Authors: @tylerw @ryan.rodenbaugh
Summary
Decrease total LP emissions by ~5% from 350,000 TRU/day to 330,000 TRU/day.
- Decrease tfTUSD by 10,000 TRU/day to 45,000 TRU/day
- Decrease tfUSDC by 10,000 TRU/day to 185,000 TRU/day
- No change to tfUSDT; emissions remain at 100,000 TRU/day
These changes will go into effect around 11:00 am PST on Thursday August 12, 2021
Background
Keeping with the cadence started on June 15, we’d like to reevaluate the LP TRU incentives every two weeks to (1) try and gradually decrease emission over time (2) target utilizations near 60-70% for each pool.
Motivation
- Recent community sentiment has supported lower TRU reward emissions to lenders
- TrueFi generated >$130M in new loans over the past 7 days, creating significant protocol value from recent capital inflows.
- While utilization rates are currently very low (32%), this proposal aims to reduce rates incrementally so as to bring utilization near target (60-70%) while also maintaining larger pool sizes that enable TrueFi’s growth.
- tfTUSD (20%) is well below target utilization → decrease tfTUSD incentives
- tfUSDC (30%) is well below target utilization → decrease tfUSDC incentives
- tfUSDT (45%) is near target utilization → leave as is
- Interest rates across DeFi stablecoin markets remain low
- Adjusting emissions gradually based upon utilization rates help us test and build a sustainable, long-term model for TrueFi lender incentives
Specification
For: You agree with bullets 1-3 above
Against: Keep current incentives as is
Snapshot: Snapshot