Introducing IdleWETH

The DeFi ecosystem has witnessed exponential growth during the last few months, passing from a TVL of $15 billion up to $40 billion. Lending services are leading the rank, managing 40% of the deposited asset.

In this context, Idle has been providing a suite of consistently high-yield pools for stablecoins and WBTC. As the most liquid asset in DeFi, and supported by industry leaders like Maker, Compound, and Aave for a total of $8.5 billion deposits, implementing idleWETH felt like a natural evolution. In retrospect, it was inevitable.

The Idle Governance already acknowledged this integration as a priority and included it in the community roadmap. After weeks of tests, WETH implementation comes out from the beta phase and is available on Idle website.

This new integration also introduces Aave V2 support. The underlying protocol update passed the peer security review and had been discussed by the Idle community in multiple governance discussions.

WETH pool implements Compound and Aave V2 protocol, providing optimized yields across those providers, enabling $COMP farming.

How to deposit in WETH Best-Yield pool

Similar to other Idle pools, $WETH requires approval and deposit transactions. If you have ETH, you can automatically wrap them into WETH from the dashboard. Batch deposits are not currently available for this pool (might be activated in the future if requested).

Interest is accrued in $WETH and compounded block-by-block, with eventual $COMP received when the pool allocates all or part of the funds in Compound.

Tech Details

The pool has been launched with a guarded approach, and the smart contract ownership will be held by the Idle Labs team for 2 weeks. If no unexpected scenarios happen during this phase, after this deadline the contract owner will be transferred to the Idle Governance.

Next steps

The Idle Governance has now the power to include WETH pool in the $IDLE distribution whitelist and enable liquidity mining for that pool. The LM incentives are key drivers of TVL boost during pools’ early-phase, and that decision would provide a more appealing offering.

In parallel, Aave V2 implementation might be extended to all active pools. The protocol upgrade requires an on-chain journey too and the Governance might proceed with the fund migration by partially allocating existing TVL to Aave V2.

These improvements require an on-chain proposal, formalized with an IIP (which can include both).

This release happens along with the upcoming Gitcoin Grants Round 9 Hackathon. There’s been a discussion in the forum on how this collaboration can foster value creation for the protocol, and the Pilot League is currently setting up a possible budget allocation for it.

This partnership can be the initial spark for new strategies and a broader yield spectrum for Idle pools. See you at the Gitcoin hackathon! 🛠👋

Earn the yield you deserve without worrying about finding the best option, whether you want to optimize returns or risks.

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