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The AAVE community is split over a proposal by TrueUSD to incentivize TUSD-holders to participate in the AAVE market through liquidity mining rewards. The debate centers on the quality of TUSD as an asset and the potential benefits of the proposal, with the final decision still pending.
The discussion revolved around the proposal by TrueUSD to include TUSD in the AAVE liquidity mining program1. TUSD, a stablecoin with a market cap exceeding $1.2 billion, has been part of AAVE's V2 market with a size of over $23.6M. The proposal suggested incentivizing TUSD-holders to participate in the AAVE market and its governance by providing liquidity mining rewards. Two incentive schemes were proposed: either adding more stkAAVE in each block to include LM rewards for TUSD lenders and borrowers, or maintaining the existing LM reward distribution while restructuring it to include rewards for TUSD holders.
The proposal received mixed reactions from the community. OldGeek90 and MG-Lee supported the proposal, believing it would benefit the community as a whole2,3. However, Aavenger disagreed, arguing that TUSD is not a high-quality asset and that there are no reasons for Aave to incentivise TUSD deposits or borrowing4. Zyx found the proposal reasonable and felt that TUSD is underestimated5.
In conclusion, the community is divided on the proposal to include TUSD in the AAVE liquidity mining program. The discussion highlighted the potential benefits and drawbacks of the proposal, with some members supporting the idea and others expressing concerns about the quality of TUSD as an asset. The final decision on the proposal is yet to be made.
Posted 3 years ago
Last reply 2 years ago
Summary updated 2 months ago
Last updated 03/12 08:01