[Proposal] Sept 9 - Sept 23 TrueFi LP Incentives

Proposals
1

Authors: @tylerw , @ryan.rodenbaugh

Summary

Decrease total LP emissions by 5% from 300,000 TRU/day to 285,000 TRU/day.

  1. Decrease total tfTUSD emissions by 2,500 TRU/day to 32,500 TRU/day.

    • Shift incentive emissions to 70/30 between tfTUSD in the liquidity gauge and legacy tfTUSD, as part of the ongoing tfTUSD pool migration.
    • 22,500 TRU/day to tfTUSD in liquidity gauge
    • 10,000 TRU/day to legacy tfTUSD farm

  2. Decrease tfUSDC by 10,000 TRU/day to 160,000 TRU/day

  3. Decrease tfUSDT by 2,500 TRU/day to 92,500 TRU/day

These changes will go into effect around 11:00 am 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
  • TrueFi originated >$200M in new loans during August, creating significant protocol value from recent capital inflows.
  • While utilization rates remain low (33%), this proposal aims to reduce rates incrementally so as to bring utilization near target (60-70%) while also maintaining larger pool sizes that enable TrueFi’s growth.
    • tfUSDC (~30%) well below target utilization
    • tfTUSD (~30%) well below target utilization
    • tfUSDT (~40%) moderately below target utilization
  • Interest rates across DeFi stablecoin markets remain low (4-5%)
  • Adjusting emissions gradually based upon utilization rates helps us test and build a sustainable, long-term model for TrueFi lender incentives

Specification

For: You agree with bullets 1-3 above

Against: Keep current incentives as is

Snapshot vote: Snapshot

1 Like
2

nice hello. I see this as a good project but little known. I would like the management to make the crypto community more aware that it is the very small investors who catch the Tru token.