Great proposal and one we definitely need to become a trusted lender. As mentioned here
a) The current company unlocked tokens stand at around 15 million USD (54 million) which is still lower than the amount of loan volumes TrueFi is doing. In my opinion, at least 80% or around 12 million USD (42 million tokens) should be added to SAFU insurance which will be around 20% of the current loan volume which is a good number to start with. Rest of the company funds unlocked tokens should be also allocated in this way (80% of each unlock). This will reduce the maximum circulation supply by locking funds into the insurance fund by ~ 120 million tokens as these will be reserved for SAFU pool, and bring around 36million liquidity in USD at current rate. In my opinion, this is the best way to utilize the company funds towards assuring lenders as well as TRU holders who will have more confidence staking their TRU or providing liquidity to tfUSD, and since idea of company funds is to better serve the TrueFi product, this is the best way to use them
b) A portion of TRU emission from both sushiswap and tfUSD pools should be added to the SAFU funds. These pools have one of the highest emissions and have a responsibility to atleast benefit TrueFi lenders and platform in some way. In my head, that is by directing a part of rewards to the TRU insurance fund. I think this return is justified as market makers are still getting a good APY but a part of rewards are being used to insure them indirectly as if TrueFi undergoes a default, TRU price suffers and Marketmakers incur huge losses. Hence for them to pay a reasonable fee to insure the TRU protocol only makes sense. This also reduces the emission of TRU slightly but as Sushi token rewards are being added the net APY won’t go down much.
c) A portion of Governance Stake TRU rewards should be added to the SAFU pool, I think this is what AAVE does and makes sense to contribute a part of governance rewards to insurance funds. We can have the TRU rewards contributed to SAFU not have a vesting cycle as they are only going to be used in emergency situation, and the rest of the TRU rewards for takers be vested (as we are discussing increasing emission for TRU by 16x for governance model)
Thoughts of the team in this matter?