I have to think small to medium sized LPs even ones who see the value in TrueFi bringing a massive TradFi asset class to DeFi are not engaging with the protocol due to being priced out by gas fees.
Anyone who has staked, farmed or traded on Solana or BSC will know that you can carry out your activities for <2$ not 100-200$ and is a big difference when you are moving a few thousand dollars around.
Does the team or the community at large have any thoughts on becoming multichain / chain agnostic ?
Alternatively is there any plans to move voting or other aspects to L2 ?
Given what is on the team’s roadmap for 2021 moving to BSC seems quite unlikely. Further, the team has suggested it wants to decentralize the project - which would also make it difficult to go to BSC.
Alternatively, it seems more likely that TrueFi could try to leverage optimistic rollups until Eth 2.0 is released.
I would agree that TrueFi is likely missing out on small to medium sized LPs. I don’t think it’s likely there is short term solution until Eth improves its gas cost problems.
I agree here! Optimistic rollups is the way to go. With Maker, Uniswap, Synthetix and Aave aiming for it, no point moving to a centralized chain like BSC at all. However, I think this should not be a priority at the moment. I still think focusing on getting a higher TVL and more loans is the main goal in the next 3 months and then we can worry about scaling.
I think it makes sense to enable small and medium sized LPs to interact with the protocol. Optimistic rollups seem to be a good strategy to solve the problem with gas fees for small/medium sized LPs. Adding the provision for lending stable coins like USDC would also help increase such involvement since as it minimizes gas fees lost on swapping USDC for TUSD.
Rollups and l2s will likely be supported in phase 4-5. I’m in favor of Optimism, which launches Q3-Q4.
I was thinking for a short term solution, wrapping tfTUSD farm deposits into an ERC-20 and depositing it into Loopring could allow people to buy and hold tfTUSD (with farming incentives), then sell it to someone who is willing to take it back to layer 1. The AMM on loopring should set a fair market price if there is enough liquidity provided.
The Loopring AMM idea is pretty awesome, that seems like it would be pretty fast & relatively safe to implement. Seems like something similar could be used on Sushiswap as well (though the fees would be higher)? The question is whether there will be enough liquidity.
Seems quite wise that L2s aren’t until phase 4 or 5. Having looked through Optimism code base, it really seems like it has quite a ways to go before it is production ready. Hopefully Uniswap can help them work through all the issues before TrueFi starts integrating it.