Idle DAO
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Idle DAO

Pods Protocol integrates idleTokens as Smart Collateral

Pods, a decentralized non-custodial options protocol, launches IdleTokens on Polygon and enables users to generate interest while depositing collateral inside an option contract.

Pods is an on-chain Options Protocol that aims to bootstrap options markets for any ERC20 using an algorithmic pricing and specific AMM model. Users can create options and trade them through an options AMM on the Ethereum and Polygon chains.

With Idle integration on the Polygon network, users can deposit idleUSDC as smart collateral and write put options on Pods. Pods launched MATIC:IdleUSDC Put (accessible here) with strike $1.90 expiring on December 21st.

Pods will be awarded with:

  • $2.5k in $IDLE tokens for the production release of the option as a grant for development;
  • A recurrent weekly bonus up to $650k via B2B Polygon program, proportional to the Option pool TVL.

Pods allows for hedging, exposure, and yield generation strategies. Users can consider using Pods if:

  • They hold crypto and would like to hedge against price volatility
  • They want exposure to an asset at a specific price by selling options
  • They are looking for yield-generating opportunities while providing liquidity to an AMM

Users can hedge their digital asset exposure by purchasing protective Put Options, or they can sell Put Options to get exposure to an underlying asset at a specific price level and gain a premium for that.

By providing liquidity to Pods AMM, users can earn through different streams:

  • Lending interest from Options with idleTokens as collateral
  • AMM trading dynamic fees (subjected to trading volume)
  • AMM’s returns, as LPs could be subject to impermanent loss or impermanent gain.

Pods Protocol v1 was audited by Quantstamp and Solidified.

Present and future of Pods integration

Pods is the first integrator to unlock the collateral use-case of idleTokens, showcasing the full potential of composability.

After depositing USDC into Idle protocol, users can deploy the tokenized position (idleUSDC) into Pods and further profit from liquidity provision on that protocol.

idleUSDC represents the first of a variety of assets that can potentially be used as smart collateral in Pods, with idleDAI and idleWETH next in the pipeline to increase the capital efficiency of the DAI/WETH deposits.

This is a short-term option, showcasing the integration with Idle protocol. Pods is currently working on an adapter of exchange rate tokens, a mechanism that will allow the creation of options with longer expiry using IdleTokens.

Stay tuned for more Idle-based integrations! 🚀

Idle DAO is a decentralized organization that builds financial products for Web3. We believe that everyone deserves the best for their idle funds, both in terms of returns and risks.

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