What is TrueFi?
TrueFi, or TRU, is a decentralized lending protocol that allows users to borrow funds without the need for collateral. This peer-to-peer mechanism assesses creditworthiness through in-house credit scores, rather than relying on a third party for loan disbursement.
Decentralized finance (DeFi) has seen success with over-collateralized lending, where a user's funds are locked up because another user has borrowed assets but failed to pay back the lending protocol. However, this method of lending is not sustainable in the long term. TrueFi aims to bring uncollateralized lending to DeFi through the use of a transparent and automated credit rating and lending protocol.
The platform's goal is to offer attractive and sustainable returns for cryptocurrency lenders, while also providing borrowers with predictable loans that maximize their working capital. By using a method of progressive decentralization, TrueFi intends to ease into decentralization in stages rather than diving in headfirst.
Users can benefit from a number of features on the TrueFi platform, including the ability to lend with no lock-in period, competitive returns on assets, default protection through the Secure Assets Funds for Users (SAFU) fund and staking mechanism, maximum transparency through on-chain tracking of funds, and vetted borrowers who undergo a rigorous due diligence process and receive community approval.
TRU, the native governance token of the platform, allows users to earn staking rewards, govern the protocol, and assure TrueFi against misses. TrustToken, the umbrella DeFi organization behind TrueFi, launched the platform on November 21, 2020. The CEO and co-founder of TrustToken, Rafael Cosman, is a machine learning specialist who has previously worked at Google and other companies. Since its launch, TrueFi has undergone two major updates and revised its litepaper in July 2021 to reflect new milestones and modifications in the protocol's design.
TRU tokens have a maximum supply of 1.44 billion, with 39% of the tokens assigned to an incentive pool for platform participants such as lenders, TRU stakers, and liquidity providers. New TRU tokens are created through on-chain governance, where TRU holders can vote on loan eligibility and guide the development of the TrueFi protocol. TRU stakers also earn a portion of the yield created by the protocol's lending activity, and liquidity providers can farm TRU by staking their LP tokens with TrueFi.
TrueFi (TRU) is a decentralized lending platform that allows users to borrow funds without the need for collateral. The platform utilizes a peer-to-peer mechanism, which eliminates the need for a third party to handle credit disbursement. Instead, TrueFi assesses the creditworthiness of potential borrowers through its own in-house credit scoring system.
Decentralized finance (DeFi) has seen immense success in recent years, but one of the main challenges that it faces is the lack of transparency in assessing creditworthiness. This is where TrueFi comes in. The platform aims to bring uncollateralized lending to DeFi, allowing cryptocurrency lenders to earn attractive returns while also providing borrowers with predictable loans that maximize their working capital.
One of the key features of TrueFi is its exit anytime feature, which allows users to lend funds with no lock-in period. This gives users complete control over their assets and allows them to exit a loan whenever they choose. Additionally, the platform offers competitive returns on many assets, default protection through its Secure Assets Funds for Users (SAFU) fund and staking mechanism, maximum transparency through on-chain tracking of funds, and vetted borrowers who have undergone a rigorous due diligence process and have been approved by the TRU community.
TrueFi also has a unique governance structure, where TRU holders have the power to control the protocol, approve new borrowers, and have a say in important decisions such as treasury and partnership decisions. This ensures that the platform is truly by and for its users.
The platform was launched by TrustToken, a DeFi organization, on November 21, 2020. The CEO and co-founder, Rafael Cosman, is a machine learning specialist who has worked at companies such as Google. Since its launch, TrueFi has undergone two major updates (V2 & V3) and has revised its litepaper in July 2021 to reflect new milestones and modifications in the design protocol.
TRU tokens have a maximum supply of 1.44 billion, and 39% of these tokens are assigned to an incentive pool for platform participants such as lenders, TRU stakers, and liquidity providers. This allows for a gradual transfer of control to the users.
New TRU tokens are created through the platform's on-chain governance system. TRU holders can vote on the future development of the platform and have a say in loan eligibility. TRU stakers help to safeguard lenders against default and guide the development of the TrueFi protocol. In addition, 10% of the yield created by the protocol's lending activity is handed out to TRU stakers. TRU liquidity is also supported by liquidity providers, who can farm TRU by staking their LP tokens with TrueFi.
In summary, TrueFi is a decentralized lending platform that aims to bring uncollateralized lending to DeFi. The platform offers a range of features such as exit anytime, competitive returns, default protection, maximum transparency, and vetted borrowers. The platform is also governed by its users, who have the power to control the protocol and approve new borrowers. With its unique approach to creditworthiness assessment and its progressive decentralization approach, TrueFi is poised to revolutionize the DeFi lending space.
The investment information, comments, and recommendations provided here do not fall under the scope of investment consulting. Therefore, making an investment decision based solely on the information and comments provided here may not yield results that meet your expectations.
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