TrueFi’s tfUSDC and tfTUSD pools have shrunk considerably in size as of lately. Current TRU incentives have not attracted new capital or maintained capital in these pools, thus do not seem to be an effective use of TRU.
Reducing emissions can give the DAO a longer runway and bring TrueFi closer to sustainability. Below is my proposal for starting this process.
Reduce total TRU farming emissions by ~30% as follows:
- Decrease tfUSDC emissions from 120,000 TRU/day to 60,000 TRU/day
- Reduce tfTUSD emissions from 27,000 TRU/day to 10,000 TRU/day
- Leave tfUSDT and tfBUSD emissions as-is (current utilization rates in these pools are >90%)
As we go along, we can further adjust emissions depending on loan activity within these pools. In the past, TrueFi has aimed to maintain target utilization rates of ~70-80%.
Please let me know your thoughts. If there’s support for these changes, I’d like to move this proposal to Snapshot tomorrow and enact these changes by end of week.