As part of the TrueFi V4 launch, all current lending pool farm incentives will be migrated to the Liquidity Gauge next Thursday, August 26th. This model greatly simplifies farming TRU, replacing the existing farms for tfTUSD, tfUSDC, and tfUSDT. Beginning August 26th, lenders can stake any of the lending pool tokens into the Liquidity Gauge to earn farm rewards as outlined in this blog post.
TrueFi will begin migrating the existing TUSD pool & tfTUSD farm (which will now be called the “legacy TUSD pool” and “legacy tfTUSD farm”) to TrueFi’s more scalable and more secure V2 lending pool design also starting next Thursday, August 26th. As highligted in this blog post, the upgrade will bring TrueFi’s TUSD pool onto the upgraded pool contract framework used by tfUSDC and tfUSDT.
Proposal:
Reimburse gas costs for users who need to migrate funds. Recipients would include:
tfUSDC and tfUSDT lenders who migrate from the existing tfUSDC and/or tfUSDT farms to the new liquidity gauge
Legacy tfTUSD lenders who migrate to the new tfTUSD pool and liquidity gauge
Reimburse gas rates in a fair, easy-to-understand fair structure
Reimburse X gas per lending pool migration (where X = 90% of expected total gas fees)
Reimburse Y gas per farm pool migration (where Y = 90% of expected total gas fees)
For converting gas to TRU, use the median gas price during the week (up to a max of 40 gwei) and the TRU/ETH price from CoinGecko for the week
Points for discussion:
Pros:
Providing reimbursements helps users with small balances continue to participate in TrueFi.
Reimbursements should reduce friction for migrations and ensure that a high % of funds move from to the new liquidity gauge and to new tfTUSD.
Concerns / Questions:
Setting up such a reimbursement program may be tricky to implement and take significant time / resources from TrueFi’s contributors.
Bad actors may be able to game the system. This proposal should not incentivize users to make transactions when gas is most expensive and should not enable users to recoup >100% of their gas costs.
Bad ROI: small wallets that migrate may incur far higher costs in gas fees (and TRU reimbursements) than they are worth through a financial lens.
Next steps
Establish expected gas costs (denoted by X and Y above). Once contracts are live, devs can provide the expected amounts of gas used for each transaction and we can set the flat-rate reimbursement amounts for each migration. If rates do not vary widely between USDC/TUSD/USDT, my recommendation would be to set flat-rates that apply to all pools.
Determine total TRU budget to allocate to this program. This number will be based upon the expected gas used per transaction and the expected number of migrations across TrueFi pools.
I have to say that I like this idea. UMA does this for governance voting and they use a disperse.app function call to efficiently distribute the reimbursed UMA direct to everyone’s wallet at a low per-user gas cost. It should be relatively simple to make a query to see which wallets migrated and then disburse the TRU. So I don’t see this as especially complicated to implement and certainly a goodwill gesture to the lending community, some of whom may have relatively modest amounts that they intended to leave in the vault a year or more.
Maybe set a deadline that you have to migrate within ten days to get your gas reimbursed (that’s two weekends to try to catch low gas prices).
But in general, I would try to discourage these kinds of migrations. I’ve seen on another project where over $10 million of value was in a deprecated pool for over four months. I’m not sure what happened to all these people, but the project was going to deprecate the interface, meaning that those people would have to do a smart contract call on Etherscan to get their money back. So please don’t deprecate the interface if you want to see those investors participating again.
One comment I would say if you anticipate this kind of thing happening, to build a self-destruct mechanism into the next version of the vault smart contract so that it can return any money beyond a minimum that’s outstanding after the vault is deprecated after a reasonable time period.
Farm rewards are slated to migrate tomorrow around 11am PT and I’d like to get a snapshot proposal up for reimbursements live before then. Let me know whether you think the revised proposal below is a good idea:
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Revised Proposal
Goal:
Reimburse ~90% of gas costs (at up to 50 Gwei) for users who complete any of the following migrations:
legacy tfTUSD pool → new tfTUSD pool & liquidity gauge
existing tfUSDC farm → liquidity gauge
existing tfUSDT farm → liquidity gauge
Budget:
Allocate up to 50,000 TRU (~$30,000 USD as of today) towards this program from the TRU supply’s unallocated incentives
Reimbursements will be available to users who migrate within the next 30 days (by midnight UTC 9/25/21), on a first-come, first-served basis. If the allocated TRU does not cover all reimbursements, governance can decide to adjust this program
Proposal details:
Reimburse users in TRU
Amount of TRU received based upon flat gas reimbursements per migration, gas prices at time of migration, and TRU and ETH prices at time of migration. See below for details
Gas reimbursement amounts per migration:
1,470,000 gas per TUSD pool + farm migration
450,000 gas per USDC farm migration
450,000 gas per USDT farm migration
Mechanics:
Gas will be converted to ETH at the median gas price for the day (UTC time) in which the migration was completed, up to a maximum of 50 Gwei
ETH transaction costs will be converted to TRU at the average daily TRU/ETH price across Sushiswap and Uniswap
Eligble users: this program aims to avoid overcompensation (e.g. it should not reimburse someone $100 in TRU for moving $1 worth of tfTUSD). Therefore, wallets must migrate at least 500 tfTUSD, at least 50 tfUSDC, or at least 50 tfUSDT to receive reimbursement
Only 1 migration per token per wallet will be reimbursed (i.e. one wallet moving multiple chunks of tfTUSD only receives one reimbursement)
Reimbursements will be distributed to wallets within 7 days of the conclusion of the program on 9/25/21
P.S. - Running reimbursements like this is inherently complicated, but I’m confident we can run this w/o too much overhead, similar to how we did for the Sushi LP compensation.
Over 90% of funds have now migrated (see the update from Discord I pasted below) and there hasn’t been much talk or support for gas reimbursements.
Given the migration’s progress and success so far, I think there’s less need for this than I anticipated. If we move forward with a reimbursement, I now think it should be smaller scale than what I originally proposed.
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Update on the ongoing migration of TrueFi farms + TUSD pool:
Overall status:
90% of TrueFi funds have been migrated to the new liquidity gauge / multifarm
Over $900M staked is now in liquidity gauge
98% of USDC and USDT pool tokens now staked in the liquidity gauge
TUSD is split 50/50 between the legacy farm and liquidity gauge (as expected, given TRU rewards are split 50/50 btw legacy farm and liquidity gauge)
TUSD has migrated 50/50 to the new tfTUSD pool (as expected given 50/50 rewards split)
there’s now ~$60M in the new TUSD pool (and ~$60M in the legacy TUSD pool)
I left you a thumbs up in the discord, hoping that would be enough to signal my support. I am a small-time liquidity provider (14000 TUSD) and TRU staker (3000 TRU). This migration is cost-prohibitive for me. I entered my tfTUSD position through Uniswap to save on the exorbitant gas fees that would otherwise disproportionately eat at my returns. I am truly trying to save wherever possible because it does make an impact for me. Going into my position, I wanted to allocate capital to both TUSD and truefi for diversification purposes, away from other stablecoins and platforms, for a long time horizon. Deposit & forget.
Under current conditions, I’m slated to generate $450 interest in another 11 months. That’s fine if I expect to pay $15 to enter and $50 to exit. But heaping on a migration that costs $200 under ideal network conditions nets me a meager 1.5% interest.
By not reimbursing gas fees, you are setting a prohibitive precedent for small timers like myself.
I’ve created this dashboard to track migrations that would be part of this proposal. As of today, I calculate there have been ~100 completed migrations that would be eligible to receive ~20k TRU in total through the proposed program.
In the Snapshot I’ve proposed that we allocate up to 40,000 TRU in total for migrations made by November 1, 2021.
I do not get to be reimbursed under these terms. This is totally fine, its like 2 dollars of value to move, and like 800 to do it. What will actually happen to these funds? they just stuck forever?
Hi Tyler: Has a more definitive date been set for the reimbursements now? Just trying to insure I check my account at the appropriate time to insure everything worked.
Hey @Push – yes, reimbursements will go out by next Monday. Thanks for checking in. The legacy tfTUSD farm is just now winding down, and so the reimbursements will be sent soon.
Reimbursements will be distributed to wallets within 7 days of the conclusion of the program at 11/1/21 0:00 UTC
As outlined in the program proposal, we’ve recorded the wallets that made migrations before Nov. 1 and are preparing to send out TRU reimbursements. You can check your calc’ed reimbursement here.
Let me know if anyone has questions. Otherwise, I’ll update again shortly when the reimbursements go out.
I’ve migrated >500 TUSD before the 1st of November, like stated in Snapshot . I did not receive a gas reimbursement though. Is this still work in progress ?
