Prime Staking is here: Stake $IDLE, Save Fees
Following a successful governance process, Idle DAO is thrilled to announce that $IDLE Prime Staking is now officially implemented.
In the wake of months of meticulous brainstorming and extensive discussions focused on enhancing the utility of the $IDLE token, Idle DAO unanimously endorsed the IDLE staking v2 proposal on October 26th.
Starting from Yield Tranches on the Ethereum network (excluded the ones based on Fasanara), the new mechanism introduces exclusive advantages for liquidity providers who hold stkIDLE, and can now be seamlessly accessed through the redesigned staking page in the Idle dashboard. The initial phase launches with a maximum deposit cap of $5,000,000 per wallet.
A revamped utility framework to bridge the gap between $IDLE holders and Liquidity Providers
The new Prime Staking feature consists in a tiered discount system that enables liquidity providers to enjoy significant discounts on Yield Tranches’ performance fees, unlocking up to a 50% reduction based on the amount of $IDLE tokens staked and the lock duration.
The table below shows the discount tiers introduced, considering the 15% base performance fee:
The displayed data assumes that $IDLE tokens are staked for the longest available duration (four years). It’s important to note that the amount of stkIDLE decreases linearly from the lockup date to the end date. This means that choosing shorter staking periods will affect the discount applied, such as the first tier not being applicable for locking periods of less than two years.
Through the new staking interface, users will be able to easily increase the amount of tokens staked or lock duration at any time.
This strategic initiative offers a twofold advantage. Liquidity providers, crucial in driving the protocol’s revenue, can boost their net APYs by aligning with the DAO’s interests through holding stkIDLE. Simultaneously, $IDLE token holders experience an enriched utility for their tokens within the Idle ecosystem, potentially sparking increased demand and a significant rise in locked tokens.
This convergence of efforts aligns the goals of diverse stakeholders in the long term and holds the power to nurture a more dynamic and resilient governance framework.
What’s next
After undergoing an initial phase on the Ethereum network’s Yield Tranches (with the exception of those based on Fasanara — as part of the strategic agreement with the DAO), the program will be refined and subsequently extended to encompass Best Yield vaults and the other networks where the Idle product suite is actively deployed.
$IDLE Prime Staking stands as the tangible outcome of months of dedicated development and collaborative efforts. By providing a space where liquidity providers and token holders converge, Idle DAO’s mission is to nurture a thriving ecosystem, forging a stronger sense of unity within the community and unlocking new opportunities for all stakeholders.
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:
