2023 in Review: Unfolding a Year of Dynamic Evolution
Picture tumultuous seas, a relentless storm with unpredictable winds, and the alluring promise of a coveted land, where the perpetual need for skillful adjustment can transform every challenge into a new opportunity.
No, this is not the start of a new novel about intrepid sailors battling the high seas (though, let’s be honest, it might just become a bestseller). Instead, it’s a snapshot of the everyday reality for those navigating the crypto world, especially those immersed in DeFi.
Over the past twelve months, the Web3 space has seen its fair share of drama and twists, marking another exhilarating year of development and progress. From the successful Shapella upgrade of Ethereum to the steady rise of RWAs, AI, and LSTs, along with numerous exciting advancements in DeFi and infrastructure, the landscape has been painted with vibrancy. And this is particularly true at Idle, where the heartbeat of building and yields has never ceased.
As 2023 unfolds, it’s the perfect time for a milestone recap. So, all aboard!
The Building Blocks Behind Idle’s Growth
Amid numerous improvements to the Idle dashboard, the multichain expansion of Yield Tranches, and a continuously growing array of yield sources and integrators, 2023 has undoubtedly marked a distinguished chapter for Idle DAO, propelling our mission to improve DeFi resilience and empower liquidity providers to build their very own yield portfolio.
A Nurturing Community
This year’s accomplishments owe much to the active participation of our community and DAO, steering the development of our protocol on numerous fronts. Eight IIPs have been successfully implemented, alongside several off-chain proposals voted upon by IDLE and stkIDLE token holders. Among these:
- The formalization of a strategic partnership with Fasanara Digital, as one of the initiatives to expedite Idle DAO growth through an enriched partner ecosystem and diversified treasury management.
- The AMM Liquidity Improvement proposal, aimed at enhancing the existing allocation of protocol-owned liquidity, ultimately resulted in the implementation of the 8020 IDLE — USDC pool on Balancer;
- The introduction of IDLE Prime Staking, a revamped utility framework that allows stkIDLE holders to unlock up to a 50% performance fee discount as liquidity providers in Yield Tranches.
A Revamped and Diversified Product Suite
In 2023, Idle’s evolution surged forward at an unprecedented pace, witnessing substantial product developments and an enhanced user experience thanks to a revamped UI.
February marked the debut of the next-gen of Best Yield vaults, introducing risk-adjusted features to Idle DAO’s flagship product. The addition of Junior BY vaults — aggregating multiple Junior YTs — and the integration of Senior YTs alongside existing sources Aave and Compound for Senior BY vaults unveiled a new frontier for the Idle product suite, presenting liquidity providers with expanded opportunities to optimize capital efficiency based on their goals and needs.
Our offering expanded to more markets, with approximately $34M TVL in Best Yield vaults and Yield Tranches, the latter counting now fifteen underlying yield sources. Among the most recent additions are Morpho’s peer-to-peer layer on Aave, Clearpool’s institutional lending marketplace, and Instadapp’s leveraged strategies for stETH.
Moreover, 2023 ushered in Idle’s expansion into the multichain arena. The journey kicked off in August with the deployment of Clearpool-based Yield Tranches on Polygon zkEVM, followed by integration into the Optimism ecosystem in October. This strategic move seamlessly combines enhanced unsecured institutional liquidity with superior scalability and efficiency. The excitement is further heightened by ongoing incentive campaigns, where auto-harvested MATIC rewards flow into Portofino’s YTs on Polygon zkEVM. Meanwhile, a dual OP reward campaign graces YTs on Optimism, building on the momentum created by the substantial 150,000 OP grant secured by both Idle and Clearpool.
An Expanding Network of Integrators
Concluding this fruitful year, Idle celebrated numerous collaborations, seamlessly integrating our strategies into prominent protocols like ShapeShift, Swissborg, Credora, Enso, Timeless, Liquis, VaultCraft, and Amulet.
Our Integrators Program emerged as a cornerstone, playing a pivotal role in nurturing the Idle ecosystem and extending risk-adjusted yields to DeFi users across diverse platforms. Amidst the collaborative fervor, the active involvement of Idle Leagues in real-life events emerged as a driving force, helping us establish meaningful connections that not only enriched the community but also fortified the ecosystem’s overall resilience.
And, not to forget, it was an absolute blast!
We’re stoked to team up with so many awesome projects, shaping together a better financial system, trustless, open, and decentralized. Big thanks to all partners who’ve jumped on this wild ride with us, and shoutout to the many more on the horizon!
The Road Ahead: A Glimpse into 2024
Now that we’ve taken a trip down memory lane, it’s time to set sail toward the thrilling possibilities that await us in 2024.
At Idle, we firmly believe in the inevitable shift of global debt activity on-chain. As this transition unfolds, users will find it essential to manage their exposure to the on-chain financial landscape. Our mission is to build the marketplace to empower risk diversification for the world’s on-chain lending and borrowing activities, providing users with the tools to customize, leverage, and hedge their yield portfolios.
Peering into 2024, the focus remains on innovation, with preconditions already set for another memorable year. Our product suite is gearing up to expand with even more diversified yield sources, introducing new institutional credit markets. Here, Yield Tranches will play a pivotal role, facilitating lenders in bringing off-chain deals onto on-chain risk-diversified pools, while enabling borrowers to operate with broader liquidity and flexible terms. Additional RWA applications, such as corporate bonds, are on the horizon, and much more. And, without giving away too much, brace yourselves for a revolutionary form of Yield Tranches. This game-changer will grant users, partners, and integrators unprecedented control over their yield.
Thrilling times lie ahead, and we can’t wait to continue this exciting course together!
Wishing you all a fantastic end to 2023 and the very best for 2024. May your bags be heavy and your hearts light.
About Idle DAO
Idle DAO is a decentralized organization that builds yield automation infrastructure for DeFi. From brand new protocols to institutional and DAOs, businesses of every size use Idle protocol to optimize capital efficiency and manage their treasuries.
Everyone deserves the best for their idle funds in terms of returns and risks. Over the past four years, Idle has rolled out the features and services, defining and shaping the yield aggregation and risk tranching space. To learn more about Idle’s strategies:
