IDLE distribution (via LPs Fund) can be broken down into three different programs:
Liquidity Mining: this program will last 2 years and is used to reward liquidity providers depending on the amount of funds deposited and the utility generated by the pool (APY of the pool); It will distribute 18% of the total supply on a per-block basis across all Idle pools.
Liquidity Bootstrap: this program is based on the liquidity mining program and it applies an X4 multiplier on the basic reward per block amount distributed for the first 30 days in order to bootstrap the deposit of capital into the protocol. 3% of the total supply is dedicated to this program.
Long-Term Rewards: this program is meant to incentivize capital to stay in the pool for months to years vs days to months. 20% of the token supply is allocated to these long term rewards, which will get progressively higher over time (quarterly, up to 2 years, block by block basis). The mechanism for this is staking the tokenized balances (idleUSDC, idleDAI, etc.), meaning users can still exit at any time, they just stop earning IDLE at the increased levels (The long term distribution program won't start right at governance launch, but 20% of the total supply have already been reserved and sent to the
LongLPFund 0x107A369bc066c77FF061c7d2420618a6ce31B925 which is managed by the governance)
The distribution for the Liquidity Mining program and the Liquidity Bootstrap program is managed by the
IdleControllercontract, which calculates the utility generate by each idle pool (idleDAI, idleUSDC, ...) and split the IDLE reward per block proportionally between all pools. For calculating the utility generated by each pool the IdleController uses a
PriceOracle which reads data such as WBTC or COMP price (in USD) and uses it to calculate the correct share for each pool. To update the distribution speeds for each pool according to new market data the public method
refreshIdleSpeeds should be called from time to time. Funds for the Liquidity Mining and the Liquidity Boostrap have been sent to a
Reservoir contract which in turn progressively unlock funds for the
IdleController. In order to transfer unlocked funds from the
Reservoir to the
IdleController the Reserve contract should be poked by calling the
The governance is also responsible for managing the Ecosystem Fund 0xb0aA1f98523Ec15932dd5fAAC5d86e57115571C7 which represent the 15% of the total supply.
40% of the total supply is reserved for Team (current and future) and Investors with different unlock schedules:
Investors: 25% unlocked after 6 months, 75% unlocked linearly for the next 18 months (total 2 years)
Team + Future Team: 33.33% unlocked after 1 year, 66.67% unlocked linearly for the next 24 months (total 3 years)
These unlock schedules are enforced through the following smart contracts:
Team + future team
The remaining 4% of the total supply has been reserved at launch to Early LPs through the Early Rewards contract 0xa1F71ED24ABA6c8Da8ca8C046bBc9804625d88Fc. Early Rewards not claimed 90 days after launch (26th November 2020) will be automatically transferred to the Ecosystem Fund.
The above $IDLE emission schedule does not take account of Ecosystem Fund and LongTerm LPs Program, whose will be deployed via community vote)