Authors: @tylerw , @ryan.rodenbaugh
Summary
Decrease total LP emissions by 9% from 330,000 TRU/day to 300,000 TRU/day.
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Decrease total tfTUSD emissions by 10,000 TRU/day to 35,000 TRU/day.
In line with the tfTUSD pool migration starting on 8/26, incentive emissions will be split 50/50 between the legacy tfTUSD farm and tfTUSD in the liquidity gauge.- 17,500 TRU/day to legacy tfTUSD farm
- 17,500 TRU/day to tfTUSD in liquidity gauge
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Decrease tfUSDC by 15,000 TRU/day to 170,000 TRU/day. Farm emissions will be migrated to the liquidity gauge, starting 8/26 at 11am PST.
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Decrease tfUSDT by 5,000 TRU/day to 95,000 TRU/day. Farm emissions will be migrated to the liquidity gauge, starting 8/26 at 11am PST.
If widely supported, the proposed changes will go into effect at approximately 11:00 am PST on Thursday, August 26, 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 is slated to originate >$80M in new loans this week, creating significant protocol value from recent capital inflows.
- While utilization rates remain low (33% currently), 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%) well below target utilization
- tfUSDC (~30%) well below target utilization
- tfUSDT (~40%) moderately below target utilization
- 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
