Tokenomics Moonshot

Ideas
1

Posting here an idea for TRU to becoming a “gas” for all TrueFi protocol related activity at some point in the future.

Abstract

I would like to ignite the discussion around utilization of the TRU token as a utility within the TrueFi protocol. By doing so, we may leverage the benefits of upper layer technology - like incoming zksync layer 3 or Optimism Stack and provide proper tokenomics to the protocol.

Motivation

The zkSync Layer 3 or Optimism OPstack technology allows for high-speed, low-cost transactions that can be completed in real-time. This is particularly useful for the TrueFi protocol, which is built on the Ethereum blockchain and requires fast, efficient transactions in order to function properly.

By utilizing the TRU token as a utility within the TrueFi protocol we could provide additional value to the TRU token.

Details

General target mechanism ELI5 is simple; if you want to do anything on TrueFI protocol you need to pay with TRU tokens for the operations. Want to create a Vault? Pay with TRU. Want to lend into? Pay with TRU. Under the hood obviously user could be paying with stablecoins, that would be sold for TRU to pay. Used “TRU gas” could be burned or returned to the DAO Treasury.

To implement this proposal in the future, we will need to make the following changes to the TrueFi protocol:

  1. Add support for the TRU token as a utility within the protocol. This will allow users to pay for certain services or actions within the protocol using TRU.

  2. Integrate the Zksync layer 3 technology or Optimism stack with the TrueFi protocol. This will enable high-speed, low-cost transactions using TRU or other custom ERC-20 tokens.

  3. Update the documentation and user interface to reflect these changes and provide clear instructions for using TRU within the TrueFi protocol.

This proposal might have the potential to greatly benefit both the TrueFi protocol and the TRU token, and I look forward to the community’s feedback.

If you look at what dYdX is doing with their migration to Cosmos - this would be a similar move(but staying within Ethereum ecosystem). The reason dYdX is migrating is because StarkWare did not allow them to use their token as gas…

Timeframe

This is by no means “two weeks”, realistic timeframe for deep ZkSync layer 3 or Optimism Stack productional integration is Q2 2025 the earliest.

Disclaimer

Nothing will work if we do not get TVL into the protocol, and if are not able to drive activity to the protocol.

This is, and should be our 100% priority over moonshots like this.

4 Likes
2

I like where this is going! For this full-protocol implementation, would it require new users to bridge TRU (and all other tokens used in the vaults/portfolios/etc.) onto ZkSync layer 3 or OP? If so, could this bringing be done natively in TrueFi?

SNX’s staking process and their bridge, while a separate page, was a pretty seamless process.

https://staking.synthetix.eth.limo/bridge

1 Like
3

Long term, I think users should be able to pay in a variety of tokens(including stablecoins). These tokens could be swapped for TRU behind the scenes to effectively accomplish the same thing, while creating a simpler user experience as they do not have to worry about what tokens they hold.

I believe this is a goal of Account Abstraction. There are also Layer 2s working on this and I suspect it will be fairly easy to integrate into TrueFi once adoption takes off.

1 Like
4

Would it be possible to have [Z]% of “spent” TRU burned (for a deflationary token mechanic) and then [Y]% be sent to the DAO treasury for DAO revenue?

2 Likes
5

How about Vote-Escrowed?

TRU

  • governance voting

veTRU

  • governance voting
  • gauge voting
  • boosts TRU rewards earned on diff products
  • gauge voting bribe yield in Stables, TRU
  • boosting bribe yield in Stables, TRU
  • share of protocol revenue

Reference from ribbon finance

1 Like