RFC: RWA Market rewards proposal Q3

Centrifuge Governance Proposals
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Hi Centrifuge and Aave Community,

We want to request comments on proposed changes to CFG rewards for the RWA Market. We believe the market landscape has fundamentally changed since our last CFG reward proposal and would like to propose the following changes to further iterations.

The RWA Market grew to a total market size of more than $20M. Current market conditions have led to a lot of withdrawals, and ongoing instability in the market means that RWA Market will unfortunately lower borrowing to pools. As of today, the total market size is $10,863,278.42.

The proposal is to:

  • Mint an additional 100,000 CFG for the next 90 days starting 04-07-2022 and deposit these into the Aave Rewards Distributor Contract.

  • Distribute 1111 CFG per day as rewards across the AAVE Centrifuge market.

Please keep in mind that this is a fixed rate, so naturally the overall reward percentage decreases as TVL increases.

Please leave any comments or questions below, so we can discuss before moving on to a poll.

The original post regarding RWA Market rewards adjustments and describing the original proposal in more detail can be found [here].

The poll will remain open for one week, and will pass with a simple majority “yes”.

Future

The RWA Market team is reevaluating the current model and has started discussions around how to adapt the model to work better and provide more liquidity.

6 Likes
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yes I am for this proposal of extended rwa rewards for aave

3

Good day
Agree and support this proposal.
RWA rewards should be extended.

4

i think to create a healthy balance for investors in cfg you need a passive and active rewards mechanism. the lowest risk way to incentive everyone is a burn mechanism.

the goal should be to make sure the total fees attributable per coin is increasing. if you keep issuing coins on a fee base that is flat to decling, the cfg price should go down all else equal.

5

this is to incentivize current investtors to stay in or to attract new investors?

6

This is to incentivize everyone who is investing in the RWA market - whether it is existing or new investors.

1 Like
7

The RWA Market is the first venture of Aave and Centrifuge and with a total market size of 11.1m. This is the first try of Aave to tap into Real-World Assets.

Minting an additional 100,000 CFG incentivises current and new members to keep earning a stable yield and also gives these users the chance to participate in the Centrifuge governance.

2 Likes
8

This proposal has moved to a poll. Usually we would let the RFC stay a bit longer, but given there is a deadline to meet, we would need to speed up the process a bit.

The poll will also run for 3 days (instead of 7) for the same reason.

Please vote in the poll here.

1 Like