[Proposal] Fix SushiSwap liquidity so BoogieBoogie can get his TRU/ETH back

Proposals
13

Folks, some updates from the Sushiswap side:

  1. TRU rewards for the current Sushi LP design continue to accrue even when there is no TRU in the incentive pool, effectively creative “TRU debt” for the TRU/ETH pair. TRU in the incentive pool is only claimed at the time an LP exits the pool, which is how @boogieboogie found themselves stuck: there wasn’t enough TRU in the incentive pool to cover their earned TRU.
  2. There is indeed a new Sushi rewarder design that is available to our TRU/ETH pair.
  3. A migration to this new design is only possible if and when there is adequate TRU in the incentive pool to cover all outstanding “TRU debt” accrued in the Sushi pool to date. As of Aug 13th, that sum is 1,102,157 TRU.
  4. To date, TRU Governance has approved funding Sushi TRU incentives to the total of 606,492 TRU. We did not know about point #2 until after this refill was approved.
  5. This amount of TRU incentive funding will allow @boogieboogie and presumably some other LPs to exit the TRU/ETH pair (TRU in the incentive pool is distributed first come, first served at the moment of pool exit), but it will not be adequate (by ~500k TRU) to allow us to migrate the TRU/ETH pool to the new, “won’t get stuck again” design.

As such, because we’d like to avoid this issue coming up again later, here’s a proposed path:

  1. We refill the pool with the already-approved 606,492 TRU immediately, letting some of the LPs exit.
  2. We turn off TRU rewards for the Sushiswap TRU/ETH pool, so TRU debt does not continue to accrue while we proceed with the next steps in the solution.
  3. We put forward another governance motion to request the approximately 500k TRU needed to complete Sushi LP migration.
  4. We fund the current pool, clear the TRU incentive debt, and migrate to the upgraded Sushiswap rewarded contract.
  5. We can choose to turn TRU rewards back on for the TRU/ETH pair in the new pool.

How do we like this solution? What alternatives do you see, or would like to discuss?

Possibly the harder, more important question: Is there another DEX you’d prefer we migrate liquidity to? If so, which one? I bring this up because I know we’re considering Balancer for a tfUSDC/USDC pool, and wonder if it makes sense to consider our Sushi support, too.

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