IDLE Staking Launch
IDLE DAO released Idle staking that empowers token holders and Idle pools’ participants to stake their $IDLE, increasing their weight on Governance.
The Idle Leagues worked around the clock to add more innovative token use cases, and today we are happy to unveil $IDLE staking.
IDLE is now a governance token with a value accrual mechanism. Users that lock $IDLE for a flexible period (up to 4 years) will get access to a fee-sharing stream.
Governance voted to distribute 50% of the protocol’s revenue streams to stakers in the form of $IDLE, increasing protocol ownership and Governance involvement of $stkIDLE holders.
All you need to know about $IDLE staking
During the last months, the community agreed upon implementing the Curve model with different threads in the governance forum. This model adds valuable utility to the $IDLE token, aligning stalkers’ returns with protocol growth, and designing a new module that goes hands-in-hands with the liquidity mining program.
Indeed, LPs can maximize their long-term commitment to Idle protocol and get additional rewards by depositing $IDLE accrued via LM.
🔹What’s the difference between $IDLE staking and LP staking? LP stakingenables liquidity providers to deposit $IDLE and $ETH in the SushiSwap pool and receive $IDLE rewards. The Governance voted for an incentivization program to foster liquidity provision and allocated 180k $IDLE over a 6-month period. The program is based on the Ampleforth geyser model and the multiplier is time-weighted.
While LP stakers are subject to impermanent loss, that risk does not affect $IDLE stakers. With this new initiative, users can join the fee-sharing by depositing $IDLE in a staking contract.
🔹How long can holders stake $IDLE? Users can decide the locking period when staking $IDLE. The UI offers 4 options: 1 week, 1 month, 1 year, and 4 years.
It’s always possible to increase the locking period, even with the tokens already locked, while it’s not possible to cancel or reduce the lock once broadcasted on-chain.
🔹How does the multiplier work? Stakers deposit $IDLE and receive $stkIDLE in proportion to the locking time and staked amount.
Users would achieve the maximum multiplier (where 1 $IDLE = 1 $stkIDLE) with a 4-year locking period. Lower locking timeframes would translate into a reduced $stkIDLE amount: e.g. 1 $IDLE would be worth 0.5 $stkIDLE with a 2-year lock, and 0.25 $stkIDLE with 1-year lock.
$stkIDLE owners receive a proportional share of the fees accrued by the protocol.
🔹Do I have voting rights and can I vote for on-chain IIPs? The $IDLE staking contracts do not allow you to directly vote on-chain. To enable the voting feature, the current option would be to have a community multisig that receives the $IDLE voting power delegation for the staked assets.
Stakers can signal their preference on IIP proposals through a snapshot vote, and the multisig will then broadcast on-chain their decision.
The off-chain individual voting power will be proportional to the owned stkIDLE, and the multisig will report the using the full voting weight of the staked $IDLE.
What is Idle?
Idle is a decentralized rebalancing protocol that allows users to automatically and algorithmically manage their digital asset allocation among different third-party DeFi protocols. You can choose to maximize your interest rate returns through MaxYield strategy or minimize your risk exposure through RiskAdjusted allocation strategy.
📰 INFO:
https://idlefinance.medium.com/idle-staking-fee-sharing-for-long-term-holders-eb964d9405fe
