Past governance proposals
Some governance proposals were made in the past with the aim of improving the development of the Tetu protocol. As the protocol grows and new demands emerge, more governance proposals are expected to be put to a vote by the community.

Protocol Owned Liquidity

The automated yield aggregation and distribution is an interesting concept capable of providing a new investment management experience for Yield Farmers.
With the previous solutions of old challenges and the progress of the Tetu protocol the Yield farming experience in Tetu got even more interesting and the community presented solutions to problems that took on higher priorities, such as the low liquidity of the native TETU token.
Lack of liquidity is a major annoyance both for investors who want to build a large TETU position and for users who want to take profits or make a new reallocation of capital. A solution was needed to improve TETU's available liquidity. Some options in the governance proposal were presented and the solution chosen by dxTETU holders was to use a part of xTETU buyback to build a protocol owned liquidity position.
The result of this solution is that TETU liquidity will grow over time as buybacks keep happening until slippage is no longer an issue for users.

Diamond Vault

xTETU is the core mechanism of the Tetu system. We realized that Yield Farming's automated profit aggregation and distribution mechanism could be even better with a locking system capable of providing even more profit to users. So dxTETU was conceived as the locking solution for xTETU.
Inspired by the success obtained from the Reward Boosting system, dxTETU was designed in a similar way, providing an environment where users can withdraw the deposited principal at all times, however there is no mathematical sense in not respecting the locking period until the end of its duration. dxTETU holders gain additional dxTETU that are obtained from users who decide to leave the vault before the locking period takes place.
The dxTETU governance proposal decided what the Diamond Vault locking duration time would be, in general the longer the locking period the more opportunities the dxTETU holders will have to get dxTETU from users who leave before the locking duration period.
The locking system creates an environment where long-term commitment to the protocol ends up being incentivized and rewarded, thus dxTETU has also become Tetu's governance token. The commitment to lock xTETU for at least 90 days to ensure protection against loss of principal prevents situations where users buy TETU, or move TETU from LP positions to xTETU to participate in governance proposals and then sell tokens or reallocate to the original position. The result is that dxTETU works in a simple and effective way that avoids governance manipulations.
The dxTETU is a vault that can be used very flexibly by the Protocol, it can be incentivized with xTETU to encourage long-term commitment and active participation in protocol governance, and it can also be used as a vehicle for sharing profits from partnerships.

Reward Boosting System

Tetu's first governance proposal was the creation of the Reward Boosting system. During the launch of the Tetu protocol many TETU rewards tokens were being distributed against an initial liquidity pool that had a very high token price. The result of this initial dynamic was not very surprising, the TETU token was under very strong sell pressure, so that the first users of the protocol were more focused on the price and volatility of the native token, than on the benefits that the protocol could provide through the aggregation of yield farming income.
Thus, the Reward Boosting System emerged as a very interesting idea to add a game theory element to TETU's Yield Farming in a way that provides the user with a balance of options between claim less rewards immediately or wait a little longer and collect all the TETU yield farming rewards with additional reward boosting from other users who claimed earlier. After the implementation of the Reward Boosting System, the TETU token achieved a little more stability and less volatility.
The result obtained by the Reward Boosting System was surprising and with the success of this new dynamic, users can reflect on more options to do with their TETU reward tokens without worrying about huge price instability and earn more rewards from other users who claim too early.
Last modified 18d ago