- 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.
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:
- 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.
Inspiration / References
- Balancer’s [Proposal] BAL for Gas