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mStable GrantsmStable Grantsby0xC5e1569772b2d425Ac9469d39F17341C01e1CF4cston.eth

Idle Perpetual Yield Tranches - Bounty

Voting ended about 4 years agoSucceeded

Bounty Description: Integrate mStable Save as an additional yield source for Idle Perpetual Yield Tranches

The aim of Idle Perpetual Yield Tranches is to pool the capital of users (eg mUSD), deposit it into a lending provider (eg Idle Finance) and split the interest received between 2 classes of users with different risk profiles.

The idea here is to develop a yield tranches product on Idle Finance dedicated platform ( https://beta.idle.finance/#/dashboard/tranches) using mUSD & mStable Save. It would mean creating tranches for mUSD with built-in protection on deposits by holding the Senior class, or leveraged yield exposure with Junior one.

The strategy should allow an IdleCDO to deposit mUSD tokens directly into mStable Save, the imUSD into the vault & stake the MTA rewards in their corresponding rewards contract.

The staked position in mUSD should be tokenized (through the strategy itself or an auxiliary contract) so to be compatible with IdleCDO (which expects to have an underlying token, eg DAI, alongside an interest bearing token associated, eg cDAI). So users will deposit mUSD in the IdleCDO and then those funds will get deposited + staked in mStable vaults through the strategy. The tokenized position will then be sent to the IdleCDO contract which will be the final holder.

All MTA rewards should be sold and the gain should be redeposited in Save so to generate additional yield

Desired Impact: This integration would unlock mUSD deposits into Idle tranches product as well as increase the volume of mUSD routed into Save. More mUSD minted and deposited into Save increases overall Save APY for Savers, provide new use cases for mUSD

Tranches allow users to enjoy optimized DeFi yields with built-in protection on deposits by holding the Senior class, and leveraged yield exposure with Junior one. Idle Perpetual Yield Tranches is an epoch-free model: liquidity providers can now deposit and withdraw anytime, with no maturity date or locking period

Additional Comments: Idle Finance will put up its own bounty for this integration idea soon, it will look very much like this one https://gov.idle.finance/t/grant-idle-perp-yield-tranche-convex-strategy/676

Bounty Amount: 1300 - 6300 MTA Idle offered 500-2000 IDLE, i.e $1500-7500$ for this task.

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Timeline

Nov 09, 2021Proposal created
Nov 09, 2021Proposal vote started
Nov 23, 2021Proposal vote ended
Oct 26, 2023Proposal updated