[Proposal] Oct 7 - 21 TrueFi LP Incentives

Proposals
1

Authors: @tylerw, @ryan.rodenbaugh

Summary

Decrease total LP emissions by 5% from 270,000 TRU/day to 256,500 TRU/day.

  1. Decrease total tfTUSD emissions by 2,500 TRU/day to 27,500 TRU/day.
    • In line with the ongoing tfTUSD pool migration, incentive emissions will be shifted to 80/20 between tfTUSD in the liquidity gauge and legacy tfTUSD.
    • 22,500 TRU/day to tfTUSD in liquidity gauge
    • 5,000 TRU/day to legacy tfTUSD farm
  2. Decrease tfUSDC by 10,000 TRU/day to 140,000 TRU/day
  3. Decrease tfUSDC by 1,000 TRU/day to 89,000 TRU/day

These changes will go into effect around noon PT on Thursday, October 7, 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 fairly low (43%)
  • This proposal aims to reduce rates incrementally until TrueFi pools near target utilization (60-70%). Current utilization:
    • tfTUSD (~25%) = well below target utilization
    • tfUSDC (~35%) = well below target utilization
    • tfUSDT (~55%) = slightly below target utilization
  • Base interest rates across DeFi markets remain low for stablecoins (~5% 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

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