Other > FAQs
On this page, we summarize all the FAQs included in our documentation split by category.
The algorithm is programmed to analyze the supply rate functions across integrated protocols and total funds in the pool, and it's able to constantly rebalance capital across any number of protocols to earn the highest interest rate possible with very high precision.
Several factors can trigger a rebalance. Factors related to network conditions/congestion, and if a new allocation exceeds the previous one by a significant percentage. Hence, the timing is variable.
In general, a rebalance happens every 3 hours on Ethereum and hourly on Polygon.
Yes, any user who has already deposited funds within one or more pools can add additional funds to the current deposited assets.
Each addition of new funds always requires a confirmation and signature via smart contract, and therefore require to pay the related network fees (not controlled or received by Idle in any case).
If a protocol is hacked wouldn't its underlying token be useless? How does Junior create value after an exploit?
If the attacker is able to completely drain a protocol, both Senior and Junior tranches would be affected. This event is extremely rare, as usually a hack is composed of recursive interactions that steal part of the funds. When the protocol itself is hacked, there are guardians that can pause the system and prevent further losses. Even if validators are directly hacked, it's unlikely that all the validators will suffer the same issue, just causing partial losses.
In this vision, Senior Tranche increases the security profile of the liquidity provider, adding an extra layer of protection: Junior Tranche deposits.
There are no locking periods or epochs and users are free to enter and exit at any time. The interest earned (and governance tokens, after being partially sold in the market) will be split between the two classes according to a predefined ratio called trancheAPRSplitRatio (e.g. 10% interest to Senior tranche holders and 90% to Junior tranche).
The base APY, before being split between tranches, is provided by the underlying strategy that takes into account the reinvestment of the accrued governance tokens (except for eventual IDLE rewards). The actual APY of each tranche class is determined by the ratio between the current underlying TVL of Senior and Junior tranches (i.e. APY = share of yield allocated to senior tranches/Senior TVL). The APY has to be considered net of fees.
The Treasury League deploys a vesting contract for each partner. Deployment is executed when the first payment is processed. The same contract will receive the following payments and only the referral address is entitled to redeem the vested tokens. Tokens are vested on a linear basis over a 3-month period and the partner can claim them anytime.
Your tier is calculated as the average Partner Deposited Asset (PDA) value between the first deposit and the first payment. When the fee-sharing transaction is executed, the tier is then calculated in the timeframe between that day and the next payment. You can check some helpful examples here.