FIP-44: PCV Allocation into Idle Finance

Forum Discussion: https://tribe.fei.money/t/fip-44-idle-protocol-as-yield-source-of-pcv-allocations/3622

Summary

Allocate $20m/$40m DAI, currently deployed in Compound, into Idle Best-Yield strategy. The allocation will represent 1.7% or 3.4% of Fei Treasury.

With this proposal, PCV will increase revenues without changing the risk profile and Fei will consolidate the relationship with the Idle community.

Motivation

Idle DAO initiated the collaboration with Fei by developing idleFEI Best-Yield strategy, which optimizes Fei returns across the market. To foster the onboarding of Fei into the Idle family, Idle DAO activated $IDLE liquidity mining on idleFEI, giving protocol ownership to Fei LPs.

This proposal introduces how Idle could also become a safe place to host part of the liquidity held in PCV, improving economic returns and getting a voting position in Idle Governance.

Launched in 2019, Idle proved to be secure and resilient over the years, with particular attention to security procedures, scalable infrastructure, and developing a friendly environment for risk-averse liquidity providers.

Security Due Diligence Days of activity: 820 (2+ years) Overall protocol audits: 6 Bug Bounty Program: $500k Nexus Mutual coverage liquidity: $40m ($DAI and $USDT) Governance: Compound Governor Alpha TVL: $125m Hacks: 0 Losses: $0

Economic analysis 7-month average APY for DAI: 11.32% The table to compare APYs is reported in the Forum Discussion.

Voting Rules

Voting will last 2 days.

Please remember that snapshot votes can be changed, but not withdrawn until the end of the voting period.

The 3 voting options are:

• Allocate $20m in Idle
• Allocate $40m in Idle
• Do Nothing