• collateral factor: 35%
• Reserve factor: 30%

The request is aligned with the INV listing and other previous proposals.

Motivation

Borrowing side: The token can be deposited in the LP staking pool (70%+ APY), and with the recently approved $IDLE staking (50% of the protocol’s fee shared to stakers), we expect to see increasing demand of $IDLE demand. These use cases generate borrowing pressure. Lending side: the Idle community is eager to have more composability features, and the lending primitive is the first one. Depositing $IDLE to get stablecoins would allow users to increase the capital efficiency, depositing the loan in Idle protocol to earn more $IDLE from strategies. This mechanism creates a win-win loop for both Idle and Fuse. ->Governance is discussing and preparing the next steps regarding Treasury diversification; thus, having $IDLE as collateral on Fuse would allow Governance to consider stablecoin loans. DAO2DAO relationship: Idle protocol recently launched the idleRAI pool. More than ~50% of the funds are deployed into Fuse, representing ~60% of the Fuse RAI liquidity and ~8% of the whole Fuse TVL. The listing of $IDLE would create a more solid bridge between the two communities.

Voting Options

Please cast your vote on one of the following options: FOR: Add IDLE as a collateral asset on the Fuse Pool #3 AGAINST: Do nothing