Authors: Ryan Rodenbaugh and Tyler Wallace
Summary:
Decrease total LP emissions by 17.5% from 500,000 to 412,500 TRU/day
- Decrease TUSD by 37,500 TRU/day to 62,500 TRU/day
- Decrease USDC by 0, keeping it constant at 200,000 TRU/day
- Decrease USDT by 50,000 TRU/day to 150,000 TRU/day
These changes will go into effect around 11:00 am PST on Thursday, July 1, 2021.
Background:
Keeping with the cadence laid out two weeks ago, 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.
Other good proposals were made this week, including MoreNapalm’s and some of us believe he makes good long-term proposals, but would be too drastic of a change for lenders to implement currently. In line with many of Napalm’s points, over the next two weeks, we will share specs for longer-term proposals including
- Adding a Curve gauge-like function for TrueFi,
- An update on the proposal allowing borrowers to stake TRU,
- A model for decreasing TRU incentives over time,
- Providing lender rewards in stkTRU
Motivation:
- Recent community sentiment has supported lower incentives to lenders
- Boosted rewards were intended to last for a limited time to promote the launch of the tfUSDC and tfUSDT pools – as we reduce incentives, we are returning towards a sustainable TRU incentive model
- Interest rates across DeFi markets have also compressed recently, meaning TrueFi can stay competitive with lower rates (current APYs in lending pool farms are 16-20%; this proposal targets lending pool APYs in the 12%-16% range)
Specification:
For: You agree with bullets 1-3 above
Against: Keep current incentives as is
Snapshot: Snapshot
