[Temperature Check] - LP Staking phase II

Summary

This proposal aims to introduce 3 phases that could empower Idle Governance to foster liquidity provision and enhance swap volumes, with Phase 1 being the main object of this Temperature Check.

This poll would gauge community sentiment on Phase 1, which consists of $120k UNI v3 liquidity deployment on Ethereum and the approval of a 20k $IDLE LP staking program on Polygon.

Motivation

Key facts on Ethereum network The Treasury League is actively working on getting Idle listed as a collateral asset on different lending protocols. $IDLE recently got approved to be added to the Fuse pool and a current blocker is the required price oracle (TWAP) for the ETH/IDLE pair. As we do not have a Chainlink price feed yet, the Fuse team would be more comfortable with a UNI v3 TWAP instead of a Sushi one, but the current UNI v3 pool is illiquid. Fuse requires to have at least $120k liquidity in UNI v3 directly owned by the Governance, with guarantees that those funds would not be removed.

Key facts on Polygon network With the approval of the $700k program with Polygon, Idle Leagues are working on the deployment phase. The launch could get visibility within the Polygon community, but users would be forced to use ETH markets if they would like to become token holders. A Polygon pool would enable community members to swap tokens with cheap tx fees, increasing the volumes and attracting prospective token holders blocked by ETH expensive tx costs. On the other side, Governance functions would be available only on Ethereum network.

A detailed description of the motivations is available here.

Details

The Treasury League proposes the following implementation phases:

Ethereum side Deployment of $120k liquidity in UNI v3 (IDLE/ETH pool). Ecosystem Fund and SushiCollector (already managed by Treasury League) could fund the 50-50 pool with 10,000 $IDLE and $60k from the $SUSHI reserve. The operation requires 1 on-chain action, with funds deployed via Treasury League multisig.

Polygon side Design of a Polygon LP staking program, with the aim of attracting $1m in liquidity. According to this simulation tool provided by Mechanism Capital, that liquidity would allow $10k token swap with 2% slippage. In combination with cheap tx fees, users can get easy access to $IDLE. The expected budget allocated to this initiative would be 20k IDLE for a 3-month program.

Voting Options

Please cast your vote on one of the following options: FOR: Approve the proposal, initiate fund transfer and LP staking operations AGAINST: Vote against the proposal DISCUSS MORE: Discuss more the proposal