[Proposal] Oct 22 - Nov 5 TrueFi LP Incentives

Proposals
1

Authors: @tylerw, @ryan.rodenbaugh

Summary

Decrease total LP emissions by ~5% from 256,500 TRU/day to 245,000 TRU/day.

  1. Decrease tfTUSD emissions by 2,000 TRU/day to 25,500 TRU/day.
    • The final legacy tfTUSD loan is due this Sunday, Oct 24. The legacy tfTUSD farm will stop receiving incentives on Nov 1 as announced in the tfTUSD pool migration.
    • 25,000 TRU/day to tfTUSD in liquidity gauge
    • 500 TRU/day to legacy tfTUSD farm
  2. Decrease tfUSDC emissions by 8,000 TRU/day to 132,000 TRU/day.
  3. Decrease tfUSDT emissions by 1,500 TRU/day to 87,500 TRU/day.

These changes will go into effect around 1pm PT on Friday, October 22, 2021, if approved.

Background

Keeping with the cadence started on June 15, we’d like to reevaluate the LP TRU incentives every two weeks to (1) gradually decrease emissions over time and (2) target utilizations near 60-70% for each pool.

Motivation

  • Recent community sentiment has supported lower TRU reward emissions to lenders
  • Current utilization rates are low (~40%)
  • This proposal aims to reduce rates incrementally until TrueFi pools near target utilization (60-70%). Current utilization:
    • tfTUSD (~30% overall) = well below target utilization
    • tfUSDC (~30%) = well below target utilization
    • tfUSDT (~50%) = slightly below target utilization
  • Base interest rates across DeFi markets remain relatively low for stablecoins (~6% on Aave/Compound)
  • Adjusting emissions gradually based upon utilization rates helps us test and build a sustainable, long-term model for TrueFi lender incentives

Specification

For: YES, implement proposal
Against: NO, keep current incentives

Snapshot: Snapshot