You need to use a larger rectangular square of cardboard than the currency sleeve. The stronger (& thinner) the better. I cut them to be just slightly smaller than my envelope (so the entire insert/note/insert doesn't move much). You don't need a special envelope provided you use 2 cardboard inserts. Auction houses use large cardboard envelopes + a cardboard insert. (They're usually FedEx & expensive).
For 2 cardboard inserts postage is slightly more but worth it. It's slightly more expensive than regular postage for just the currency sleeve. (I know this b/c I have a swap partner who uses almost nothing for our current polymer notes so I've used a currency sleeve plus a very light piece of cardboard stock & postage was regular postage- nothing extra). I do not recommend this at all (especially for older/more valuable paper you wish to keep UNC). If you wish to post VF notes (or have discussed it with your swap partner) than I suppose you should get away with it for circulated notes.
I use post-its & tape the non-sticky side to the cardboard insert & use the sticky side on the currency sleeve- to keep the currency sleeve (Note) in the middle of the cardboard. I also put the currency sleeve (note) inside a plastic envelope (or wrap it with a small piece of saran wrap) in order to waterproof the note. I also use 1 extra (thinnest) cardboard stock insert just so nobody can feel that there's a currency sleeve inside my envelopes. So the currency sleeve is sandwiched between 2 cardboard inserts (one sturdy, the other more for concealment).
Hope that helps!