Prime staking

Governance > IDLE staking > Prime staking

With the Prime Staking program, IDLE tokeholders can benefit from a performance fee discount by staking their IDLE and further enhance their yields.

In its initial phase, the discount fee will be on the Yield Tranches pools (besides the Fasanara YTs, part of the strategic agreement with the DAO) on Ethereum. It could later be expanded to the Best Yield vaults and other chains where the Idle product suite is deployed. A maximum cap of $5,000,000 on the deposit per wallet has been set for this phase.

For an overview of the fees applied to the Idle's product, please refer to the Fee structure page.

Goals

This strategic initiative offers a dual advantage. Liquidity providers, integral to the protocol’s revenue stream, will have the opportunity to benefit from a fee discount. At the same time, IDLE token holders will benefit from an enhanced utility for their tokens within the Idle ecosystem, potentially catalyzing heightened demand and an augmented volume of locked IDLE tokens.

This convergence of efforts aligns the objectives of diverse stakeholders in the long term and has the potential to cultivate a more dynamic and robust governance framework.

Methodology

Users should have the staked IDLE in the same wallet that they use to deposit in the Idle pools.

Leagues will manually distribute the discount in the form of the underlying LP tokens of the pool once a month using a dedicated dashboard for the actual matching of stkIDLE and deposits with the relative fee generated and the fee discounts. The process of discount distribution will be then automated letting users receive the discount directly in their wallet.

A minimum threshold of distribution equal to $100 will be applied to avoid demanding transaction management. Undistributed discounts will be accrued and shared once the minimum threshold is met.

This methodology allows depositors to increase their locking period over time to maintain the discount tiers of interest.

Users can increase their stkIDLE balance by both staking more IDLE into their existing lock and by increasing their lock end date.

Beneficiaries

The fee discount is available for the IDLE stakers.

Other beneficiaries, such as the depositors in the 80-20 IDLE-USDC Balancer pool or the ones in the IDLE-WETH pool on Liquis may be added in the future conditional to the DAO approval.

Discount tiers

Tier	IDLE	Locking	stkIDLE	Discount	Discounted fee
I	10,000	4 years	10,000	5%	14.25%
II	25,000	4 years	25,000	10%	13.50%
III	50,000	4 years	50,000	20%	12.00%
IV	100,000	4 years	100,000	30%	10.50%
V	150,000	4 years	150,000	40%	9.00%
VI	250,000	4 years	250,000	50%	7.50%

This summary table assumes that the IDLE tokens are staked for the longest length available, i.e. 4 years.

stkIDLE linearly decreases from the lockup date to the end date. The maximum locking period is 4 years.

Shorter staking periods will affect the discount applied. Following the amounts presented in the Tiers summary table above, a locking of 2 years will make T1 not applicable. Similarly, a locking of 1 year will make T1 and T2 not applicable and so on.