Liquidity Provision
Idle holders can provide liquidity to any of the decentralized trading pools in a trading pair such as IDLE/ETH. Providing Liquidity on AMMs generally requires an equal amount of ETH and IDLE

Sushiswap (Ethereum) Liquidity Pool

A liquidity pool is a core mechanism of AMM (Automated Market Makers), where at least two assets are deposited to form a trading pair. Whenever liquidity is deposited into an AMM pool, specific tokens known as liquidity providers tokens (LP tokens) are minted and sent to the provider’s address. The proportion of the pool’s liquidity provided determines the number of liquidity tokens the provider receives, and so by staking your LP tokens into the Idle LP Staking Program, Liquidity Providers are entitled to receive additional rewards in the form of $IDLE.
Currently, there is an IDLE-WETH liquidity mining program on the Sushiswap AMM as voted by the Idle Community. The Sushi liquidity mining program was voted with a total allocated budget of 180,000 $IDLE with a daily distribution of 6-months starting from April 2021. The community chose to use the Ampleforth Geyser model for distribution.
Site: Sushi $IDLE Pool​
Tools
Risks
Impermanent Loss and smart contract risk are the concerns to be aware of when providing liquidity at Sushiswap
Insurance
For insurance that would cover events such as contract bugs, economics attacks, or governance attacks, you would need to ensure Uniswap to have full coverage via an insurance protocol such as Nexus Mutual offers this type of insurance coverage.

Sushiswap (Polygon) Liquidity Pool

If you are using the Polygon network, you can provide liquidity on Sushiswap. Currently, there is a 20,000 $IDLE incentivisation program on the WETH/IDLE LP Pool. Providing liquidity on the Sushiswap-Polygon AMM works exactly as it does on Ethereum mainnet, with similar risks.
References:
Risks
Impermanent Loss and smart contract risk are the concerns to be aware of when providing liquidity at Sushiswap

Uniswap Liquidity Pool (Ethereum)

Uniswap is another AMM pool, similar to Sushiswap, where $IDLE token holders can provide liquidity into the pool trading pair of your choice (e.g., IDLE-ETH, IDLE-DAI, etc.). Currently, Uniswap has a V2 and a V3. On Uniswap V3, as the Liquidity Provider, you can concentrate the liquidity price range you would like to provide liquidity for.
Site
Tools
Risks
Impermanent Loss and smart contract risk are the concerns to be aware of when providing liquidity at Uniswap
Insurance
For insurance that would cover events such as contract bugs, economics attacks, or governance attacks, you would need to ensure Uniswap to have full coverage via an insurance protocol such as Nexus Mutual offers this type of insurance coverage.

Loopring Liquidity Pool

Loopring is a decentralized Layer 2 AMM with high transaction throughput due to it being built on zkRollup, an Etheruem Layer 2. Providing liquidity in the Loopring AMM works similarly to Sushiswap, with similar risks, except you have to activate your wallet onto layer 2. Liquidity providers earn a 0.20% fee on all trades proportional to your share of the pool.
Site: Loopring IDLE Pool​
Tools
Risks
Impermanent Loss and smart contract risk are the concerns to be aware of when providing liquidity at Loopring

Bancor single-sided Liquidity Pool (Ethereum)

Bancor is an AMM like Sushiswap and Uniswap, but with one key difference, which was rolled out in Bancor v2.1. Bancor now has Impermanent Loss (β€œIL”) protection if you stay in the pool for longer than 100 days. This protection starts at 30 days and scales to complete protection over 100 days. Currently, there are no incentivized rewards for the IDLE pool, but keep an eye out as there may be in the future.
Site: Bancor IDLE Pool 2​
Tools
Risks
Bancor smart contract risk and trusting the bancor v2.1 model 2. Bancor is audited​
Insurance
Impermanent loss protection in-built in the Bancor pools acts as a pseudo insurance provision to prevent loss. For insurance that would cover events such as contract bugs, economics attacks, or governance attacks, you would need to ensure Uniswap to have full coverage via an insurance protocol such as Nexus Mutual offers this type of insurance coverage.
Last modified 23d ago