# Idle Smart Treasury (deprecated)
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Smart Treasury is [available here](https://pools.balancer.exchange/#/pool/0xcaf467dfe064a1f54e4ece8515ddf326b9be801e/)
{% endhint %}
### What is a Smart Treasury?
The research article released by [Placeholder VC](https://www.placeholder.vc/blog/2020/9/17/stop-burning-tokens-buyback-and-make-instead) in September 2020 proposes, for the first time, an automated buyback mechanism applied to Governance’s capital efficiency.
The process consists of deploying a [Balancer “smart pool”](https://docs.balancer.finance/guides/smart-pool-templates-gui) (referred to as *Smart Treasury* for this use case) which acts as an automatic buyback machine and liquidity provider.
### Smart Treasury Rationale
Since the $IDLE governance token launch, [the forum has hosted several discussions](https://gov.idle.finance/t/establish-a-smart-treasury/69) on how to increase the on-chain liquidity of the token and provide new use cases. The community analyzed liquidity mining programs in decentralized exchanges but preferred a Smart Treasury approach to incentivize liquidity provision in the long run.
A [snapshot poll](https://snapshot.org/#/idlefinance.eth/proposal/QmY91JDh8Z5KB2NJgJHTfoun472pAKegvSyRABBGBpK8X9) confirmed the community decision in moving forward with this proposal, and a [protocol grant](https://gov.idle.finance/t/grant-develop-a-smart-treasury/111) assigned the code development task. Lastly, the [peer review](https://gov.idle.finance/t/smart-treasury-peer-review/193) enabled safe program deployment that was executed with [IIP-2](https://gov.idle.finance/t/iip-2-add-a-smart-treasury-to-idle/211).
#### Ecosystem benefits
A Smart Treasury contributes to increasing token liquidity and reducing swap slippage. The fees generated from swaps are added into the pool and re-invested back into the Smart Treasury.
In addition, the pool is eligible for $BAL tokens from Balancer, serving as an additional income stream for the Idle protocol.
#### How the Smart Treasury works
The [Smart Treasury](https://pools.balancer.exchange/#/pool/0xcaf467dfe064a1f54e4ece8515ddf326b9be801e/) is controlled by the IDLE governance, which can adjust parameters such as pool weights, token additions/removals, swap fees, and pause/unpause swaps.
The pool manages the IDLE-WETH pair, with a 90/10 token weights.
130,000 $IDLE from the Ecosystem Fund along with \~$40k in WETH from the FeeTreasury bootstrapped the Smart Treasury.
Protocol fees are now routed across these ecosystem contracts:
* **FeeCollector**: this contract collects protocol fees and swaps tokens (stablecoin, $COMP, $WBTC) into $WETH using Uniswap.
* **Smart Treasury**: it receives 80% of the profits received by FeeCollector (in WETH).
* **FeeTreasury**: it’s the old Governance treasury, and it receives 15% of the profits in WETH.
* **Rebalancer**: this contract manages funds allocation for Best-Yield and Risk-Adjusted streategies. Due to continuous protocol rebalances, this mechanism is expensive and required a seamless stream of ETH. It is currently receiving 5% of processed fees.
Example of fee routing scheme:
#### Technical specifications
Smart Pool Parameters:
* Weights: 90 / 10
* Tokens: $IDLE / $WETH
* Swapping fee: 0.5%
FeeCollector address: [0xBECC659BFC6EDCA552FA1A67451CC6B38A0108E4](https://etherscan.io/address/0xBECC659BFC6EDCA552FA1A67451CC6B38A0108E4)
Smart Treasury address: [0x859e4d219e83204a2ea389dac11048cc880b6aa8](https://etherscan.io/address/0x4ff95c83e874df9029a665a0aba31828bada9596#code)
FeeTreasury address: [0x69a62c24f16d4914a48919613e8ee330641bcb94](https://etherscan.io/address/0x69a62c24f16d4914a48919613e8ee330641bcb94)
Rebalancer address: [0xb3c8e5534f0063545cbbb7ce86854bf42db8872b](https://etherscan.io/address/0xb3c8e5534f0063545cbbb7ce86854bf42db8872b)
SmartTreasuryBootstrap Address: [0x4ff95c83e874df9029a665a0aba31828bada9596](https://etherscan.io/address/0x4ff95c83e874df9029a665a0aba31828bada9596#code)
ConfigurableRightsPool (Smart Treasury) address: [0x859e4d219e83204a2ea389dac11048cc880b6aa8](https://etherscan.io/address/0x859e4d219e83204a2ea389dac11048cc880b6aa8)
Underlying bPool address: [0xcaf467dfe064a1f54e4ece8515ddf326b9be801e](https://etherscan.io/address/0xcaf467dfe064a1f54e4ece8515ddf326b9be801e)
The technical implementation can be found in this [GitHub repo](https://github.com/AsafSilman/idle-smart-treasury)
Multisig TX to transfer FeeCollector ownership to Governance: [0xad11f1cd69f53acb729e243b82e2b1a706eaa82a4b032dea5ca726dd312e563c](https://etherscan.io/tx/0xad11f1cd69f53acb729e243b82e2b1a706eaa82a4b032dea5ca726dd312e563c)
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