[Proposal] A Medium-Term Strategy for Lending Pool Incentives


  1. Launch USDT pool on Friday, June 18, 2021 with TRU incentives of 200,000 TRU/day for two weeks
  2. Decrease TUSD lending pool incentives on Friday, June 18, 2021 to 100,000 TRU/day for two weeks
  3. Decrease USDC lending pool incentives on Friday June 18, 2021 to 200,000 TRU/day for two weeks
  4. We revisit the # of TRU distributed to lenders every two weeks and host a Snapshot vote to update incentives in response to utilization rates

(This should give enough time for this to be voted on and lenders to be made aware)


Going off my earlier post ([Ideas] A longer-term strategy for lending incentives), I want to propose a short/medium-term strategy that will

  • Allow us to add USDT ASAP
  • Begin to tie TRU boosts to utilization

As a starting point, we should ask – why are TRU incentives useful? TRU incentives are most useful and should be highest when we have borrower demand > lending supply. At the moment, specifically in the TUSD pool, we have very low utilization.

As I shared previously (see my comment on this post: [Discussion] Extending tfUSDC + tfTUSD farms / Adding tfUSDT? - #9 by ryan.rodenbaugh), when I polled our borrowers, most had a preference for USDT and were mostly indifferent between TUSD and USDC (though given one or the other, USDC edges out slightly).

Additionally, I recognize that the above distributions are not perfect, but I also know that “perfect” will require more rigorous analysis (to get to the “correct numbers”) or it will require smart contract work to have an incentive system that dynamically adjusts related to utilization. We have not yet had the chance to run the analysis and will not have the chance to do the smart contract work for a while.

As a result, I think revisiting these numbers every other week is a good opportunity to adjust incentives up and down as needed. We can also see about implementing an Allocation Points program like Sushiswap uses (and like Hal mentioned here). I will also work with @tylerw to turn his comment here about decreasing rewards over time into a more detailed proposal


At the moment, we are overpaying for deposits, specifically in the TUSD pool. Rather than taking the TUSD pool to zero, we should begin to temper off rewards over the coming weeks, unless utilization significantly increases. Given the interchangeability of TUSD/USDC and the fact that no borrower has expressed they prefer TUSD over USDC, it might even be optimal if all deposits left TUSD and went into USDC/USDT.


For: You agree with bullets 1-4 above
Against: You want a new proposal for TRU incentives

Snapshot: Snapshot




Hey all, I f’d up my math. The current farms actually end in 2-3 hours around 12pm PST Thursday, June 17. As a result, we’re going to push the updated farms and the USDT pool today.

Apologies for my error and any hassle/confusion this may cause.