Tranches Documentation
The aim of Idle Perpetual Yield Tranches is to pool digital assets (eg DAI, FRAX, MIM, ...), deposit them into a yield source (eg Idle Finance, Lido, Convex, ...), and split the interest received between two classes of users with different risk profiles.
One will gain more interest and will be riskier (BB or junior tranche) and the other will have a lower APR but more safety (AA or senior tranche).
In the case of a hack or a loss of funds of the lending provider integrated (or any other protocol integrated by this provider):
  • All funds still available will be used to refund senior tranche holders first with the aim of making them whole;
  • With remaining funds, if any, junior holders after.
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 (eg 10% interest to AA holders and 90% to BB).
The rate is variable for both classes of tranches.

Codebase

The codebase and a general overview of the architecture can be found here: https://github.com/Idle-Labs/idle-tranches
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Last modified 17d ago
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Codebase