Idle deployment on Polygon zkEVM

The following is an extract of the proposal posted on the Idle governance forum.

Summary

This proposal defines multiple activities that aim to build momentum in zkEVM, including the native launch of a new Idle primitive on this network.

This document points out how Yield Tranches create new risk-adjusted opportunities for LPs, and their combination in a Balancer Boosted pool allows protocols to open new gateways to onboard liquidity. Lastly, Harvesting Vaults remove farming inefficiencies and optimize AMM LPing.

Proposed activities are planned to be completed in less than four months.

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Proposal

[...] There are two main development working areas, each with its own scope and tech specifications. Considering how fast market needs and trends evolve in crypto, Idle DAO will have the flexibility to dynamically rank working areas according to market priorities and ecosystem updates.

1. Activities related to Yield Tranches

• identify an underlying yield source compatible with Yield Tranches infrastructure
• integrate targeted protocol into Yield Tranches
• deploy Tranches infrastructure and integrated protocol in zkEVM
• launch zkEVM support on Idle website and integrate released Yield Tranches

Activities related to Ecosystem Development can amplify the outcome, such as the deployment of Balancer Boosted pool that uses Yield Tranches as underlying yield source. Similarly, the onboarding of high-yield protocols like Clearpool would create the highest grade of financial sustainability without external incentives.

2. Activities related to Harvesting Vault, a new zkEVM-native primitive

• identify a yield source compatible with Harvesting Vaults
• develop, peer review, and test Harvesting Vaults factory
• integrate targeted protocol into Harvesting Vault
• integrate released Harvesting Vaults into Idle website

All activities are expected to be completed in less than four months since the parties agree on this plan.

These product releases are reinforced by business and communication activities, such as:

• focus marketing and social media activities on promoting zkEVM as the reference L2 chosen by Idle;
• engage with Idle ecosystem partners to foster protocol/liquidity deployments and design new integrations;
• engage with institutional investors to bootstrap and grow zkEVM liquidity; join AMAs/Spaces hosted by Polygon or zkEVM partners;

The budget request is 125k $MATIC, with no transfer required from Polygon team because Idle DAO already controls these funds. The remaining funds will be used to maximize the traction of released products, and their allocation will be mutually agreed between the Idle and Polygon teams.

When activities assigned to a working area are completed, 50% of the budget request is unlocked and assigned to Idle DAO.