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TrueFiTrueFiby0x46dFcBc2aFD5DD8789Ef0737fEdb03489D33c428rattlecage.eth

Incentivize a tfUSDC/USDC liquidity pool

Voting ended over 3 years agoSucceeded

Summary

Divert 10% of tfUSDC Farm rewards to a low fee tfUSDC/USDC liquidity pool.

OR

Divert 18% of tfBUSD and 18% of tfTUSD Farm rewards to a low fee tfUSDC/USDC liquidity pool.

This will redirect approximately 4,368,000 TRU a year.

Balancer V2 is the preferred option for this pool.

Motivation

The current liquid exit system is complex, unreliable and encourages bank runs. I propose a liquidity pool as a better alternative.

Projected impacts

-The liquidity pool should grow into the high millions, providing a deep secondary market and ensuring people can always sell their tfUSDC.

-Based on the current pool, I project a roughly 0.15% reduction in APY from USDC dilution. Roughly 0.3% of APY is being redirected to the liquidity pool, roughly half of which is USDC and half of which is tfUSDC.

-Increased usability of the liquidity pool should increase fees from trading, which counteracts the APY reduction.

Off-Chain Vote

Approve, Divert tfUSDC TRU
12.91M TRU74.4%
Approve, Divert tfBUSD/TUSD TRU
4.45M TRU25.6%
Reject
0 TRU0%
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Discussion

TrueFiIncentivize a tfUSDC/USDC liquidity pool

Timeline

Jul 20, 2022Proposal created
Jul 21, 2022Proposal vote started
Jul 28, 2022Proposal vote ended
Feb 24, 2025Proposal updated