# \[IIP-2\] - Add a Smart Treasury to IDLE

**URL:** <https://gov.pareto.credit/t/iip-2-add-a-smart-treasury-to-idle/211>\
**Category:** ⛓ IIPs\
**Created:** [January 27, 2021, 1:13am UTC](https://gov.pareto.credit/t/iip-2-add-a-smart-treasury-to-idle/211 "2021-01-27T01:13:16Z")\
**Posts on this page:** 20\
**Page:** 1

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**Author:** ![8bitporkchop](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.pareto.credit/8bitporkchop/32/24_2.png) [@8bitporkchop](https://gov.pareto.credit/u/8bitporkchop)\
**Post date:** [January 27, 2021, 1:13am UTC](https://gov.pareto.credit/t/iip-2-add-a-smart-treasury-to-idle/211/1 "2021-01-27T01:13:16Z")

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**IIP 2 Implement a smart treasury for the IDLE protocol**

- **Consensus Check Vote**  
[Snapshot link](https://snapshot.page/#/idlefinance.eth/proposal/QmNvS7hSgY6uhn7fawVX2aUb94arhEErAkuyKVbNBvGWtv) active until 2021-01-30T00:00:00Z

- _Authors_  
Asaf Silman

- _Abstract_  
Implement a smart treasury for the idle protocol. A smart treasury, based on the [article by Placeholder VC](https://www.placeholder.vc/blog/2020/9/17/stop-burning-tokens-buyback-and-make-instead) could be implemented to redirect a portion of the fees into a buy-back machine, while also providing more on-chain liquidity.

- _Problem_  
Since the launch of the $IDLE governance token, there has been an ongoing discussion in the forum of how to increase the on-chain liquidity of the token, and of how to give the tokens economic value in the long-term to its holders. Uniswap-like liquidity mining programs help boost on-chain liquidity in the short term, but once the program is finished most of the liquidity evaporates. Buy-back and burn models help increase the token value but also shrinks the supply of the token, which is counter-intuitive when the primary role of the token is voting rights.

- _Solution_  
A smart treasury helps in solving both of these issues for $IDLE by increasing the on-chain liquidity of IDLE, and by providing a sound value proposition. Fees which are generated from the protocol can be redirected into the balancer pool, acting as a ‘buy-back machine’. This pool will be available for investors to swap against, increasing on-chain liquidity. The fees which are generated from swaps will be added into the pool, which serves as an additional income stream for the IDLE protocol. In addition to this, making the protocol eligible for $BAL tokens which can be held, or re-invested back into the smart treasury. The smart treasury will be controlled by the IDLE governance which can adjust parameters such as pool weights, token additions/removals, swap fees, and to pause/unpause swaps.

- _Parameters_

- _Benefits_  
Implementing a smart treasury benefits everyone in the idle community, $IDLE holders will have long-term incentives to remain holders through the tokenomics of the smart treasury, $IDLE investors/traders will have access to greater liquidity for IDLE on-chain. The IDLE protocol also benefits as it will gain an additional revenue stream which can be utilised for funding further growth for the protocol and community.

- _The Journey_  
The smart treasury idea was discussed from the early stages of IDLE governance release, the following posts trace the journey of how we got to this IIP

The code has now been reviewed by members of the community with the commit at [9cef492](https://github.com/AsafSilman/idle-smart-treasury/commit/9cef492a6e07622f8c7d79dd3504a4191942b60e) being the most up-to date version of the code. With reviewers

@emilianobonassi, @EndymionJkb | @Fernando , @MickdeGraaf, @patitonar, @william and @gravityblast

contributing issues to the github. Please share an eth address for your tip once the treasury committee is ready.

- _References_

- _Proposal Roadmap_  
This is the outline each step which needs is required to implement this IIP, and where governance will need to be involved.

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**Author:** ![william](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.pareto.credit/william/32/10_2.png) [@william](https://gov.pareto.credit/u/william)\
**Post date:** [January 27, 2021, 9:35am UTC](https://gov.pareto.credit/t/iip-2-add-a-smart-treasury-to-idle/211/2 "2021-01-27T09:35:08Z")

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Really a great job so far @8bitporkchop!

> [@8bitporkchop](#):
>
> 0x143daa7080f05557C510Be288D6491BC1bAc9958

Let’s spread the word and delegate votes to this address! 🙂

One minor note, I think we could also withdraw some IDLE to the multisig to tip the reviewers, alongside the 1000 IDLE bounty for the IIP (so to not hit the 10 actions limit per proposal) for their contibution and let the multisig then procede with the transfers or we can distribute rewards through the Treasury committee once set up in 1-2 week.

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**Author:** ![Coinballers](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.pareto.credit/coinballers/32/311_2.png) [@Coinballers](https://gov.pareto.credit/u/Coinballers)\
**Post date:** [January 27, 2021, 11:27am UTC](https://gov.pareto.credit/t/iip-2-add-a-smart-treasury-to-idle/211/3 "2021-01-27T11:27:26Z")

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How do we delegate votes @william ?

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**Author:** ![william](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.pareto.credit/william/32/10_2.png) [@william](https://gov.pareto.credit/u/william)\
**Post date:** [January 27, 2021, 11:35am UTC](https://gov.pareto.credit/t/iip-2-add-a-smart-treasury-to-idle/211/4 "2021-01-27T11:35:34Z")

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Here is a guide [[Guide] — How To Delegate](https://gov.pareto.credit/t/guide-how-to-delegate/43)

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**Author:** ![Fernando](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.pareto.credit/fernando/32/306_2.png) [@Fernando](https://gov.pareto.credit/u/Fernando)\
**Post date:** [January 27, 2021, 1:37pm UTC](https://gov.pareto.credit/t/iip-2-add-a-smart-treasury-to-idle/211/5 "2021-01-27T13:37:10Z")

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Congrats on the great work guys! No tip needed for me obviously: let me know if I can help any further =)

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**Author:** ![idal](https://avatars.discourse-cdn.com/v4/letter/i/ba8739/32.png) [@idal](https://gov.pareto.credit/u/idal)\
**Post date:** [February 1, 2021, 1:03pm UTC](https://gov.pareto.credit/t/iip-2-add-a-smart-treasury-to-idle/211/6 "2021-02-01T13:03:45Z")

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520K votes minimum exceeded! 🎉

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**Author:** ![8bitporkchop](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.pareto.credit/8bitporkchop/32/24_2.png) [@8bitporkchop](https://gov.pareto.credit/u/8bitporkchop)\
**Post date:** [February 4, 2021, 12:44am UTC](https://gov.pareto.credit/t/iip-2-add-a-smart-treasury-to-idle/211/7 "2021-02-04T00:44:45Z")

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# Smart Treasury is Live 🚀

Hi everyone, I am glad to announce that phase 1 of IIP-2 has been successfully executed, and the smart treasury has been successfully bootstrapped. \>\> [[[Here]]](https://pools.balancer.exchange/#/pool/0xcaf467dfe064a1f54e4ece8515ddf326b9be801e/) \<\<.

To trade with the smart treasury you can simply use the balancer UI. Trades will be automatically routed to the treasury: [Balancer Exchange](https://balancer.exchange/#/swap).

The pool was bootstrapped with a starting weights of 96/4 : IDLE/WETH.  
(The actual weights are 95.98 / 4.02 and will be gradually updated to 90/10)

In addition to this 1,300 $IDLE was also withdrawn as part of this proposal to fund the development grant and reward peer reviewers.

@emilianobonassi, @EndymionJkb , @MickdeGraaf, @patitonar, @william and @gravityblast

**Technical details**  
Here is the list of transactions which were executed in order to bootstrap the treasury. The gnosis safe multisig was used for transactions interacting with the [SmartTreasuryBootstrap Address](https://etherscan.io/address/0x4ff95c83e874df9029a665a0aba31828bada9596#code).

1. Execute Proposal → tx [0xd155bb20…](https://etherscan.io/tx/0xd155bb20ec798a70aa81957a024cedffa8ee23c76e5d1c7aa0ef1c263708304a)
2. `swap()` → tx [0x29934ad8…](https://etherscan.io/tx/0x29934ad8c07efb00dcb8a41b215580bb73d3054e2c4f59ed64e6e8e247cc2cf9)
3. `setIDLEPrice()` → tx [0x1718aa1f…](https://etherscan.io/tx/0x1718aa1fecf0557c70648663c09af5411f88cd1635026c47edb8df8badfb71dc)
4. `initialise()` → tx [0x8111389d…](https://etherscan.io/tx/0x8111389d233f234929ef95195414b68f46fabf079f1eda62e235af14e573f5b9)
5. `bootstrap()` → tx [0xcbe221…](https://etherscan.io/tx/0xcbe221530e6c27472b3dc97479ef217ea419356415165cf5aaec038967d8cc7d)
6. `renounce()` → tx [0x777675db…](https://etherscan.io/tx/0x777675db69fb7e5276641d320c5d75f62f26e968aa965de51dad021267a11e4d)
7. `setSmartTreasuryAddress()` → tx [0xedd6297b](https://etherscan.io/tx/0xedd6297bee89bc09035311b2c669a21ffc4cf4b6af891ddb08ced72000e09d77)

The address of the ConfigurableRightsPool (Smart Treasury) is here: [0x859e4d219e83204a2ea389dac11048cc880b6aa8](https://etherscan.io/address/0x859e4d219e83204a2ea389dac11048cc880b6aa8)

And the address of the underlying bPool is here: [0xcaf467dfe064a1f54e4ece8515ddf326b9be801e](https://etherscan.io/address/0xcaf467dfe064a1f54e4ece8515ddf326b9be801e)

**Issues encountered during bootstrap**  
There was a minor issue encountered during the pool bootstrap where the call to `updateWeightsGradually` had the wrong parameters. This will be fixed in phase 2 of the IIP, where we will call `updateWeightsGradually` again with the correct parameters to gradually move the pool weights from 96/4 → 90/10.

**Next Steps**  
Now that the first phase of IIP-2 has been executed the next phase will be to enable the protocol buy-back by routing fees from idle to the [FeeCollector contract](https://etherscan.io/address/0xBecC659Bfc6EDcA552fa1A67451cC6b38a0108E4). A new on-chain vote will be created in the coming days with the fix to the pool weights also included.

Thank you to everyone who voted and contributed to this proposal, it’s been an awesome experience 😃 🚀 .

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**Author:** ![Coinballers](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.pareto.credit/coinballers/32/311_2.png) [@Coinballers](https://gov.pareto.credit/u/Coinballers)\
**Post date:** [February 4, 2021, 12:59am UTC](https://gov.pareto.credit/t/iip-2-add-a-smart-treasury-to-idle/211/8 "2021-02-04T00:59:43Z")

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Congrats on getting the Smart Treasury off the ground Asaf. Well done, amazing job 🔥

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**Author:** ![unicorn](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.pareto.credit/unicorn/32/48_2.png) [@unicorn](https://gov.pareto.credit/u/unicorn)\
**Post date:** [February 4, 2021, 1:49am UTC](https://gov.pareto.credit/t/iip-2-add-a-smart-treasury-to-idle/211/9 "2021-02-04T01:49:51Z")

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Really cool to be part of the idle community! Roadmap for 2021 is crazy fun!!  
Congrats to EVERYONE!

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**Author:** ![Cippo](https://avatars.discourse-cdn.com/v4/letter/c/c2a13f/32.png) [@Cippo](https://gov.pareto.credit/u/Cippo)\
**Post date:** [February 4, 2021, 11:59am UTC](https://gov.pareto.credit/t/iip-2-add-a-smart-treasury-to-idle/211/10 "2021-02-04T11:59:01Z")

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Really good job! 🙂

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**Author:** ![Davide](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.pareto.credit/davide/32/3_2.png) [@Davide](https://gov.pareto.credit/u/Davide)\
**Post date:** [February 4, 2021, 12:05pm UTC](https://gov.pareto.credit/t/iip-2-add-a-smart-treasury-to-idle/211/11 "2021-02-04T12:05:39Z")

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Congrats @8bitporkchop, the countless contributors, and the whole Idle Governance for the deployment of the Smart Treasury! 👏 🚀

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**Author:** ![wlamhk](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.pareto.credit/wlamhk/32/160_2.png) [@wlamhk](https://gov.pareto.credit/u/wlamhk)\
**Post date:** [February 4, 2021, 12:08pm UTC](https://gov.pareto.credit/t/iip-2-add-a-smart-treasury-to-idle/211/12 "2021-02-04T12:08:37Z")

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🤩 🥳 🥳

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**Author:** ![Teo](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.pareto.credit/teo/32/1261_2.png) [@Teo](https://gov.pareto.credit/u/Teo)\
**Post date:** [February 4, 2021, 3:44pm UTC](https://gov.pareto.credit/t/iip-2-add-a-smart-treasury-to-idle/211/13 "2021-02-04T15:44:34Z")

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Huge congrats @8bitporkchop, that’s a great milestone 💯 🔥 props to the whole community for supporting, discussing, and moving forward with this initiative!

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**Author:** ![8bitporkchop](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.pareto.credit/8bitporkchop/32/24_2.png) [@8bitporkchop](https://gov.pareto.credit/u/8bitporkchop)\
**Post date:** [February 5, 2021, 1:04am UTC](https://gov.pareto.credit/t/iip-2-add-a-smart-treasury-to-idle/211/14 "2021-02-05T01:04:13Z")

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Phase two of this proposal is now live on-chain 🎆

[https://idle.finance/#/governance/proposals/3](https://idle.finance/#/governance/proposals/3)

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**Author:** ![MickdeGraaf](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.pareto.credit/mickdegraaf/32/133_2.png) [@MickdeGraaf](https://gov.pareto.credit/u/MickdeGraaf)\
**Post date:** [February 5, 2021, 3:16pm UTC](https://gov.pareto.credit/t/iip-2-add-a-smart-treasury-to-idle/211/15 "2021-02-05T15:16:01Z")

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Hi frens I was told to post a bounty address here for reviewing the smart contract. You can send the bounty to `mick.eth`

Great to see it go live!

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**Author:** ![patitonar](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.pareto.credit/patitonar/32/140_2.png) [@patitonar](https://gov.pareto.credit/u/patitonar)\
**Post date:** [February 5, 2021, 5:49pm UTC](https://gov.pareto.credit/t/iip-2-add-a-smart-treasury-to-idle/211/16 "2021-02-05T17:49:40Z")

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Great job everyone! Glad to see this working!

Here is my eth address: 0x3752F0a521b2E383693f658D6FC377953024C207

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**Author:** ![FedeCrypto](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.pareto.credit/fedecrypto/32/50_2.png) [@FedeCrypto](https://gov.pareto.credit/u/FedeCrypto)\
**Post date:** [February 7, 2021, 2:48pm UTC](https://gov.pareto.credit/t/iip-2-add-a-smart-treasury-to-idle/211/17 "2021-02-07T14:48:04Z")

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Congrats @8bitporkchop 🙌 👊 great job 💪

Looking on the “about” tab of the pool there is something i don’t understand:

 ![immagine](https://canada1.discourse-cdn.com/flex031/uploads/idle/original/1X/a6d09b7b90cf812197389605f138db11f19e813e.png)

- There is a gradual weights update underway  
_from June 20, 2680, 10:01 PM (1612391309)_  
_until July 15, 2681, 10:01 PM (1614983309)_

- _Restrict LPs to a whitelist_  
Tokenholders can be included into a whitelist or for be a LP need a new smart contract that will create a tokenholders pool and than it will be a LP for the Treasury?

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<div class="post-metadata">

**Author:** ![8bitporkchop](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.pareto.credit/8bitporkchop/32/24_2.png) [@8bitporkchop](https://gov.pareto.credit/u/8bitporkchop)\
**Post date:** [February 7, 2021, 3:47pm UTC](https://gov.pareto.credit/t/iip-2-add-a-smart-treasury-to-idle/211/18 "2021-02-07T15:47:38Z")

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The gradual weight update parameters were incorrectly entered. The issue was the start and end times were entered as timestamps, when they should have been blocknumbers.

> [@8bitporkchop](#):
>
> Issues encountered during bootstrap

I have already spoken with the balancer team about this, and a fix has already been implemented into phase 2 of this IIP if you look at the on-chain proposal it is the first action.

Upon the advice from balancer and the general design principal of a smart treasury, the protocol should be the only LP. This is just the safest design choise for the smart treasury. This doesn’t stop others from creating their own pools on balancer however. Once balancer V2 is released, or after a few months it may be good to re-evaluate the performance of the smart treasury and see what could be changed to optimise the pool to the needs of the community.

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<div class="post-metadata">

**Author:** ![8bitporkchop](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.pareto.credit/8bitporkchop/32/24_2.png) [@8bitporkchop](https://gov.pareto.credit/u/8bitporkchop)\
**Post date:** [February 8, 2021, 10:40am UTC](https://gov.pareto.credit/t/iip-2-add-a-smart-treasury-to-idle/211/19 "2021-02-08T10:40:22Z")

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This is the eth address I will be using for receiving the development grant: 0x1929A0454cDD4d925E8Fc9b6c366ECD7844866F2

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<div class="post-metadata">

**Author:** ![emilianobonassi](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.pareto.credit/emilianobonassi/32/134_2.png) [@emilianobonassi](https://gov.pareto.credit/u/emilianobonassi)\
**Post date:** [February 8, 2021, 12:32pm UTC](https://gov.pareto.credit/t/iip-2-add-a-smart-treasury-to-idle/211/20 "2021-02-08T12:32:20Z")

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Great job! Really proud to have participated and glad we achieved this result!

My address is emiliano.eth

Looking forward to build and support even more!

[Next page](https://gov.pareto.credit/t/iip-2-add-a-smart-treasury-to-idle/211.md?page=2)