Summary:
Idle Finance recently announced their Idle Governance token that will be earned through deposits into their pools along with COMP. Let's look into integrating these strategies into the Rari Stable Pool and the Rari Yield Pool to boost returns!
Background:
Rari's goal is to provide the highest net value possible to our users. We take pride in doing this by acquiring governance tokens and liquidating them for the users' maximum profitability. The Rari protocol can continue achieving higher yield and higher net value by adding Idle as a strategy within two of the pools.
Abstract:
Idle has two different yield generating mechanisms:
Best-Yield
Risk-Adjusted
Comparing the Rari risk assessment protocol to Idle's, I believe that the "Best-Yield" strategy should be integrated into the Rari Yield Pool while the 'risk-adjusted' strategy should be integrated into the Rari Stable Pool. Based off my understanding of the Rari Strategy Assessment Framework that analyzes risk, I would like to see the "Risk-Adjusted" strategy integrated within the Stable Pool and the "Best-Yield" added to the Yield Pool. More information regarding Rari's risk evaluation can be found here: https://www.notion.so/Rari-Strategy-Assessment-Framework-2d1edffcf80f4750973f6e90e97b70a4
Motivation:
Rari should always have the highest yield possible. By incorporating Idle Finance into the Rari Pools, we will be able to take advantage of the yield and token distributions. Current numbers pulled from their website shown below (as of December 7, 2020):
Idle: "Best-Yield" // 3.99% + 6613.26 IDLE/day
Idle: "Risk-Adjusted" // 3.58% + 60.07 IDLE/day
Currently all COMP earned is liquidated and distributed to pool token holders every 3 days. The idea would be to do the same with IDLE unless governance would prefer something different. Would love to hear all thoughts around integrating Idle Finance into two of the Rari pools!
For: Integrate Idle Stablecoin Pools into Stable Pool and Yield Pool to earn IDLE and COMP
Against: Don't integrate Idle
