Hi Frax DAO!
My name is Salomé, I am a Swiss digital nomad and a member of Idle.finance DAO’s Treasury League. This proposal by @stefan just got caught up in the radar of our community and I decided to jump on board to provide some info and help here.
Lets build money Legos!
What is Idle Finance DAO:
Idle launched its DAO on December 2020 after the $IDLE release. The Idle community is committed to integrate and build DAO2DAO alliances with the best decentralized communities in the pursuit of strengthening the entire DeFi ecosystem.
On the protocol side, Idle is a DeFi yield aggregator optimizer that interfaces with several of the largest lending platforms (Compound, DyDx, Aave, Fuse), currently on Ethereum and very soon on Polygon. RAI capital within an Idle strategy can be allocated in chunks across several protocols simultaneously to maximize the average returns for depositors.
The tenets of Idle Finance are 4-fold:
- Competitive optimization technology (Dynamic Allocation Mechanism),
- High security standards (5 audits, $500k bug bounty program and safety criteria requirements for new implementations),
- Long track record (battle-tested since mid-2019).
- Yield infrastructure for B2Bs (focus on integrations with other DeFi protocols to develop the most secure infrastructure to connect with DeFi yields)
Instead of using a fixed allocation between Aave and Rari Fuse, enabling RAI AMO lending on Idle Finance would give the Frax community the best of both just by letting the Idle protocol continuously monitor these two protocols, and algorithmically allocate funds accordingly. Idle Finance would distribute stkAAVE and $IDLE, of course
Idle has recently started a [B2B partner program] to share up to 50% of the generated fees with integrators (e.g. up to $2m annual revenues for $500m routed to Idle). This is an opportunity to benefit from Idle integration and earn protocol fees for RAI deposits that originate from Frax.
We also have made a profitability calculator that Frax can use to better understand the yields it will get with integration on Idle Finance.
Automatic and dynamic rebalance mechanism instead of manual rebalance.
stkAAVE + $IDLE distribution. Holding the $IDLE token would give Frax the opportunity to participate in Idle Governance and in (single) Idle’s staking program.
Co-marketing activities between Frax, RAI & Idle: From tweets or blog posts covering this partnership to community engagement events such as AMAs.
Fostering deeper DAO2DAO alliances.
Lower gas fees overhead for Frax protocol
- Smart contract risk associated with Idle Finance codebase
The Idle Dev League is always available for any inquiries and support for new integrations in Discord (check for @Dev League tag).
After the integration and testing phases are completed, Idle Finance’s Treasury and Communication & Marketing Leagues would be keen to bring resources, marketing, business development expertise as well as incentivizing online community collaboration.
AMAs hosted on Idle, Frax and RAI Discord, and Tweeter Spaces would be more than welcome