Idle

Yield Aggregator

Idle is a protocol building an ecosystem of yield-generating products including yield optimization and risk-tranching strategies.

Risk Rating
Best
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Idle offers users unique ways to maximize yield through risk tranching, rebalancing, and yield automation strategies.
What we like less
There are still a limited number of high TVL pools available through risk tranching. Rewards harvesting occurs either manually or when the underlying rewards exceed 500 Curve LP tokens, which can be multiple weeks for pools with low TVL
What it means for you
Offers you a great way to earn yield with built-in protection through risk tranching between junior and senior pools.

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Information
Exploit/Hacks
None
Info
  • Website
  • Token: IDLE
  • Tags: Yield Aggregator
Key Metrics
  • TVL: $24.3M (Rank #113)
  • TVL Ranking by Yield Aggregator: #7
  • Blockchain: Ethereum, Optimism, Polygon zkEVM, Polygon
  • Chain TVL
    • Ethereum: $12.72M
    • Optimism: $11.36M
    • Polygon zkEVM: $220.67K
    • Polygon: $34.94K
Risk Assessment
Best
Protocol Code Quality
  • Code reviewed by several experienced auditors including Quantstamp and ConsenSys
  • Public team promotes accountability
  • No documented protocol hacks since launch
Protocol Maturity
  • Core protocol launched in 2020; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 10% by total value locked reduces risk
  • Requires members of a DAO to vote on-chain for approving contract upgrades
  • Timelock is at least 48hrs, which provides users with sufficient time to exit if any malicious upgrades are approved
  • Low voting power concentration reduces risk
Protocol Design
  • No death spiral concerns
  • This protocol is susceptible to risks related to yield optimizers which deploy custom strategies to automatically manage user funds
Things to know about Idle

How Idle works

Idle is a decentralized yield generation protocol currently composed of two core products: Best Yield and Perpetual Yield Tranches (PYT). The Best Yield product is a lending aggregator that actively monitors yield across third-party platforms in order to constantly rebalance capital and earn the highest yield possible. User funds are pooled together in a smart contract (one for each supported asset) in order to minimize gas fees and automatically deposited into an integrated lending partner. Users who deposit funds receive idleTokens in return that represent their underlying assets plus accrued interest. PYT is a product that separates risk into two tranches: senior and junior. The senior tranche offers users built-in coverage that is provided by the junior pool. Each pool consists of yield-bearing tokens with the pool's net asset value (NAV) expected to increase over time. Any decrease in the NAV triggers an emergency shutdown to protect the senior pool. The senior pool has a first lien on the underlying assets, which means they are first to be repaid in case of default from any hacks or loss of funds. The junior tranche has a second lien on the underlying assets (or none in case of fund losses), but receives a higher leveraged yield in return. The junior pool receives a higher share of yield by design as it is compensated (by the senior tranche) for taking on higher risk. PYT leverages an adaptive yield split to calculate the yield between the senior and junior pools. This dynamic yield works such that the senior tranche receives most of the underlying yield when liquidity is low on the junior side or receives a guaranteed minimum portion of the underlying yield when liquidity is high on the junior side. The junior tranche receives a leveraged yield no matter when the amount of deposited liquidity is for the senior side.

How Idle makes money

Idle charges a 10% performance fee on its Best Yield strategies that are earned every time a user withdraws funds from a strategy. All accrued fees are distributed to the FeeTreasury contract which is governed by IDLE holders. For PYT strategies, the platform charges a 10-15% performance fee that is deducted every time a PYT auto-compounds accrued rewards. All accrued fees are currently distributed to the protocol treasury, which is governed by a team multisig.

How you make money on Idle

You earn yield by depositing your assets into either the Best Yield or PYT strategies. You can also stake IDLE (stkIDLE) to have access to buybacks distribution and boosted yield.

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Idle Pools
Idle USD Yield Tranches (Junior)
14.5%
Yield
$2M
TVL
Risk
D
Protocol
Idle
Chain
Ethereum
Idle USD Yield
9.8%
Yield
$801K
TVL
Risk
D
Protocol
Idle
Chain
Ethereum
Idle USD Yield Tranches (Junior)
17.5%
Yield
$709K
TVL
Risk
D
Protocol
Idle
Chain
Ethereum
Idle ETH Perpetual Yield Tranches (Senior)
2.4%
Yield
$438K
TVL
Risk
A
Protocol
Idle
Chain
Ethereum
Idle ETH Perpetual Yield Tranches (Junior)
3.8%
Yield
$331K
TVL
Risk
B
Protocol
Idle
Chain
Ethereum
Idle USD Yield Tranches (Junior)
16.5%
Yield
$190K
TVL
Risk
D
Protocol
Idle
Chain
Ethereum
Idle USD Yield Tranches (Senior)
13.2%
Yield
$97K
TVL
Risk
C
Protocol
Idle
Chain
Ethereum
Idle MATIC Perpetual Yield Tranches (Senior)
3.8%
Yield
$67K
TVL
Risk
A
Protocol
Idle
Chain
Ethereum

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