Idle Finance is a DeFi protocol that has been growing rapidly in recent weeks and has already surpassed $100M in total value locked (at the time of writing it is around $140M). The project has been around for a long time and it peaked in November, experiencing a dramatic increase in the price of its governance token: $IDLE.
But what does Idle Finance do exactly?
Idle is a decentralized platform that can manage users’ funds in order to get the best returns. Idle uses automated rebalancing across DeFi protocols to maximize returns on investment. Obviously there are several possibilities to choose from, such as the maximum return option – Best Yield Strategy (but also maximum risk) or options with lower risks but also limited gains. The latter strategy is called RiskAdjusted and is suitable for those who want to put their money to work without worrying too much about unnecessary risks.
Best-Yield Strategy: This first strategy is able to offer a higher APY (currently around 16% with a risk score of 7.1). But how does it work? In a nutshell, Best-Yield is able to track interest on different lending protocols and always choose those with the highest APY. If Idle identifies a better interest rate on a new protocol, there is a rebalancing of users’ funds and they do not have to worry about always checking dozens of protocols to find the best interest rate. With one click it will always be possible to get the best yield on the investment. People can participate in this strategy by depositing different cryptocurrencies such as: DAI, USDC, USDT, SUSD, TUSD and WBTC.
Risk-Adjusted Strategy: Currently this strategy has an APY of around 4% with a risk score of 7.9. These numbers are not fixed so they can change several times even on a daily basis. It is a less used strategy but is recommended for those users who do not want to worry about risk. Idle will take care of the investment, avoiding all protocols with bad ratios or negative scores. The strategy with the lowest possible risk will always be chosen, allowing to earn a reasonable amount of money, considering that the money in banks, for example, is currently suffering from negative interest rates in many countries. This strategy allows participants to deposit a limited number of stablecoins: DAI, USDC and USDT.
The Idle Finance Dashboard always shows the total value locked of the protocol and the data of each stablecoin deposited. For each token there are important stats such as pool size, current APY (and IDLE earned per day), Risk Score and APY trend during the last week. Everything is transparent and well organized which instils a lot of confidence in this new DeFi project.
Strategies are not the only features of Idle since it is also possible to convert tokens directly from the dashboard thanks to the integration of Kyber Network or to buy cryptocurrencies (stablecoins) directly with credit cards or bank transfers. These functionalities are limited to certain countries and are possible through collaboration with external partners.
Security is the number 1 issue in the DeFi industry, don’t you agree? That’s why IDLE Finance decided to perform 2 full audits with one of the best companies in the industry: Quantstamp. Both Audits, one for Idle Finance and one for the Idle Governance token, can be found on their official website at these links: Audit 1 – Audit 2.
But in case that’s not enough, Idle Finance is backed by important names in the crypto sphere, namely: Consensys, gumi Cryptos, Green Field One, Dialectic, the Lao, BR Capital and Long Hash Ventures.
Of course, the entire infrastructure is based on the best DeFi protocols such as Compound, AAVE, dYdX and Maker.
IDLE Governance Token
The IDLE token was announced on November 26th on the official IDLE Medium blog and immediately attracted the attention of thousands of token holders, also seeing a sharp increase in price. The Max Supply is only 13,000,000 tokens, while the circulating supply is currently less than one million tokens (source: CoinGecko). The all-time low of the token is only $0.78 while the all-time high reached $15 just 6 days ago. A terrific performance that could continue its positive trend in the coming months thanks to the strong interest in the project and the continuous increase of the Total Value Locked (TVL).
Stay updated about Idle
To follow IDLE closely here are some useful links to their official social media channels: