[Proposal] Reduce TRU emissions & wind down tfUSDT pool

Authors: @tylerw @ryan.rodenbaugh

Summary

Reduce TRU emissions across all DAO pools as TrueFi plans to move loan activity towards TrueFi Capital Markets and future pools. This proposal would reduce daily TRU emissions by 147,500 TRU/day.

Rationale

Given current market conditions, there is weak demand for lending via the existing DAO pools and it does not seem prudent to write new loans from these pools.

As of today Nov 21 2022, there is only one loan currently outstanding in the DAO pools: the $5.5mm loan to TrueTrading in tfUSDC. Utilization for tfUSDT, tfTUSD, and tfBUSD pools are 0%.

TrueFi may be best served by reducing emissions today and focusing on bringing quality opportunities to lenders via TrueFi Capital Markets portfolios over the coming months. Getting lenders comfortable with the present risks of lending to market makers will be an uphill battle, but contributors are working to onboard a portfolio manager to run this strategy as this is the market with the most demonstrated historical success. At the same time, we are actively onboarding lower risk portfolios, as well.

At a future date TrueFi could reintroduce DAO pools to serve more of a “fund of funds” type model, but for the time being this does not seem like a useful function.

Proposal

  • Decrease tfUSDT emissions from 89,500 TRU/day to 0 TRU/day immediately
  • Decrease tfBUSD emissions from 20,000 TRU/day to 0 TRU/day immediately
  • Decrease tfUSDC emissions from 48,000 TRU/day to 10,000 TRU/day
Do you support this proposal?
  • YES
  • NO

0 voters

1 Like

@tylerw @ryan.rodenbaugh

" Nov 21 2023" correction required✌🏽

Thanks, good catch – fixed now

1 Like

Supporting. With the current market, it does not make sense to keep emitting TRU here.

Snapshot vote is live for this proposal. Voting runs today through next Monday, 5 Dec 800 UTC.
https://snapshot.org/#/truefigov.eth/proposal/0x8f81a55773d064d83bdad3bc74ce2ab698f484e7e3320edf841e3913244771e5

1 Like