Allocate a total of 8M TRU (2% of TRU incentive supply) as incentives for the launch of the TrueFi Lending Marketplace, to be used over the course of the next 100 days.
- The upcoming TrueFi Lending Marketplace will enable independent managers to create new lending pools (“Portfolios”) where they can implement their own strategies and customize the pool functions to the specific needs of their borrowers and lenders.
- This proposal aims to >2x current loan activity on TrueFi by attracting top borrowers, managers, and lenders to build on TrueFi’s Lending Marketplace, while only increasing total lending pool emissions by ~18% from 276k TRU/day to ~325k TRU/day.
- This proposal draws inspiration from programs run by Avalanche and Fantom, which successfully brought builders to their ecosystems:
- Attract new lender capital, borrowers, and managers to the TrueFi Lending Marketplace
- Grow protocol earnings by 50%, via allocating capital from lower utilization pools to higher utilization portfolios which generate protocol fees for TRU (50bps per annum on loan originations to TRU treasury)
How will we measure success? We will track the following metrics to assess whether this program achieves its objectives:
- Increase total utilization from current 55% to >75%
- Grow current loans outstanding from $500M to ~$1B
- Increase protocol earnings by 50%
"Beta Test" Timeline:
Implementation of this program would start in the next 2-4 weeks as the first new pools (“portfolios”) launch and would be expected to run for 100 days, roughly through May 2022. This initial allocation of 8M TRU will provide a means to “beta test” rewards models in the Marketplace and subsequent governance discussions will determine specific allocations among the marketplace pools / portfolios.
- Pulse Check (now): Get community feedback and gauge community feedback through this post.
- Snapshot Vote (this week): If there’s sufficient support from this pulse check, the proposal will move to a Snapshot vote this week.
- Implementation (Feb - May): If a Snapshot vote passes, the proposed incentive program would kick off as the first new pools launch around early Feb and continue through May.
- If the program is successful in achieving its outcomes, governance could decide to expand or extend the program through subsequent Snapshot votes. If it is not deemed successful, governance could decide to decrease the scale of the program through Snapshot voting.
Budget + Other details:
- The proposed total of 8M TRU represents ~2.1% of the remaining incentive supply (393M), as per the TRU Supply Dashboard by Armanino. 8M TRU represents ~0.6% of total TRU supply (1.4B) and ~$2.5M in USD at current TRU price of $0.30.
- This proposal does not allocate to specific pools but instead sets aside total amount to be directed among pools. Future Snapshot votes will determine specific allocations to each pool.
- Proposal would make adjustments to current pool emissions as follows:
- Expect impact of proposal:
Pulse Check / Poll:
- YES – I like this proposal
- NO – this proposal needs to be reworked
- NO – I am firmly opposed to any incentives for this