[Proposal] Add BUSD Lending Pool on TrueFi

Proposals
1

Authors: @tylerw, @ryan.rodenbaugh, @hal

Summary

This proposal is to add a BUSD lending pool on the TrueFi protocol on November 16th in coordination with the 5th TRU unlock date.

Background

When analyzing stablecoins to add to TrueFi, BUSD is the leading candidate given that it is the third largest stablecoin with over 6.5 billion dollars in supply. In addition, Binance is the largest cryptocurrency exchange in the world with many pairings versus BUSD. Adding this token to TrueFi can allow borrowers to easily borrow funds and transfer them directly to Binance. For the past year, Binance has been a great partner to TrueFi. Binance was one of the first exchanges to list $TRU, a key source of TRU spot trading volumes, and allows for TRU staking via the Binance UI. We hope listing BUSD will be able to deepen our collaborations with Binance.

Goals of adding BUSD lending pool:

  • Diversify stablecoin lending on TrueFi
  • Attract attention from BUSD users
  • Generate further revenue for the protocol

Proposed Options

On launching this new pool, we propose two options to the community for allocating emissions to tfBUSD. The conservative proposal would increase overall lending pool emissions by 5%, targeting 10% APY on tfBUSD @ $50M pool size. The aggressive proposal would increase
overall lending pool emissions by 13%, targeting 10% APY on tfBUSD @ $100M pool size.

This table presents current and proposed emissions (rates in TRU / day):

Current Conservative Proposal Aggressive Proposal
tfUSDC 128,000 120,000 120,000
tfUSDT 89,500 89,500 89,500
tfTUSD 27,000 27,000 27,000
tfBUSD – 20,000 40,000
Overall LP emissions 244,500 256,500 276,500
% change – +5% +13%

Pulse check

Should TrueFi add a new tfBUSD pool to the protocol?

  • NO
  • YES, I support the CONVSERVATIVE proposal
  • YES, I support the AGRESSIVE proposal

0 voters

2 Likes
2

I support the listing of a new pool, for the obvious benefit of adding additional earning opportunities and lending liquidity to the protocol, and the subtle benefit of building a stronger relationship between BUSD & TRU among the Binance crowd.

I’m writing to endorse the aggressive incentives approach, for 2-4 weeks, followed by a taper down once a few BUSD loans are outstanding.

Why:

  • Our current pools are at high utilization, making the money in them harder to move to other pools, meaning more of the inflows are likely to be totally fresh funds.
  • A high APY on BUSD is easier to market and better differentiated versus existing BUSD opportunities, likely to lead to a larger overall increase in TVL - which has a virtuous branding effect on TrueFi and can lead to further investment.
  • With the BUSD pool well supplied, TrueFi can begin rapidly making loans - which will “lock in” the deposited BUSD (reducing exit liquidity for the term of the loan) - and capturing the value of the incentives. This usually takes 2-4 weeks, which is why I’d argue for aggressive in incentives to last at least 2 weeks before tapering down to standard rates aligned with our other pools.
1 Like
3

I voted for aggressive- I can see arguments on both sides but given how strong protocol growth has been recently, and given that this is only a 2 week decision, I think it’s worth taking a large swing and we can always taper down later as we have been doing.

I do think the tapering folks have been doing over the past weeks is very good, and gives us extra tokens to use for launches like this.

4

snapshot proposal is live: Snapshot