Explain @idlefinance's cutting-edge project that manages yields automatically:

✅ Powerful sourced yields
✅ Currently offers a maximum stable deposit rate of 24% on the OP mainnet
✅ Provides principal protection coverage

#idle #Optimism #idlefinance

High and diverse yields can be risky without a source.

However, these yields come from a secure source, and nanominds view it as highly safe, hence I'm writing this for everyone to read.

Explaining the Concept of Idle Finance

The critical concept of Idle Finance involves depositing funds into other protocols and managing them automatically. It has support across multiple chains, including Polygon, ETH mainnet, and OP mainnet.

By dividing the funds into junior tranches and senior tranches:

• Senior tranches are for individuals who prefer low risk and seek principal protection coverage.

• Junior tranches cater to those willing to take on more risk, receiving yields in exchange for the senior tranches' protection coverage.

Idle Finance automatically adjusts the yield sent to these two groups.

As observed, the senior tranche offers 11.78%, while the junior tranche offers 24.34%.

Click through to see that if we choose Senior, every $1 receives protection from $23.57 in Junior funds. This protection covers against hacks and other incidents, yielding 11.78%, slightly less than directly depositing into Clearpool.

On the other hand, Junior bears slightly more risk, akin to Clearpool. However, in case of issues, Seniors get their money back first. The remaining funds are divided among Juniors, compensating for the increased risk from the Senior side with yields.

The covered risks vary significantly, encompassing smart contract risk, price feed issues, slashing, collateral, and others. From what I can gather, it covers nearly everything except for de-peg risk and impermanent loss. You can check the details in the reference.

Where yield are from - Explained.

Today, I'm focusing on the Clearpool pool (referred to as tranch here) on the OP mainnet, which yields 24%, and I understand its source.

Meanwhile, the Dapp that deposits, like Clearpool, has a base of 8.92%, and they've received a 🔴 5% OP Grant.

Not just Clearpool, but ✅💰 Idle Finance also received the OP Grant, boosting their yield as well.

This means that depositing in Idle recently literally getting a double bounce from the OP grant, making it especially intriguing.

It's pushed the APY even higher, leading us to see it reach 24%.

When you hover the mouse over the APY, it indicates which type of APY it is:

• Base APY comes from the Dapp where your tranches deposited, like Clearpool.

• Reward APY for today is a bonus from IdleFinance. E.g. the OP Grant.

• Harvest APY converts the OP reward from Clearpool into USDT/USDC.

Nanobro advises focusing only on Dapps deemed reasonably safe enough to invest in independently. However, always remember #NFA (No Financial Advice) and #DYOR (Do Your Own Research) as essential principles to abide by.

That's all for now. This is what Nano gathered from reading about OP grants and experimenting with various Dapps, sharing it with you. 😘

You will understand more about Idle finance,Clearpool, and their security here.
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