Smell that? That’s the smell of fresh smart contracts being deployed to Ethereum. With our Pre-Launch having concluded, the Liquis protocol is going live. Keep an eye on our Twitter for updates on when you can start earning boosted Bunni emissions. 🐰🌊
Until then, you can learn more about our latest launch partner: Idle DAO!
Idle DAO maintains open source protocols that aim to provided DeFi with sophisticated solutions for managing deposit risk and yield optimization. The Idle product suite is comprised of a diverse set of deposit strategies integrated with leading DeFi protocols, all of which are characterized by single-sided exposure, no lockups, and auto-compounding returns.
Idle has two core products:
Yield Tranches (YTs): Segmented deposits into integrated DeFi markets between senior and junior participants offering either coverage or boosted yields.
Best Yield (BY) Vaults: Set-and-forget strategies that pool deposits in order to automatically route across underlying markets for the highest yield available.
Yield tranches allow Idle users to split any integrated yield source into two risk-adjusted profiles, senior and junior. Senior YT depositors forgo a fraction of their earned yield in exchange for prioritized withdrawal rights, covering their funds in the event of a hack or default. Junior YT depositors are both the recipients of this forgone yield and the providers of the deposit coverage, granting them boosted yields as long as there is no default scenario. The amount of yield forgone by the senior side is determined by the Adaptive Yield Split mechanism as a function of the ratio between senior and junior deposits.
Idle has added a further automated layer on top of its yield tranches in the form of the Best Yield application. With it, users can deploy their capital into Best Yield strategies that regularly rebalance deposits across either compatible junior or senior capital pools.
Junior BY Vaults: Deposits are regularly redistributed across integrated Junior YT markets in order to hone in on the highest rates offered within a known risk band.
Senior BY Vaults: Deposits are regularly redistributed across both Senior YTs and spot markets in order to minimize the amount of yield paid for coverage.
The Idle DAO is governed by holders of the IDLE token. Governance can control various protocol parameters and the use of the DAO treasury.
Idle DAO is an existing user of both Bunni and its parent project, Timeless Finance, having set up ranges on Uniswap v3 pools for certain yield tranches. It has expressed interest in expanding IDLE liquidity onto Uniswap v3 as well as bootstrapping secondary liquidity for its issued assets. Liquis welcomes their $10,000 commitment to subsidizing vlLIQ holders over the coming months.
You can follow and learn more about Idle DAO via the following resources:
The Idle dApp can be found here.
Due to the timing of the Bunni voting cycle, it is anticipated that the first Liquis epoch will be a test run insofar as there will be less than 48 hours for Pre-Launch depositors to lock their positions; LIQ vesting to begin and for holders to lock in governance; and for vlLIQ holders to vote on gauges. Further guidance will be published on these various moving parts shortly.