ARC: Liquidation Bonus Updates for AAVE V2 TUSD market

Background

Hello AAVE community! TUSD has been launched on the AAVE V2 market for a while and in September, the TUSD market started to earn stkAAVE distribution since the previous ARC [ARC - Aave V2 - Liquidity Mining Program (90 days at 30% reduced rate)] . We appreciate the support and we’ve seen the stable TUSD holders’ supply on AAVE market and high utilization rate.

As mentioned in the earlier proposal, the stkAAVE reward of TUSD was set as 8.05, which was calculated based on the total market supply of TUSD of 83.39M, as shown in the following figures:

Proposal and Rationale

We propose updating stkAAVE distribution for the TUSD market to 13.42 per day.

We believe this update would be very supportive to AAVE’s growth as well as to the TUSD market on AAVE. According to the most recent data, the TUSD market on AAVE has been seeing continuous, significant growth. Aave V2 market data ( as of November 8, 2021) displayed that the TUSD total supply is currently 156.17M, which generates an 87.27% increase as compared to statistics from the earlier ARC. Based on these metrics, the TUSD supply now accounts for 0.87% out of total AAVE V2 market liquidity, which is a 67% increase as compared with TUSD supply during this ARC.

We propose to update the TUSD sktAAVE rewards to 13.42 per day, which we believe will bring more TUSD-holders, including whales, to increase participation in AAVE market and its governance and hopefully further strengthen the connection between TUSD and AAVE.

Specifications

According to the metrics of Aave V2 market data on November 8, 2021, TUSD supply now accounts for 0.87% of the total AAVE market, which is a 67% increase from the time of this ARC. We would like to propose 13.42 stkAAVE rewards per day for TUSD on AAVE market with the same 33.33%/66.66% lenders/borrowers distribution as it is with DAI, USDC, and USDT.