Idle DAO (stkIDLE holders)

The following is an extract of the proposal posted on the Idle governance forum.

Authors

Treasury League and Development League

Summary

The IIP formalizes the tokens transfer between Idle DAO and Fasaanara Digital as part of the strategic diversification plan. It also includes the funding of the Leagues’ budget for M3-2023.

References

• Idle DAO Strategic Agreement – Fasanara Digital post
• Leagues M3-2023: Roadmap and M2-23 Recap post

Rationale

1. Idle DAO Strategic Agreement with Fasanara Digital

This agreement is part of Idle DAO strategic treasury diversification, as already voted and approved by IDLE token holders. The treasury diversification is intended to accelerate Idle DAO growth via more diversified liquidity management and an enhanced partner ecosystem.

This proposal specifically formalizes the strategic agreement between Idle DAO and Fasanara Digital

As one of the first institutional borrowers onboarding into YTs, Fasanara Digital is amped to enter into Idle DAO’s ecosystem to benefit from YT’s risk-diversified liquidity layer and participate in its improvement process, while entering in an agreement that would allow optimizing the capital efficiency of their own YTs.

The agreement will be subject to the following conditions:

• Fasanara allocating 150,000 USDC (or other stablecoins) to Idle DAO’s Fee Treasury.
• Idle DAO allocating 150,000 IDLE from the Idle DAO’s Ecosystem Fund to Fasanara.
• Idle DAO and Fasanara entering into a fee-sharing agreement for any fee generated by any Senior or Junior Yield Tranches based on Fasanara borrowing pools, up to the amount allocated by Fasanara in Idle DAO’s Fee Treasury

The first point has already been fulfilled by Fasanara (reference Tx). The second point will be fulfilled by the Treasury League by sending 150,000 IDLE to the Fasanara vesting contract after the completion of this IIP.

2. Leagues M3-2023 Expected Budget

The expected budget for M3-2023 is $180’308 in stablecoin and 187’791 IDLE (using a 20-day rolling price at the time of writing).

The Treasury League multisig stablecoin holdings currently stand at $36,805 and 4’300 IDLE so if the Temperature Check for IDLE tokenholders is positive, $143’504 will be transferred from the Idle DAO Fee Treasury, and 183’491 IDLE will be transferred from the Ecosystem Fund via the next IIP and after completion of Fasanara Strategic Agreement.

The IDLE budget for M3-2023 has been adjusted. The full overview is available here.

Specifications

The code for the IIP-37 can be found on GitHub here and consists of two actions.

IIP-37 actions:

• 1 action to transfer 150,000 USDC from the FeeTreasury to the Treasury Leagues multisig
• 1 action to transfer 337,791 IDLE from the Ecosystem Fund to the the Treasury Leagues multisig

IDLE tokens taken from Ecosystem Fund will be subject to a 2-year vesting period, with a 6 months cliff and an 18-month block-by-block linear vesting.

This agreement can be extended in the future if Yield Tranches based on Fasanara borrowing pools will gain further traction during the next months, and the allocated amount can grow up to 400,000 USDC.

If the proposal is positively voted by the Idle DAO, the Treasury and Dev League will set up the required contracts, set up the transfer via the next IIP, and monitor and execute the fee-sharing agreement.