Integrate Idle Finance Junior Tranches


Implement new yield farming strategies from Idle Finance (Junior Tranches) into the Spool offering.


Spool’s smart vaults are created by building on the included set of potential yield strategies. With every additional strategy, the Spool toolbox gets larger and more attractive for new smart vault Creators from diverse backgrounds.

Therefore, with this vote the following new strategy shall be made possible for Smart Vault Creators to pick from:

Idle Finance JT strategy

Idle is a decentralized protocol and set of products that offer yield generation. It allows users to algorithmically optimize their digital asset allocation across leading DeFi protocols.
Herewith, I propose adding the Idle Finance Junior Tranche to the Spool toolbox.

Perpetual Yield Tranches: PYTs are capital pools that automatically generate and tranche yields and risks based on a range of market-neutral yield strategies, including lending income, trading fees from Automated Market Makers, and protocol incentive farming. Tranches allow users to choose between a higher-yielding, yet higher-risk Junior Tranche and a lower-yielding but lower-risk Senior Tranche. The Junior tranche leverages the yield earned by the Senior tranche’s funds, increasing the potential APY. However, in return for this additional yield, it covers the risk of the Senior tranche in the event of an exploit or other security breach.The Idle Finance JT strategy supplies [$CURRENCY] via Spool Smart Vaults to these pools aka Junior Tranches once the new strategy is implemented.

[$CURRENCY] stands for the chosen currency of the respective Spool.


As Spool V1 is currently still coming a bit short on the higher risk higher yield side, integrating the Idle Finance Junior Tranche is a step toward being more attractive in this direction. IF are able to provide above-average returns (at current times) on their Junior Tranches while keeping the risk at a tolerable level. Therefore, an integration enables users to create more diverse and high-yield Smart Vaults at Spool, which attracts more risk-tolerant investors.

Vote - not here but later on snapshot

With “Yes” you vote to implement the Idle Finance Junior Tranche Strategy into Spool and increase the offering for new Smart Vault Creators, with “No” you vote against including this strategy.


Submission Period: 11. October - 14. October 2022

(Proposed) Snapshot Voting Period: 14. October - 18. October 2022


Happy to see some higher yields become available.


I like what they are doing over at Idle Finance and I would love to see some more higher yield strategies come to Spool so I say YES to this proposal!

Hey Spool community :wave:

I’m Biaf from Idle.

We definitely support this proposal that could further strengthen the partnership between Idle and Spool.

In this Medium article, you can find a general overview of the Adaptive Split mechanism behind PYTs that can help you better understand how the boosted APYs for Junior tranches are generated.