The first DeFi loan was made by TrueFi to Alameda Research for $3.5 million on November 21, 2020. Since that historic moment as we know it, the TrueFi protocol has grown rapidly and steadily.
It hit $1 billion in Total Value Locked (TVL) in August 2020, two months later. The protocol has a total of $1 billion in loans that were made on November 12, 2021, just in time for the protocol’s one-year anniversary. Since the launch of the protocol It still maintains a repayment rate without default. And TrueFi’s lenders have already collected about $8.5 million in interest.
Meanwhile, more than 5,000 TRU-holders in their wallets participated in dozens of governance votes aimed at guiding the protocol itself.
When it comes to protocol development and deployment, TrueFi is a good place to start. But the progress of the protocol to date is only the beginning. With the traditional global credit market estimated to be worth up to $6 trillion.
TrueFi is thinking of taking advantage of the trust, transparency, and speed to bring this market more online.
With that in mind, TrueFi was built on the belief that two great revolutions were coming:
firstly speed, cost savings and the transparency of blockchain technology will attract borrowing on
Most networks around the world
secondly The capital efficiency of unsecured lending will enable it to beat TVL of over-collateralized lending in DeFi, all powered by an efficient credit score and underwriting.
To facilitate these changes, TrueFi had to significantly expand its funding. both at the personal loan level and at a larger level such as broadband loans This is the focus of TrueFi’s V5 upgrade. Improvements to support the borrower’s experience are important. As well as prototyping support for third-party asset managers who will launch their own TrueFi pools, this also coincides with the launch of new BUSD loan pools under TrueFi’s existing lending strategy.
With that in mind, let’s explore the upcoming upgrades in V5, which we call the Lending Engine upgrade.
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Let’s take a look at TrueFi’s Lending Market prototype.
TrueFi’s grand vision is to be a global lending protocol. But until now, TrueFi has been like a closed garden. That is to say, lending is limited to only the opportunity to earn returns from borrowers with cryptocurrencies. which can only pay interest on the loan and start having capital from the business quickly
But these borrowers helped test the TrueFi protocol and also made a new era of TrueFi possible. That is, opening TrueFi to third-party asset managers, creating an entirely new credit pool. which will attract new borrowers
So what does this mean for TrueFi? Let’s compare them. When the first iPhone was launched The device has three main apps which are party app, music and photo/camera. These different features have never been available in a single device. The same goes for unsecured lending and unsecured credit scoring for DeFi.
But the true potential of the iPhone was made possible by the launch of the App Store. This allowed third-party developers to successfully launch products that were approved by Apple (but not built by Apple) and then succeeded, such as: Maps, games, on-demand goods and services, and much more.
the same as the launch “Lending Market” TrueFi’s upcoming release is a protocol method of exposure to independent developers and third-party asset managers. where people are more flexible than ever to build new technical and financial products on the TrueFi lending infrastructure.
Around the same time as TrueFi’s V5 upgrade, TrustToken is aiming to test third-party support by becoming the first to launch an independent, protocol-based lending pool.
TrustToken, which is designed to offer B2B loans on different terms than the existing TrueFi pool. TrustToken will take various risks to develop and seamlessly support third-party support in order to create the best platform for future asset managers. TrustToken consulted with a number of asset managers to assist them in getting started.
Getting started with TrueFi, and if you’re an asset manager or developer looking to get started on TrueFi, we’d love to help you get started. You can consult our team from TrustToken to discuss more about opening a new TrueFi pool.
Since the first independent pool has been tested successfully and the protocol has been restructured to accommodate more sophisticated third-party support. We expect more share in TrueFi’s lending market on upgrades by early 2022.
Let’s talk about the newly updated V5.
In TrueFi V4 we have a prototype for Lines of Credit (LoC) which, once approved by the community, It can offer borrowers constant access to self-funding at dynamic market rates.
since then Various small upgrades to TrueFi’s LoC are ready to roll out to TrueFi in larger bands. Each upgrade component increases capital so that money can be moved more quickly and in greater volume on TrueFi.
note These upgrade components will be rolled out gradually over a few months after a technical review is expected to be completed by December. In line with our commitment to security
Let’s take a look at updates on the new auto loan ratings.
At the heart of this borrowing tool upgrade That is to have an automated system of loan interest rates. The loan scheme is automatic and it acts as the primary method for setting limits. interest rate and the borrower’s loan terms Since the introduction of credit scoring in V3, there have been dozens of new loans that have tightened the need for borrowing models. causing delays in operations This new upgrade is expected to significantly accelerate TrueFi lending, but also make the protocol more capital intensive to work with.
This has significant implications for TRU holders, as the community will remain key to borrower approvals, lending pools, and overall control over protocols. But voting against TRU to approve a personal loan is no longer necessary.
Whereas the community’s vote on loans is primarily aimed at to initiate this automatic credit process. Community sentiment in voting also supports TRU’s deprecation of this feature, which was found to often result in gas costs outpacing the TRU award and holders having to study TRU on a day-to-day basis. Then they feel that it is difficult and unnecessary.
V5 also offers an entirely new utility for the TRU token that is expected to create new demand among borrowers.
For TRU Staking Borrowers
To determine the creditworthiness of borrowers, TrueFi uses all information available to them (such as trading records, liquidity and payment history) and possibly off-network information (such as company and operating history). to calculate the score
From 0 to 255 thereafter, this score determines the conditions of the borrower’s activity on TrueFi. It increases every time a borrower repays a loan. TrueFi increases their assets under management. or reduce the incurrence of additional debt and vice versa The borrower’s debt ceiling in TrueFi will continue to increase as well.
however Most borrowers want this process to be faster. Because the more they can borrow money. The more profitable it is. So for some borrowers, it takes many months to pay off a small amount of a loan to boost their credit score.
V5 offers a new way to improve borrowers’ existing credit by allowing authorized TrueFi borrowers to bet on TRU to increase their credit limit and fix their credit rate. Borrowers who bet on TRU will be fixed on the amount and terms of the loan as long as their TRU is kept. But in the event of a loan default, SAFU will use its discretion to determine over the borrower’s TRU.
Loan with just one click!!
With TrueFi loans that can now be instantly approved by an automated scoring model, TrueFi will now be able to support one-click lending. This upgrade eliminates the borrower’s waiting period to be approved.
TrueFi’s current 2-7 days to 30 seconds, one-click borrowing will greatly reduce the problem of borrowing on TrueFi, and there will likely be more benefits from TrueFi’s loan pool and By expanding the interest of lenders, TrueFi hopes to set a new standard in the DeFi borrower experience.
early launch One-click borrowing is only allowed for TrueFi high-score borrowers with a credit score above 200 (out of 255).
Slower is Faster concept
TrueFi has kept its promise of user security long before our launch in November 2020. Among TrueFi’s many investments in the security of users’ funds, TrueFi needs to be reviewed. Check the code before launching. for maximum safety The same is the case with all protocol upgrades to date. And that will still be the case for our V5 upgrade too.
Although the V5 upgrade described above is almost complete. But the current review schedule will allow us to implement this change no later than January 2022. Even during this time, TrueFi will not sit still, core teams continue to build on the V6 feature, keep recruiting new partners. , contributors and borrowers as well as expanding our community to a large extent. And as our investment in security and technical excellence doubles,
TrustToken will continue this commitment as our newest company value. Because our partners at EthWorks have been around for a long time. (Which is now part of the TrustToken group following its acquisition in September 2021). We have also added the Slower is Faster concept to our other values.
If this value matches you You can learn more about how TrustToken works and join our team here! : https://www.trusttoken.com/about/
New BUSD Loan Pool
TrueFi will launch a new BUSD loan facility based on the protocol’s existing lending strategy, serving cryptocurrency borrowers who prefer a market-neutral approach or prefer appropriate hedging.
The community has approved a BUSD pool totaling 40,000 TRU per day for at least two weeks. This BUSD pool will be reviewed again after two weeks. and may increase, extend or decrease the number
Join the BUSD pool in the TrueFi app today at: app.truefi.io/lend.
Let’s take a closer look at TrueFi in 2022.
In TrueFi’s first year, the protocol surpassed $1B in Total Value Locked and $1B in Loan Origination Value, all serving a tiny fraction of the cryptocurrency lender market. crypto-native only
But with a trillion-dollar global lending market, TrueFi’s second year is moving beyond crypto by lending to a more diversified pool of borrowers. and make the capital work at a higher level
This rapid scaling is sure to require an amazing level of change in the protocol. This includes expanding the scope of collaborators. For example, asset managers and independent developers. The product is also being restructured to be more open source and decentralized. and rely more on the growing community of TRU holders. To lead, improve and support TrueFi
Ready to join our team? Try starting as a community member, lender, creator, borrower or teammate below.
👮♀️ Community: If you’re ready to join the front line
TrueFi’s TRUpers are collected on our TrueFi Discord and Telegram channels with regular reports from our Twitter.
Never done it before? Get started from our Litepaper.
🧑🌾 Earn: Start earning interest and rewards on farming by lending your Stablecoins on the TrueFi app today.
👷♀️ Create: Want to build on TrueFi? As an asset manager or technologist?
The TrustToken team will be happy to help you get started.
👩💼 Lend: Running a business with at least $10 million in assets under management? You may be eligible to borrow TrueFi, apply today and access funds in just 7 days!!
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