# CP116: RWA Lending Market Liquidity Bootstrap **URL:** \ **Category:** Proposals\ **Tags:** cp4, cp2, passed, bootstrap\ **Created:** [June 21, 2024, 9:38pm UTC](https://gov.centrifuge.io/t/cp116-rwa-lending-market-liquidity-bootstrap/6467 "2024-06-21T21:38:53Z")\ **Posts on this page:** 7\ **Page:** 1
**Author:** ![ImdioR](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/imdior/32/1011_2.png) [@ImdioR](https://gov.centrifuge.io/u/ImdioR)\ **Post date:** [June 21, 2024, 9:38pm UTC](https://gov.centrifuge.io/t/cp116-rwa-lending-market-liquidity-bootstrap/6467/1 "2024-06-21T21:38:53Z")
```auto cp: 116 Title: RWA Lending Market Liquidity Bootstrap authors: @Imdior, @GraysonAlto uses-component: cp4, cp2 technical-proposal: yes requires-onchain: yes impacts/modifies: - status: passed date-proposed: 2024-06-21 date-ended: 2024-07-07 ``` ### Short Summary Initiate bootstrap incentive rewards liquidity for the RWA Lending Market on Morpho ### High level objective This proposal is for providing 60,000 CFG incentive rewards to be distributed as rewards for the RWA Lending Market. These rewards will last for 60 days following the launch of the LTF/USDC pair. ### Background The [CP103: Launch an RWA Lending Market](https://github.com/centrifuge/cps/blob/main/cps/CP103/CP103.md) on Morpho was recently approved by the Centrifuge DAO. The bootstrap liquidity is critical during the launch and in order to attract lenders. ### Description of Activity This proposal covers the first 2 months of the initiative, based on the planned amount of CFG to be supplied (1000 CFG per day). It is important to note that lenders in the market not only earn CFG rewards, but baseline borrow interest, and MORPHO token rewards as well. The following table shows what SOLELY CFG reward APYs would look like based on the amount of total market supply. This is at the current price at the time of writing of $0.46 per CFG. ![](https://europe1.discourse-cdn.com/flex013/uploads/centrifuge1/original/2X/2/2a3b7234d852e0f31903071e5ecd73fdf5e40dea.png) Please keep in mind that this is a fixed rate supplied per day, so naturally, the overall reward decreases linearly as TVL increases. A fixed rate per day is the default and recommended structure from Morpho. ### Change or improvement 1. Initiate liquidity bootstrap and provide 60,000 CFG for 60 days once the market launches and deposit these rewards into the RWA Lending Market on the Morpho Rewards Distributor Contract [4eEqmbQMbFfNUg6bQnqi9zgUvQvSpNbUgstEM64Xq9FW58Xv]. 2. Distribute 1000 CFG per day as rewards across the RWA Lending Market on Morpho. ### Alignment to the mission of Centrifuge DAO By creating early liquidity incentives, we will bootstrap early participation in the market which will attract more lenders, borrowers and issuers. By capping the token rewards, weโ€™re limiting the Centrifuge out of pocket cost, while still supporting the initiatives that will help us build key infrastructure around Centrifuge. All of this serves the purpose of helping grow the TVL of Centrifuge, and maintaining our position as the largest RWA protocol. * * * 02-07-2024 The proposal has been submitted on Github as [CP116](https://github.com/centrifuge/cps/blob/main/cps/CP116.md) ---
**Author:** ![The\_Phunky\_One](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/the_phunky_one/32/3288_2.png) [@The\_Phunky\_One](https://gov.centrifuge.io/u/The_Phunky_One)\ **Post date:** [June 24, 2024, 4:42pm UTC](https://gov.centrifuge.io/t/cp116-rwa-lending-market-liquidity-bootstrap/6467/2 "2024-06-24T16:42:37Z")
I hope I have some assets I can lend out on Morpho so I can earn more CFG! ---
**Author:** ![GraysonAlto](https://avatars.discourse-cdn.com/v4/letter/g/ad7895/32.png) [@GraysonAlto](https://gov.centrifuge.io/u/GraysonAlto)\ **Post date:** [June 24, 2024, 8:43pm UTC](https://gov.centrifuge.io/t/cp116-rwa-lending-market-liquidity-bootstrap/6467/3 "2024-06-24T20:43:14Z")
Simply USDC will do ๐Ÿ™‚ ---
**Author:** ![Tradesman](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/tradesman/32/2531_2.png) [@Tradesman](https://gov.centrifuge.io/u/Tradesman)\ **Post date:** [July 2, 2024, 3:42pm UTC](https://gov.centrifuge.io/t/cp116-rwa-lending-market-liquidity-bootstrap/6467/4 "2024-07-02T15:42:19Z")
๐Ÿ› This is critical next step for broad US market adoption.๐Ÿš€ ---
**Author:** ![Rhano](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/rhano/32/1014_2.png) [@Rhano](https://gov.centrifuge.io/u/Rhano)\ **Post date:** [July 2, 2024, 5:22pm UTC](https://gov.centrifuge.io/t/cp116-rwa-lending-market-liquidity-bootstrap/6467/5 "2024-07-02T17:22:38Z")
Council Motion 97 was submitted and passed in the Centrifuge council. Referendum 59 is now live for all CFG token holders to vote on. If passed, this will approve a treasury funding of 60,000 CFG to be paid out in the next spending period which starts at block #5,846,400 (currently around 17.30 CET on Sunday). ๐Ÿ—ณ Vote in the portal: [CP116: RWA Lending Market Liquidity Bootstrap](https://polkadot.js.org/apps/?rpc=wss%3A%2F%2Fcentrifuge-parachain.api.onfinality.io%2Fpublic-ws#/democracy) ๐Ÿ—ณ Vote on SubSquare: [CP116: RWA Lending Market Liquidity Bootstrap](https://centrifuge.subsquare.io/democracy/referenda/59) ---
**Author:** ![Rhano](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/rhano/32/1014_2.png) [@Rhano](https://gov.centrifuge.io/u/Rhano)\ **Post date:** [July 15, 2024, 10:26am UTC](https://gov.centrifuge.io/t/cp116-rwa-lending-market-liquidity-bootstrap/6467/6 "2024-07-15T10:26:36Z")
[Referendum 59](https://centrifuge.subsquare.io/democracy/referenda/59?tab=call) for CP116: RWA Lending Market Liquidity Bootstrap passed at block #5841125 (7th July 2024 at 6.51 am CET) and the funds were already transferred to the Morpho Rewards Distributor Contract (4eEqmbQMbFfNUg6bQnqi9zgUvQvSpNbUgstEM64Xq9FW58Xv). ![image](https://europe1.discourse-cdn.com/flex013/uploads/centrifuge1/original/2X/5/51c9dc74d88df84a66150cc5e5b6e0e20d53710d.png) Thank you for voting everyone! ---
**Author:** ![ImdioR](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/imdior/32/1011_2.png) [@ImdioR](https://gov.centrifuge.io/u/ImdioR)\ **Post date:** [July 17, 2024, 2:06pm UTC](https://gov.centrifuge.io/t/cp116-rwa-lending-market-liquidity-bootstrap/6467/7 "2024-07-17T14:06:03Z")