Incentivize a tfUSDC/USDC liquidity pool
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.
| Voter | Cast Power | Vote & Rationale |
|---|---|---|
 0xCB2C...Ef0c47 | 5.164M | (1st) Approve, Divert tfUSDC TRU, (2nd) Reject, (3rd) Approve, Divert tfBUSD/TUSD TRU |
 0xCAD8...f4f4D3 | 4.582M | (1st) Approve, Divert tfUSDC TRU, (2nd) Approve, Divert tfBUSD/TUSD TRU, (3rd) Reject |
 0x4b1A...24E991 | 4.094M | (1st) Approve, Divert tfBUSD/TUSD TRU, (2nd) Approve, Divert tfUSDC TRU, (3rd) Reject |
 0x7d96...576D34 | 3.119M | (1st) Approve, Divert tfUSDC TRU, (2nd) Reject, (3rd) Approve, Divert tfBUSD/TUSD TRU |
 0x46dF...33c428 | 339,514 | (1st) Approve, Divert tfBUSD/TUSD TRU, (2nd) Approve, Divert tfUSDC TRU, (3rd) Reject |
VOTE POWER
Proposal Status
- Thu July 21 2022, 05:00 pmVoting Period Starts
- Thu July 28 2022, 05:00 pmEnd Voting Period
Current Results
1-Approve, Divert tfUSDC TRU
12.912M
2-Approve, Divert tfBUSD/TUSD TRU
4.447M