Responding to a comment George wrote in Discord.
His comment:
The proposal for step 2 is great, love the concept of the badger model.
Regarding the slashing % dynamic, I think that makes it a bit too complicated. Ideally Tru should be focused on a way to increase the treasury with stable coins to support any loan defaults, so we don’t have to worry about slashing dynamics. Then stake the treasury in aave/compound to allow it to grow.
Should also think about doing something similar to the badger model on the borrower side. Like creating a separate staking system just for borrowers to lock their TRU for infinity, in return they get discounted interest rates on their loans based on the TRU value they locked vs the size of the requested loan. Could use tiered levels of (locked tru / loan size) %, to determine discount %. This accomplishes an effective burn of TRU supply and increases token demand. I don’t really see a downside to this as long as its separate from stkTRU.
Regarding your first point, yeah I guess that’s true. I had not really thought that actually. But yes, if the SAFU/insurance fund was so big, it could eliminate the need for staking.
Regarding borrower staking, we have a draft proposal here: [Idea] Borrowers can stake TRU in order to increase their credit limits
Just needs to be built