[Proposal] Growing Borrower Activity with TRU Incentives

Original authors(s): RDharia Forum Proposal (Detail): https://forum.truefi.io/t/proposal-growing-borrower-activity-with-tru-incentives/542

Background: Though TrueFi has recently hit the $100m loans originated milestone, the rate of growth for new loans has slowed. It’s clear from borrower conversations that demand for new loans has reduced proportionally to the rise in interest rates.

As borrower activity is key to TrueFi’s short term (APYs) and long term (defensive moat) health, this proposal aims to incentivize new borrower applications and make our loans more attractive to existing borrowers.

Proposal: Borrower TRU Incentives The following proposal aims to increase new borrower applications and new loan applications for existing borrowers while maintaining high lender APYs, and cultivating “loyalty” (through TRU token holdings & repayment histories) among borrowers.

This proposal requests 1m TRU from the TrueFi incentive pool to be allocated to borrowers who borrow the next $100m on TrueFi (see current TRU token allocations here). Details below:

• This incentive program is open to any new or existing borrowers. Under this program, borrowers will receive incentives equal to 1% (100 basis points) of the principal loan amount. For example: $1mm loan would receive 10,000 TRU.
• TRU Incentive on any one loan cannot exceed a maximum of 40,000 TRU ($4mm principal loan amount).
• TRU Incentive is sent to the Borrower only upon successful loan repayment.
• TRU Incentive program will end at the earlier of the next $100mm in funded loans (1mm TRU) or September 30th, 2021.
• TRU Incentive program subject to early termination if the total ‘cost of debt’ net of TRU incentive is deemed too low based on prevailing market rates.

If approved, borrower incentives begin on approximately May 20th - at the same time origination fees are slated to end).