Idle Smart Treasury (deprecated)
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The research article released by in September 2020 proposes, for the first time, an automated buyback mechanism applied to Governance’s capital efficiency.
The process consists of deploying a (referred to as Smart Treasury for this use case) which acts as an automatic buyback machine and liquidity provider.
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.
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:
Smart Pool Parameters:
Weights: 90 / 10
Tokens: $IDLE / $WETH
Swapping fee: 0.5%
Since the $IDLE governance token launch, 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 confirmed the community decision in moving forward with this proposal, and a assigned the code development task. Lastly, the enabled safe program deployment that was executed with .
The is controlled by the IDLE governance, which can adjust parameters such as pool weights, token additions/removals, swap fees, and pause/unpause swaps.
FeeCollector address:
Smart Treasury address:
FeeTreasury address:
Rebalancer address:
SmartTreasuryBootstrap Address:
ConfigurableRightsPool (Smart Treasury) address:
Underlying bPool address:
The technical implementation can be found in this
Multisig TX to transfer FeeCollector ownership to Governance:
