Hi all, we’ve got another 7 days until the tfTUSD and tfUSDC farms end so wanted to open up two discussions:
Whether or not we should extend the tfUSDC and tfTUSD incentives
When we should consider adding tfUSDT?
The tfTUSD and tfUSDC farms have both done great at attracting new lending deposits. In 7 days, the rewards on both pools will revert from the boosted 290,934 TRU/day → 145,467 TRU/day. Would we like to extend these rewards at 290,934 TRU/day? Allow them to revert to 145,467 TRU/day? Or something else?
On tfUSDT, previously, Tyler had proposed that we wait until the tfUSDC pool hits at least >25% utilization before we consider adding USDT. Are we in agreement that that is the best course of action? If we added USDT there is the potential that would add another 50mm-100mm to TVL, however, if we can’t deploy that into new loans then we’re basically just paying out TRU (sorry if that’s a bit of a leading statement!)
I would try and capitalize on the momentum we have as Rafael said, and launch USDT this week. This should grow us to 300m ish TVL and get us more in the spotlight.
Lets also accept lower interest rates to increase utilization across all pools. I believe Alameda had interest for a 10m loan at 12%ish… lets re engage and have it under usdc? Im sure a few others would jump in at these levels.
With regards to the rewards i would extend them for another week at least and revisit next week.
On a side note, borrowers are incentivized to borrow the least secure stablecoin. This is because if a stablecoin loses its peg, they make a large profit when they have to rebuy it to return the loan. So I would not be surprised if USDT is more popular than USDC if interest rates are equal.
I am worried that the benefits of adding USDT to increase our TVL will be blunted unless we can do a better job of communicating the progress. For instance, we need to make sure Defipulse will accurately report the stats beforehand. We had a MASSIVE boost and it’s shocking how few people seemed to have noticed. I also think we need more clarity on what people are doing with their boosted TRU rewards. I’ve yet to see any evidence that boosting rewards doesn’t just increase sell pressure proportionately. I think it would be wise to keep USDT in our back pocket a little longer until we are fully confident that we can leverage it properly.
Agree on the DefiPulse issue, although it seems its been reported and should be fixed any minute.
With regards to the rewards, we gotta assume they re being sold. Theres nothing we can do about it and imo its the price to pay in exchange for more exposure / increasing TVL… the focus should be on getting our utilization rate higher across all pools by lowering the interest rates, increasing our TVL and communicating it properly… if we do that correctly, this should help us get more TRU interest, boost the price, and consequently improve the APY which means we could then reduce the rewards without affecting as much the APY… Couple that with a potential communication around an upcoming burn, and we should be in a good position, hopefully!
Do we have any information on potential USDT borrowers too? Would be nice to open the pool and then immediately have a borrower vote rather than waiting a week before anything starts moving.
I would love to hear a little more from the borrowers regarding their preference for USDT, then we can take insight about the incentives. Listening to the town hall right now its very interesting to hear ideas about under collateralization and preference given their TRU bags.
So reading between the lines: most trading pairs are in USDT, so borrowers are converting to it when borrow from us. USDT is a somewhat shady stablecoin with a higher risk of losing its peg, which would be very expensive for borrowers as they have to convert back to repay their loans. Most would be happier if we took on that risk instead.
As long as the pools are separate and people lending USDT understand the risks, that is okay. If pools get mingled at some point, it does introduce risks to the wider platform.
Good points @Codeknight . I share the view that we should not intermingle USDT with other pools (at least not unless we’re clearly spelling out that risk to lenders).
Given that a few of us here worked hard to build TrueUSD because we despised USDT’s lack of transparency and trust, I’d say we take this pretty seriously.
for adding USDT pool. Against the increased rewards at the moment. It is necessary to assess the realities of the market, and I’m afraid this will have a negative impact on the price, which already shows weak results in comparison with competitors.
Good points @Codeknight . Our borrowers certainly know how to manage risk, and some have clearly stated a preference for USDT. @tylerw How would you propose the team communicate the risks of holding USDT to the lenders while maintaining impartiality? I think we should make some impartial sources of information readily available and encourage the lenders to DYOR
Note that the snapshot vote above doesn’t cover tfUSDT incentives. We still need to finalize USDT launch plans, and I didn’t want that conversation to slow down action on tfTUSD and tfUSDC.
We should put USDT incentives to a separate vote very soon.
Personally, I support launching USDT this week or next with the same boosted rewards as tfUSDC and tfTUSD. I like @mhanco’s idea to make the incentive boosts coterminous.
