Idle CDO cards

Idle CDO Cards NFT contract allows to mint Idle CDO cards balancing the risk exposure between the trenches AA and BB.

Motivation

This product is based on Gitcoin Hackathon: Grants Round 11 Hackathon Build On Top Of Idle Perpetual Yield Tranches! bounty.

https://gitcoin.co/issue/Idle-Labs/idle-contracts/33/100026511

On the other hand, Some improvements were suggested by IdleDAO and the project was created in order to follow up on them.

Challenge Description

Build products or strategies on top of Idle Perpetual Yield Tranches.

Show your creativity: in this challenge, you should create and develop a product employing Idle Tranches as yield source (e.g., create an effective CDO contract where you bundle different classes of Idle Perpetual Yield Tranches together).

Scope

It should be seen it as an initial seed and proof of concept to start building on Idle Tranches protocol.

issue-1 implementation: Allow Idle Cards combining N types of CDOs.

Demo

issue3.mp4

What is Idle CDO Cards?

Totally based on Idle Perpetual Yield Tranches https://github.com/Idle-Labs/idle-tranches#readme, Idle CDO Cards allows to create different types of investing strategies balancing risk and gain.

This strategies are represented by Idle CDO Cards, which are a NFT token. The cards (as any NFT token) could be traded in a NFT marketplace, used as collateral, or simply burned to get the profits.

Who does it work?

When you mint a card, you can choose the exposure balancing between the expected profits and risk. The amount is split proportionally based on the exposure and deposited in tranches AA (less risky) or BB (more risky) as appropriate.

Technical Details

Idle CDO Cards UI

You can find technical information for the UI client in README Idle Cards UI

The code is located in https://github.com/elmol/idle-cdo-cards/tree/main/risk-cards-ui

Idle CDO Cards Contract

You can find the Idle CDO Card contract in the idle-tranches fork https://github.com/elmol/idle-tranches

Contract Files:

• Card Manager: https://github.com/elmol/idle-tranches/tree/issue-5-combining-n-cdos/contracts/IdleCDOCardManager.sol
• Card: https://github.com/elmol/idle-tranches/tree/issue-5-combining-n-cdos/contracts/IdleCDOCard.sol

Deploy for manual testing

1. Clone idle-tranches fork https://github.com/elmol/idle-tranches and checkout the branch issue-5-combining-n-cdos
2. Be sure that you have configured your alchemy key in .env file
3. Upload local node with hardhat

npx hardhat node

4. Deploy Contracts

# npx hardhat deploy-cards-test --network localhost

================================================================================
📤 Idle CDO Cards deployed at 0xdbC43Ba45381e02825b14322cDdd15eC4B3164E6
📤 Idle CDO DAI deployed at 0x59b670e9fA9D0A427751Af201D676719a970857b by owner 0xf39Fd6e51aad88F6F4ce6aB8827279cffFb92266
💵 DAI Underlying Token address: 0x9fE46736679d2D9a65F0992F2272dE9f3c7fa6e0
📤 Idle CDO FEI deployed at 0x4ed7c70F96B99c776995fB64377f0d4aB3B0e1C1 by owner 0xf39Fd6e51aad88F6F4ce6aB8827279cffFb92266
💵 FEI Underlying Token address: 0xCf7Ed3AccA5a467e9e704C703E8D87F634fB0Fc9
📤 Idle CDO USDC deployed at 0x322813Fd9A801c5507c9de605d63CEA4f2CE6c44 by owner 0xf39Fd6e51aad88F6F4ce6aB8827279cffFb92266
💵 USDC Underlying Token address: 0xDc64a140Aa3E981100a9becA4E685f962f0cF6C9
🔎 Buyer address: 0x70997970C51812dc3A010C7d01b50e0d17dc79C8
================================================================================

5. Connect through metamask to localhost:8545 and import the
   account: 0x70997970C51812dc3A010C7d01b50e0d17dc79C8
   PK: 59c6995e998f97a5a0044966f0945389dc9e86dae88c7a8412f4603b6b78690d
   Caveat: be sure that the configured chainId in metamask is 31337
   

6. Go to https://elmol.github.io/idle-cdo-cards/

Test Coverage

File	% Stmts	% Branch	% Funcs	% Lines	Uncovered Lines
IdleCDOCard.sol	100	100	100	100
IdleCDOCardManager.sol	100	100	100	100

Gas Report

In order to generate the gas report the following env variable should be configured in .env files in https://github.com/elmol/idle-tranches project

REPORT_GAS=true

Next steps and open discussion

As we mentions in the scope this is a POC in order to start building on Idle Tranches protocol that server to open discussions and have an early feedback. So, this not should be put into production for now.

Allow the users to choose different tranches of different IdleCDO in a single Idle CDO NFT Card. (UI included)

https://github.com/elmol/idle-cdo-cards/projects/1

Investment and reinvestment period.

Currently the investment period is not considered for Cards Protocol. Therefore, the profit produced by a card during a period is shared between all. In other words, the time from a card was minted (mint period)_ _is not taken into account. And this is wrong.

There were/are analyzing different strategies like delegate calls to Idle Tranches, external periodical harvest per card, analytic period profit using oracles, and contract pool creation per card like Uniswap v3.

It was FIXED creating a card contract for each card elmol/idle-tranches#1

Idle protocol rewards.

Currently idle rewards are not returned to the investor in any way. There is not an strategy defined for stack or reinvest this rewards.