Idle DAO (stkIDLE holders)

Summary

This proposal is to approve the budget for Leagues M2-2023 (April to June 2023) contributors and operations, and a brief outline of the achieved milestones for M1-2023 (more details will be released in the upcoming M1-2023 Performance Report).

Background

As we move forward in a rapidly evolving market, it is important to highlight the fact that the macro variables are still playing out, and the outcome is yet to be defined. However, we remain optimistic about the future and continue to stay focused on our mission to revolutionize the financial industry.

That said, looking at our ecosystem, we experienced a challenging March due to the Euler hack, which caused a delay in the release of this report. However, we were able to recover all the funds, and we made all users and partners whole. Our team worked with Euler tirelessly to ensure that the situation evolved in the best possible way, and we are grateful for their dedication and hard work.

As always, at Idle DAO, we are fully committed to helping update the financial system by building non-custodial structured yield products that expand the utility and adoption of DeFi. We believe that DeFi is a technology that can make the World’s financial fabric more equitable and accessible to anyone.

M1-2023 Retrospective

As reported and planned in the M1-2023 milestones, we have been proud to announce significant integration partners, and have been evolving our product suite, capped off by the release of the brand new Senior & Junior Best Yield vaults.

Below a closer look at some of the key achievements of the past quarter:

• Shapeshift Best Yield and Yield Tranches dashboard integration
• Sense Junior stETH Yield Tranches integration for fixed yields
• Swissborg Earn Junior stMATIC Yield Traches integration
• Morpho USDC/USDT/DAI Senior/Junior Yield Tranches release
• New Senior/Junior Best Yield vaults release
• New Stats page for idle.finance dashboard release
• Boosted Pool on top of Junior Best Yield vaults with Balancer release

M1-2022 DAO Metrics

While there will be a more comprehensive analysis of the performance and metrics for M3 with the upcoming M3 Performance Report, below is a quick overlook of the TVL and fees for Idle DAO:

TVL

Average TVL has been $54.1M (-11.3% wrt M4-2023) thought M1-23, with $84.2M peak.

BY & PYTs Fees

Overall $67k has been accrued by the product suite. Of the aggregated fees, 84.2% is coming from PYTs and 15.8% from BY strategies.

Budget vs. actual

The performance report for the current period will be released in the coming days, providing a more detailed look at the balance sheet and income statement for Idle DAO. This report will give our tokenholders a better understanding of the financial health and performance of the DAO and its product suite.

Leagues M2-2023 Quarterly Goals

1) Provide risk diversification to a wider yield spectrum

Looking ahead to the next quarter, our goal at Idle DAO is to provide risk diversification to a wider yield spectrum with Yield Tranches. Our aim is to create a set of structured products that would allow users to customize their yield portfolio based on their preferred risk/reward ratio.

Our experience tells us that investors in DeFi have unique risk management requirements, which is why we have been working tirelessly to develop a solution that satisfies these needs. We believe that this will provide a much-needed solution to help bring more users into the DeFi space and contribute to the overall growth of the industry.

Yield sources that we believe are a great fit for Yield Tranches’ risk diversification and which we will be focusing on are:

• Autocompounding boosted AMMs strategies
• Leveraged/folding yield strategies
• Delta neutral yield strategies
• Uncollateralized/RWA-based lending strategies

2) Expand Best Yield vaults and Yield Tranches to L2s

As we look to the future, Idle DAO is committed to building a multichain product suite that provides users with access to the best yield opportunities in different L2s. We believe that the future of DeFi will be built on execution layers (L2s) that interface with a consensus layer (Ethereum), and we see many opportunities for DeFi users in different L2s. However, moving assets across chains is highly costly and time-consuming, which limits the opportunities available to users.

To address this challenge, we are expanding our Best Yield vaults and Yield Tranches to EVM-based L2s as the first step towards a multichain future for our product suite.

By having multiple instances of our products in different L2s and leveraging account abstraction, we aim to make it instant for our users to access the best yield opportunities without worrying about choosing a chain or bridging assets. Our goal is to create a user experience that is easier, quicker, more accessible, and more secure than ever before, allowing users to pick the yield strategies that work best for them without the complexity of managing different chains.

3) Idle DAO LLC

Financial centers around the world are starting to enact clear rules with the objective of becoming crypto hubs from a legal standpoint. As a DAO, we are well-positioned to play a significant role in this new chapter of DeFi. We are committed to proactively participate in the conversation and are confident that our expertise will enable us to thrive in this new environment.

As mentioned in a recent post, the entity of choice will be an RMI DAO LLC. The Republic of the Marshall Islands is a unique country with several key advantages:

• Sovereign, internationally-recognized state
• Strong, respected judicial institutions
• Stability as a Freely Associated State of the US
• Fast-moving, adaptable legislative process that can keep up with evolving markets

Crucially, the RMI also strongly supports innovation. The country recently passed a law that enables DAOs to incorporate as LLCs with bylaws and membership that can be recorded on the blockchain. This fits all of our criteria.

In this way, Idle DAO would be incorporating within the current global regulatory framework and being able to capitalize on two legal benefits — limited legal liability and corporate personhood.

Leagues M2-2023 Expected Budget

The expected budget for M2-2023 is $163,183 in stablecoin and 86,942.43 IDLE (with 20-day rolling price at the time of writing).

Current Treasury League multisig stablecoin holdings currently stand at $68,223 so, if the Temperature Check for IDLE tokenholders will be positive, $94,960 will be transfered from the Idle DAO Fee Treasury via the next IIP. No need to transfer any IDLE at the current time.

Next Steps

This post is open for feedback and can be voted via this Temperature Check. If positive, the M2-2023 mandate will be officially approved and the budget transfer will be included in the upcoming IIP-35.