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”.
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.