I propose that the Uniswap tfTUSD/TUSD LP farm emissions be reduced to 10% of the current emissions rate to 15,669 TRU/day, effective March 15, 2021 (two weeks from today).
When this farm was launched in Nov. 2020, its goal was to provide instant liquidity for users who wished to enter/exit the tfTUSD lending pool. tfTUSD liquidity has drastically improved via Liquid Exit and Uniswap liquidity since launch, and so we should revisit this farm.
How tfTUSD liquidity has improved over the past three months:
- Liquid Exit launched and now enables users to withdraw large amounts of tfTUSD for TUSD with minimal slippage. Liquid Exit has been used for >7M TUSD worth of withdrawals.
- The tfTUSD/TUSD Uniswap pool now holds ~$17M in TVL and is the 32nd largest Uniswap pool as of today. This pool enables users to get instant tfTUSD liquidity at lower gas costs, making it helpful for users who want to withdraw small amounts of tfTUSD.
Given the improvements above, I argue for reducing incentives to the tfTUSD/TUSD LP farm. I believe we can achieve instant liquidity for tfTUSD holders with much lower incentives in this farm. Lowering incentives for this farm seems to align with sentiment expressed in community discussions.
Plus, I believe we can come up with new programs that will do more to grow TrueFi. Perhaps reallocating these emissions to pools with new assets like tfTUSD/ETH or tfTUSD/TRU, or adding tfTUSD/TUSD pools on other platforms like Sushiswap or 1inch would do more to grow the platform? Would love to hear your ideas.
Please vote and add your thoughts to this thread below
If there’s support for this idea, it will move to an official proposal and governance vote.
- Yes, I support reducing emissions to 10% of the current rate
- No - I don’t support this (please share your comments)