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cp title authors contributors proposal-type date-proposed date-ended status
40
Updating Tinlake Rewards Allocation 2023-03
Governance and Coordination Group (ImdioR, Rhano)
CP4 technical
2023-01-03
2023-17-04
passed

Short Summary

Renewal of incentive rewards for Tinlake

High-level objective

This proposal is for minting 1,900,000 CFG into the Tinlake rewards account. Change the TIN rewards rate and keeping the same rewards rate for DROP, AO as before.

Background

To date, a total of 25,290,526 CFG has been awarded to both AOs and LPs on Tinlake. Currently, only CFG 900,000 is available to be distributed to Tinlake investors, which means we are nearing the end of the current rewards allocation. With the current TIN/DROP rewards rate and TVL, these awards will last approximately for the next 30-35 days. Tinlake Rewards Overview.

The recent partnerships drastically increased the TVL so in order to avoid reward deficit, the Governance & Coordination Group would like to propose minting additional rewards, that should cover:

  • The possibility of onboarding new pools. The additional small margin of CFG tokens will cover any new onboarding or fast-increasing Tinlake TVL.
  • Taking the governance process (off-chain and on-chain voting) into consideration

Detailed description of the proposal:

We would like to propose to mint and allocate an additional 1.9M CFG towards Tinlake liquidity rewards, change TIN rewards rate 0.000225 CFG/DAI per day and keep the same rewards rate for DROP/AO Council motion 18.

Minting these tokens will cover the rewards for the next ~90 days with the current rewards rate and TVL. It will also both keep the inflation under 2.5% and allow us to remain responsive to external market conditions.

Proposal Parameters:

The proposal being put forward is the following:

1. Mint 1’900’000 CFG into the rewards account ( 4dpEcgqJNczMyoTnUuFTyTLSe5RuoSSoGZMqu3L6fvc8jBbd )
2. Set the rewards rate for TIN at 0.000225 CFG/DAI per day
3. Keep the same rewards rate for DROP at 0.0003 CFG/DAI per day
4. Keep the same rewards rate for Asset Originator rewards at 0.0000 CFG/DAI per day

Change or improvement:

  • Mint approximately 1’900’000 CFG into the rewards account
  • Set the rewards rate for TIN at 0.000225 CFG/DAI per day

Responsible to implement:

Governance and Coordination Group (ImdioR, Rhano)

Alignment to the mission of Centrifuge DAO:

Minting requested tokens as rewards will help to support the overall goals and objectives of the protocol. For Lenders on Tinlake, this will provide an opportunity to earn a return on their investment, which in turn will ensure that borrowers can still access capital transparently and cost-effectively.

Link to the RFC on the Forum: https://gov.centrifuge.io/t/rfc-updating-tinlake-rewards-allocation-2023-03/5213

Link to the Opensquare Snapshot: https://voting.opensquare.io/p/128

Link to the onchain vote (council motion + referendum): https://centrifuge.subsquare.io/council/motions/61