As of September 6, 2021, Idle (IDLE) is ranked at position 784 on CoinMarketCap and at position 37 for lending protocols on DefiPulse. The International Token Standardization Association released a list with all 12 Idle tokens of which 11 are wrapped versions of prominent stable coins and one is the governance token which is used to make on-chain governance proposals. ITSA has assigned unique token identifiers to each of the tokens and classified them according to the International Token Classification (ITC). The project went live in August 2019 and a series of enhancements have been made in the months since. This subsequently led to the launch of Idle Finance V3, which aimed to deliver a streamlined interface and a better experience for users. As of today, Idle has reached a total value locked of 185M$.

Authors: Christian Viehof, Maximilan Bruckner

Idle Finance v3

Figure 1: Total value locked in Idle Finance (Source: DefiPulse)

Idle Finance Tokens identified and classified

Apart from stable coins, users can also deposit Wrapped Bitcoin (WBTC), which is an ERC-20 version of Bitcoin created through a token bridge connecting the Bitcoin network with the Ethereum network. Wrapped tokens such as Wrapped Bitcoin have become popular during the massive DeFi expansion in the summer of 2020 as they allow for the efficient allocation of capital in DeFi services on the Ethereum blockchain. Idle Finance harmonizes all deposited tokens via their own smart contracts creating a wrapped version of the already wrapped Bitcoin called IdleWBTC. The ongoing innovation in the DeFi space and the continuous expansion of token bridges among popular networks such as Tron or Binance Smart Chain (BSC) highlight the need for identifiers such as the ITIN. The underlying assumption of the ITIN is that tokens need to be uniquely identified on a token layer. Wrapped tokens are in regard to value often indistinguishable from their original counterparts but they differ from technical perspective. Therefore it will be necessary to identify and classify each wrapped token individually in order to give more transparency to customers and to increase the acceptance of cryptographic tokens among the public.

Figure 2: Tokenbase list with all currently supported tokens including the Idle governance token (Source: https://api.itsa.global/view-list?list_id=18)

The classification of Idle according to the ITC

Figure 3: The Idle Tokenbase entry (Source: https://itin.itsa.global/KT2N1ZD81)

Economic Purpose (EEP): Idle is listed as a non-transactional Governance Token (EEP22TU03) due to its on-chain governance functionality.

Industry Type (EIN): The issuer of Idle is active in the field of Decentralized Lending, Saving and Asset Management (EIN06DF02).

Technological Setup (TTS): Idle is an Ethereum ERC-20 Standard Token (TTS41BC). The Class “Ethereum ERC-20 Standard Token” captures every Token that is implemented by means of the ERC-20 Standard on top of the Ethereum blockchain.

Legal Clam (LLC): Idle does not entitle its holder to any legal claim or rights against the issuing organization, therefore it is listed as a No-Claim Token (LLC31).

Issuer Type (LIT): The dimension “Issuer Type” provides information on the nature of the issuer of the token. Idle’s platform is built by a team of programmers and engineers that make up the core contributor community. It’s Issuer Type is a Private Sector Legal Entity (LIT61PV).

Regulatory Framework (EU) (REU): The dimension “Regulatory Status EU” provides information of the potential classification of a token according to the European Commission’s proposal for a Regulation on Markets in Crypto Assets (MiCA, Regulation Proposal COM/2020/593 final). Uniswap qualifies as an Utility Token (REU52) according to the definition provided in Article 3 (5) of Regulation Proposal COM/2020/593 final.

The International Token Standardization Association (ITSA) e.V.

  • The International Token Identification Number (ITIN) is a 9-digit alphanumeric technical identifier for both fungible and non-fungible DLT-based tokens. Thanks to its underlying Uniform Token Locator (UTL), ITIN presents a unique and fork-resilient identification of tokens. The ITIN also allows for the connecting and matching of other media and data to the token, such as legal contracts or price data, and increases safety and operational transparency when handling these tokens.
  • The International Token Classification (ITC) is a multi-dimensional, expandable framework for the classification of tokens. Current dimensions include technological, economic, legal, and regulatory dimensions with multiple sub-dimensions. By mid-2021, there will be at least two new dimensions added, including a tax dimension. So far, our classification framework has been applied to 99% of the token market according to market capitalization of classified tokens.
  • ITSA’s Tokenbase currently holds data on over 4000 tokens. Tokenbase is a holistic database for the analysis of tokens and combines our identification and classification data with market and blockchain data from external providers. Third-party data of several partners is already integrated, and API access is also in development.

Remarks

Christian Viehof is an Executive Director at the International Token Standardization Association (ITSA) e.V., working to create the world’s largest token database including a classification framework and unique token identifiers and locators. He completed his Bachelor in Economics at the University of Bonn, the Hong Kong University and the London School of Economics and Political Science with a focus on Behavioral Economics and Finance. Currently pursuing his Master of Finance at the Frankfurt School of Finance and Management, you can contact him via christian.viehof@itsa.global and connect with him on Linkedin, if you would like to further discuss ITSA e.V. or have any open questions.

Maximilian Bruckner is Executive Director at the International Token Standardization Association (ITSA) e.V., working to create the world’s largest token database including a classification framework and unique token identifiers and locators. He has a strong international background with significant time spent in Spain, South Africa, and Canada. Currently pursuing studies at the Frankfurt School of Finance and Management, you can contact him via maximilian.bruckner@itsa.global and connect on LinkedIn if you would like to further discuss ITSA e.V. or have any other open questions.

The International Token Standardization Association (ITSA) is a not for profit organization working on holistic market standards for the global token economy.