APIR 0 : D2D collaboration between APWine and Idle (time-sentitive)

Summary

Winelisting event is live for new pool creation for APWine, where 5 protocols will be added to APWine protocol and will join the related liquidity mining program. The snapshot will close in about 7 hours, so this proposal is time-sensitive.

Idle Leagues envision a future where Idle and APWine can benefit from this DAO-2-DAO collaboration, with combined mechanisms of liquidity provision and nested incentives.

To foster the integration of AA_idleDAIYield into the first batch of selected assets, Idle Leagues are offering to commit economic and strategic resources to APWine DAO:

  • 20,000 $IDLE tokens, to let APWine community get ownership of Idle protocol, benefitting from IDLE staking (28% APY) and direct voting power on protocol’s decision (Governance + future gauge mechanism :eyes:);
  • $5000 grant in $IDLE tokens to foster the development APWine Perpetual Yield Tranches.

AA_idleDAIYield needs only 650k APWine votes to make this proposal effective, reaching snapshot’s top5 position within December 21st, 12am UTC.

We trust APWine community sees this opportunity to solidify a D2D partnership with Idle DAO, and wish to see APW token holders increasing their votes before the poll ends!

Motivation

Idle Leagues reached APWine to present our latest product: Perpetual Yield Tranches (PYT).

Idle PYT have been designed to provide diversification of asset allocation into a spectrum of different yields and risks. With Junior Tranche, users leverage funds deposited into Senior class to increase the returns, while Senior Tranche funds are protected by Junior class deposits.

Junior Tranche receives a higher proportion of underlying yield but also takes on extra smart contract and protocol risks. Inversely, the Senior Tranche receives a smaller portion of the generated yield but carries a higher grade of protection against these risks.

Tranches are epoch-less, which brings limitless product interactions: liquidity providers can deposit and withdraw anytime, with no maturity date or locking period.

Tranche tokens are also fully fungible and easily integrable into other projects (as collateral or for on-top use cases).

By listing idleDAI Senior Tranche, APWine would get access to a yield source with built-in protection features, where Junior TVL covers Senior one from a full spectrum of oracle/smart contract risks on:

  • Idle Best-Yield
  • Compound
  • Aave
  • Idle PYT

Tranches have been audited by Consensys Diligence and Certik. The documentation is available here.

Specifications

With IdleDAI Senior Tranche getting selected in the first batch, Idle Leagues propose to empower APWine community to further benefit from that choice and start a long-term collaboration.

The proposal is based on 2 pillars:

  • Allocation of 20,000 $IDLE tokens to APWine DAO, to unlock meta-governance initiatives and give a share of Idle protocol’s ownership. Benefits:
    • Compounding of the ownership, with $IDLE staking. Idle protocol shares 50% of the accrued fees with stakers (doc). With a 4-year lock, the current return is 28% APY.
    • Direct voting power on off-chain and on-chain decisions.
    • Strategic position on future Idle tokenomics, with Idle Leagues planning to launch a gauge mechanism to distribute $IDLE. With APWine PYT in production, APWine can boost its own pools and increase its TVL.
  • $5000 grant in $IDLE tokens to foster the development APWine Perpetual Yield Tranches.
    • Idle launched Request for proposals, with a list of yield sources that can be integrated into PYT. With the development and release of APWine PYT, Idle would be able to stream TVL into APWine, providing a new on-top use case.

Next Steps

The proposal will be automatically executed if AA_idleDAIYield results to be included in the first batch of supported protocols.

Snapshot voters can change their voting preferences anytime, until the snapshot’s ending, at no cost. You can also split your vote for multiple pools at the same time!

At the time of writing, AA_idleDAIYield received 450k APWine votes, and the threshold is equal to 1.1m votes. Only 650k votes are required to reach the top5 position :chart_with_upwards_trend:

Looking forward to making this happen! :partying_face:

2 Likes

I am personally delighted to read this proposal as it is exactly going in the way I see the protocol at this stage. Especially when it’s made by the Idle Finance Team which has been active and supporting APWine for a while. :smiley:
Cheers🥂

3 Likes