TrueFi is ready to launch new lending pools this month as part of the roadmap’s Phase 3 rollout.
- tfUSDC will be the first new lending pool to launch.
- tfUSDT is expected to launch 2-6 weeks later, once tfUSDC utilization rate is >25% and the community supports moving forward with launching another lending pool.
This post proposes (a) creating farms for the new lending pools, (b) and boosting farms and TRU staking incentives to drive rapid growth in these new pools.
The objectives of this proposal are to double total value locked (increase to ~$200M TVL) and to generate >$60M in new loans by end of June, using the following levers:
i. Create new farms and boost tfUSDC and tfTUSD emissions for 14 days following launch:
- Create a tfUSDC farm w/ daily emissions of 290,934 TRU / day
- Boost the tfTUSD farm daily emissions 2x from 145,467 to 290,934 TRU / day
- Time period:
- Boosted emissions run for 14 day period, starting when tfUSDC launches
- After 14 days, emissions will revert to 145,467 TRU / day unless extended by governance.
- The success of this campaign will inform our approach to incentivizing the launch of the tfUSDT lending pool, which will be a separate discussion/poll.
ii. Increase TRU staking emissions 25% to encourage new TrueFi participants to stake their TRU rewards:
- Increase stkTRU daily emissions from 100,000 to 125,000 TRU / day
- This aims to maintain current ~50% staking APR for 100M TRU staked
- Emissions run for 90 days, to be revisited by governance before Phase 4
Proposed total emissions increase vs. current:
- 14 day launch period: 461,401 additional TRU / day
- Day 15 - Day 90: 170,467 additional TRU / day
- Adding new assets is a massive opportunity to grow TrueFi
- TrueFi has grown from $0 to ~$100M TVL w/ only TrueUSD which has had ~$500M in avg. circulating supply during TrueFi’s lifetime
- New assets represent >$65bn in circulating supply
- USDC supply = $15bn, USDT supply = >$50bn
- As lending pool sizes grow, staked TRU should grow too
- stkTRU provides default protection for lenders and builds confidence that TrueFi can weather one or more defaulted loans
- HODL and stake:
- As new lenders collect TRU rewards, staking incentives can attract users to get involved in TrueFi staking and governance
- Staking rewards should be competitive with Sushiswap TRU/ETH returns; in my opinion, stkTRU APY should be higher than Sushi’s because staking delivers more value to our ecosystem than LPing
Now feels like the right time
- Draw our line in the sand: We’re opening up TrueFi to a huge swath of new users; let’s seize the opportunity and stake our claim as lending platform of choice for DeFi summer pt. 2
- Improve TRU fundamentals: New pools can generate lasting loan activity and protocol fees for TrueFi
- We have the means: TRU token supply has >500mm remaining TRU allocated to incentives.
Share your thougths and vote below. If this idea has wide support, it will move to a Snapshot vote next week.
- Yes, I support this
- No, we should do something else (comment below)