We are excited to share that we have backed Idle Finance in a $1.2m. Seed round together with Gumi Crypto, Quantstamp, Dialectic Capital, The LAO, and more.
Risk-adjusted lending aggregator
At Greenfield we have been investing in decentralized finance for a while and continue to be amazed by the pace of innovation and adoption. While the overall industry offers outsized lending returns if utilized optimally, it is too time-consuming and cost-ineffective to manage all of these protocols for the average user.
This is where Idle comes in and has shown to develop the most sophisticated lending optimizer on the market with a unique focus on security and risk-adjusted returns. Building on this strong foundation and investors such as Quantstamp, a reputable smart-contract auditor, Idle can further nurture its brand as the most secure lending aggregator on the market.
How does it work?
Users deposit their assets (currently DAI, USDC, USDT, sUSD, TUSD, or wBTC) to one of the corresponding Idle pools, which in turn places funds into lending pools at the currently optimal allocation. Rebalancers (users, bots, as well as the Idle team) monitor liquidity and utilization rates of integrated pools (currently Compound, Aave & dY/dX) to trigger rebalance events with a better allocation.
The calculation considers each pool’s utilization, the change of pool liquidity a rebalance is going to cause, and the resulting price impact. This reallocation ensures the optimal lending mix to maximize yield at each moment in time.