Idle + FEI: expanding yield optimization across capital-efficient stablecoins
We are glad to announce that Idle protocol now supports FEI, optimizing returns across Aave, Fuse, and Cream markets.
By integrating this prominent stablecoin, Idle opens the doors to a new segment looking for diversified solutions in the stable assets sphere.
With $3m in TVL and 1 month in beta, today IdleFEI Best-Yield lands in production!
Fei Labs has created a reserve-backed stablecoin, with peg controlled by a monetary policy based on protocol-controlled reserves. The protocol issued about $500 million FEI (circulating supply) that is currently backed by $1 billion in assets.
OpenZeppelin conducted Fei Protocol’s primary audit, and ConsenSys Diligence reviewed the most critical contracts. Furthermore, Fei launched a $1m bug bounty program on ImmuneFi.
A16z, Coinbase Ventures, and other prominent crypto VCs backed Fei Labs.
IdleFEI passed our Integration Standard Requirements, and protocols supporting it (Aave, Fuse, and Cream) have been already integrated into Idle.
Idle as the leading hub for stablecoin yields
Stablecoins have skyrocketed in popularity during the past year thanks to DeFi, the focus on asset diversification, and interests from traditional financial players.
The sector is still in its early stage, with battle-tested assets like DAI, USDT, and USDC leading the market. In recent months, new stablecoins experimented with novel mechanisms to face regulatory risks and capital inefficiencies that characterize current solutions.
FEI introduced a scalable and decentralized approach that leverages protocol-controlled value (PCV) for peg maintenance while maintaining highly liquid secondary markets.
With idleFEI Best-Yield strategy, Idle protocol is parallelly performing yield aggregation and optimization, while also potentially increasing borrowable liquidity in FEI’s current lending markets.
FEI now becomes accessible to individuals looking to maximize the lending returns and other protocols looking to integrate FEI as yield source. The integration works as a bridge to unlock on-top products like vaults, lotteries, DCA strategies, and much more.
At Idle DAO, we are amped to initiate this journey to make the relationship with the vibrant Fei community stronger, representing a secure and fruitful place for FEI holders and Fei DAO itself.
Therefore, Idle DAO welcomes Fei DAO as a partner and potential liquidity provider, allowing the governance to allocate part of its treasury reserve in our strategies, receiving also direct protocol ownership through $IDLE liquidity mining.
Next steps
Following the security-first approach that characterizes Idle deployments, the pool completed its beta-stage journey. With the Integration Standard Requirements already complied, and the pool’s TVL that makes the rebalance cost sustainable, Idle can now initiate the production release.
The production release is the first milestone in this cooperation — this will involve other partners to jointly build on-top products, expanding FEI use cases by using Idle as yield source. From now on, FEI will never sit still.
