[Proposal] Sept 23 - Oct 7 TrueFi LP Incentives

Proposals
1

Authors: @tylerw, @ryan.rodenbaugh

Summary

Decrease total LP emissions by 5% from 285,000 TRU/day to 270,000 TRU/day.

  1. Decrease total tfTUSD emissions by 2,500 TRU/day to 30,000 TRU/day.
    In line with the ongoing tfTUSD pool migration, shift incentive emissions 75/25 between tfTUSD in the liquidity gauge and legacy tfTUSD in the old farm.

    • 22,500 TRU/day to tfTUSD in liquidity gauge
    • 7,500 TRU/day to legacy tfTUSD farm

  2. Decrease tfUSDC by 10,000 TRU/day to 150,000 TRU/day

  3. Decrease tfUSDT by 2,500 TRU/day to 90,000 TRU/day

These changes will go into effect around 12:00pm PT on Thursday September 23, 2021.

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
  • Utilization rates remain low (35%)
    • tfUSDC (~30%) = well below target utilization
    • tfTUSD (~30%) = well below target utilization
    • tfUSDT (~40%) = moderately below target utilization
  • Base interest rates across DeFi markets remain low for stablecoins (4-5% on Aave/Compound)
  • Adjusting emissions gradually based upon utilization rates helps us test and build a sustainable, long-term model for TrueFi lender incentives

Voting

For: You agree with bullets 1-3 above
Against: Keep current incentives as is
Snapshot: Snapshot