[IIP-30] Assets BY delisting, BY yield sources update, Governor update

The IIP-30 considers three proposals already discussed and presented in the IIP-29. The IIP-29 didn’t reach the quorum to be executed on-chain.

Authors

Treasury League and Development League

Summary

This proposal focus on three initiatives:

1. Delist RAI, SUSD, TUSD and FEI from the Best Yield strategy and from the IDLE liquidity mining distribution.
2. Update the yield sources of the Best Yield strategy: remove the Senior Clearpool USDC PYTs and the Senior Clearpool DAI PYTs from the idleUSDC BY and idleDAI BY respectively.
3. Update the Governor voting delay following the Immenufy bug bounty.

Rationale

1. Delist RAI, SUSD, TUSD and FEI from the BY strategy and from the IDLE LM distribution

For a comprehensive analysis of the initiative, we suggest visiting the related governance forum posts

• Strategies revamp: unused assets wind down → Forum post
• Strategies revamp: unused assets wind down II → Forum post

Both BY and PYTs strategies require a good deal of ongoing bandwidth to ensure users have a quality experience. Idle Leagues have been monitoring the performances of the strategies (as reported in the M2-22 report), and due to low profit margins or other externalities (eg FEI dissolution) we decided to keep in the main dashboard only the strategies with the most traction and efficiency.

Following the recent decision of the Aave’s community (see Aave’s AIP-121)

[…]

We plan to update the assets listed in the Idle Best Yield accordingly, i.e. remove sUSD and RAI.

In addition, we plan to delist TUSD tokens. These three assets have never reached a sufficient level of traction to justify the rebalance costs incurred by Idle DAO’s smart contracts.

This initiative aligns with the previous proposal to delist FEI and other PYTs tokens.

[…]

These four tokens won’t be anymore listed in the main UI under Best Yield, and deposits will no longer be available.

We will remove accordingly these tokens from the list of eligible assets receiving the IDLE incentives as part of the Liquidity Mining program distributed to the Best Yield strategies.

2. Update the yield sources of the Best Yield strategy

Through IIP-26 and IIP-27, Idle DAO approved the Clearpool Senior PYTs as new yield sources, in addition to Aave and Compound, for the BY’s USDC and DAI markets

IIP-26 actions:

• Add Senior tranche of cpWIN-USDC PYT as a new yield source for idleUSDC Best Yield strategy

Together with the above action, IIP-26 will set a new wrapper contract for the Clearpool USDC pool: 0xdb1b149177b5819cf467ad6519cf55416789300a

IIP-27 actions:

• Add Senior tranche of cpFOL-DAI PYT as a new yield source for idleDAI Best Yield strategy

[…]

Together with the above action, IIP-27 will set a new wrapper contract for the Clearpool Folkvang DAI pool: 0x67e78ED1cC4732816816A62F2e99CDC5CfaAc06E

Following the FTX collapse, both borrowers, i.e. Wintermute for the USDC market and Folkvang for the DAI one, fully repaid their loans to reduce their market exposure (i.e. utilization rate = 0%).

Removing these two markets from the Best Yield strategies yield source base will reduce computational complexity and gas costs in managing the allocation, harvesting and movement of funds. These markets could be later added again to the Idle Best Yield if the utilization rate will increase.

3. Update the Governor voting delay following the Immenufy bug bounty.

A white hacker discovered a very low vulnerability on a parameter of the GovernorBravo contract and reported it to Immunefy. We will then update one parameter to increase the Governor voting delay, after a proposal is launched, from 1 to 100 blocks.

Specifications

The code for the IIP-29 can be found on GitHub here and consists of seven actions

IIP-29 actions:

• 4 actions to delist four idleTokens from IDLE BY distribution: RAI, SUSD, TUSD and FEI
• 1 action to remove cpWIN from idleUSDC BY
• 1 action to remove cpFOL from idleDAI BY
• 1 action to increase the Governor voting delay from 1 to 100 blocks (Immunefy bounty)

The following BY tokens will be removed from the IdleController:

• idleRAI - 0x5C960a3DCC01BE8a0f49c02A8ceBCAcf5D07fABe
• idlesUSD - 0xF52CDcD458bf455aeD77751743180eC4A595Fd3F
• idletUSD - 0xc278041fDD8249FE4c1Aad1193876857EEa3D68c
• idleFEI - 0xb2d5CB72A621493fe83C6885E4A776279be595bC [/quote]

Next Step

The temperature checks for the idleTokens removal have already been voted. Consequently, we won’t open a new temperature check to vote on the GovernorBravo fix and the Clearpool markets removal. The on-chain voting pools will be opened right after the publication of this post.