Skip to main content

Market Overview

TrueFi Announces A New Comprehensive Roadmap Amidst Growing Demand

Share:

Following its launch on November 21st, 2020, the TrueFi protocol has gained massive traction across the globe, as is best highlighted by their growing TVL which is now approaching $50 million and a total of $45 million of loans processed. Current users of the platform include household names such as Alameda Research, Wintermute Trading, and Invictus Capital, to name a few.

With this growth, the Defi industry has caught on. The platform has been consistently climbing up the rankings ladder on Defipulse.com, an analytics-based leaderboard for various decentralized finance options and one of the most trusted sites for DeFi statistics. In just under three months from launching, TrueFi has established itself as one of the most exciting projects in the industry. 

What is TrueFi and How Does TrueFi Work?

In essence, TrueFi is an extensive DeFi ecosystem that enables vetted borrowers to request loans denominated in TUSD, without posting collateral. Not only that, it also allows TRU Stakers to assess the creditworthiness of any loans being issued by the platform. Using the system, TUSD lenders can earn attractive APYs on their stablecoins while also farming TRU, thus making TrueFi a truly unique innovation within this burgeoning space.

However, if you didn’t get any of what was just written above, you can think of TrueFi as being a protocol that facilitates uncollateralized lending, and TRU, the native token used for staking and voting on loan requests - like a decentralized, multi-million dollar credit card for trustworthy businesses.

The eventual goal of the platform is to help usher in an era of “uncollateralized lending” into the DeFi ecosystem, helping cryptocurrency lenders rake in attractive yet sustainable rates of returns while providing borrowers with predictable loan terms without requiring collateral. In effect, this would free up money to quickly and cheaply move to the best value-creating opportunities. 

A brief overview of the TrueFi Protocol

To make the platform tick, lenders are required to add TrueUSD into a TrueFi pool for purposes such as loans, interest accrual, and TRU farming. In this regard, any capital that remains untouched is transferred into Curve as a means of maximizing the platform’s earning potential.

On the other hand, borrowers (including OTC desks, exchanges, etc) are required to submit proposals by clearly delineating the amount of capital needed, APY offered, total term involved, Ether wallet address being used. Not only that, each and every borrow request is subject to approval from TRU Stakers - together acting as a sort “decentralized loan officers” that come to a decision on a borrower’s creditworthiness together.

Lastly, TrueFi’s native Pool smart contract also assesses the risk parameters as well as the yes/no votes issued by TRU Stakers so as to approve or reject any loan requests. Once issued, the borrower is required to return the principal as well as the applicable sum of interest on or before the expiry of the loan term. Defaulters are subject to legal action.

How has the platform been performing?

During the month of December, TrueFi’s first $5mm loan to Alameda Research was fully repaid by the firm. Following this, a total of four additional loans totaling $12mm were issued to borrowers including Grapefruit Trading, Alameda Research, and Invictus Capital. As of January 16, 2 of these loans, amounting to $7.5mm have been successfully cleared by Alameda Research ($6.5M) and Invictus Capital ($1M).

As a testament to the platform’s complete commitment to transparency, the live status of all active loans can be viewed by clicking on the following link: https://app.truefi.io/loans.

Additionally, it bears mentioning that TUSD is the only stablecoin in the market to have real-time 24/7 attestations from a top 25 American accounting firm ‘Armanino LLC’ as well as collateralization being reported on-chain in real-time via the ChainLink network.

Also, since its inception, TrueFi has undergone a number of functional upgrades, with the first one being the system’s new on-chain governance module that has been devised in the same vein as the model currently being used by Compound.

Lastly, over the last month or so, a lot of front end bugs as well as smart contract issues affecting the platform have been resolved, with the latter primarily solving TFI-LP slippage issues for token holders that may be looking to leave their lending pools early.

A Look at the Upcoming TrueFi v2

To help improve the overall efficacy of the platform, TrueFi v2 is currently in the works. The upgrade essentially entails a number of modifications to the original TrueFi protocol, allowing for a dramatic overhaul in the platform’s lending operations as well as other niche’ aspects related to value accrual, decentralization, and automation.

As the TrueFi roadmap continues to develop and evolve, the aforementioned upgrades will be doled out in phases synchronized with unlocked tokens entering circulation. Not only that, the final changes will be put forth in front of the community for a final review before implementation.

Recent Strides Worth Highlighting

  • On December 25, 2020, TRU was included in the launch of Sushiswap’s Onsen incentive program. As a result, SushiSwap TRU/ETH liquidity providers have now been afforded the ability to stake their SLP tokens in return for SUSHI rewards.
  • On January 14, 2021, a number of TRU markets — TRU/USD spot, TRU/USDT spot, TRU-PERP, TRU quarterly futures —  were listed on prominent cryptocurrency derivatives exchange FTX.
  • On January 19, 2021, Poloniex listed four TRU trading pairs - TUSD/USDT, TUSD/USDC, TUSD/ETH, and TUSD/BTC.
  • On January 20, 2021 TRU was listed on the premier cryptocurrency exchange Binance. Not only that, on the same day, Gate.io also announced that it had added a TRU/USDT perpetual contract trading to its platform
  • On January 23, 2021, one of TrueFi’s key borrowers, global crypto market maker Wintermute was able to raise $20 million via a Series B funding round.
  • Within just three months of launching, TRU is trading on Binance, FTX, Uniswap, and Sushiswap, 

Upcoming developments to keep an out for

In the near future, the TrueFi team is looking to explore the possibility of a TFI-LP metapool on Curve.fi. The creation of such an incentivization pool on Curve will allow for enhanced liquidity of TFI-LP tokens as liquidity providers to this new pool will be provided with an opportunity to not only earn CRV rewards + trading fees but also incur regular interest from TFI-LP tokens.

Additionally, over the course of the next thirty days, the platform devs are looking to completely decentralize TrueFi. What this means is that all future protocol upgrades and changes will require the explicit consent of TRU holders, with the TrustToken team not having any ability to initiate any sort of changes or upgrades without community consent.

Lastly, within the aforementioned time window, all actions within the TrueFi ecosystem will be automated such that activities like CRV claims, closing out of loans, etc can happen seamlessly without any sort of human intervention.

Disclaimer: This article is not financial advice and is educational in nature. Please consult your financial advisor before investing in any digital currencies or projects.

 

Related Articles

View Comments and Join the Discussion!

Posted-In: LaunchTeamFintech General