In the context of the ever-evolving decentralized finance (DeFi) landscape, TrueFi emerges as an innovative protocol, offering a unique solution for decentralized lending, particularly the ability to lend without collateral. Built on the Ethereum blockchain, TrueFi aims to create an efficient and transparent capital market that connects lenders and borrowers directly and securely. In this article, we will explore what TrueFi (TRU) is and what distinguishes it.

What is TrueFi?

TrueFi is a decentralized finance (DeFi) protocol that allows unsecured loans on the blockchain. Developed by TrustToken, the team behind the stablecoin TUSD (TrueUSD), TrueFi was created to address a significant issue in DeFi: most current loans require excessive collateral, which limits access to capital and reduces asset utilization efficiency.

TrueFi creates a platform where vetted organizations can borrow money without needing to provide collateral, relying on on-chain credit scores, community approval, and transparent governance mechanisms.

What is TRU Coin?

TRU is the native utility token of the TrueFi protocol, playing a vital role in the ecosystem. It is used to:

  • Governance: TRU holders have the right to participate in the management of the protocol, including approving fund managers and new borrowers.

  • Staking: Users can stake TRU to vote on loans. Those who vote correctly will be rewarded with TRU tokens. In the event of borrower default, a portion of the staked TRU may be used to protect lenders.

  • Incentive: TRU is used to reward those who provide liquidity to TrueFi's pools.

Where to buy and sell TRU Coin?

Currently, you can buy and sell TRU on the exchange Binance.com, which is currently the best exchange for trading TRU Coin and also has the highest 24h trading volume for TRU, accounting for about 50% of the total trading volume.

If you do not have an account on this exchange, you can register an account at the link below.

Register for a Binance account to reduce trading fees by 20%: https://accounts.binance.com/register?

Highlights of TrueFi

  • Unsecured lending – facilitating access for borrowing organizations.

  • High transparency – all loans, credit data, and repayment histories are on-chain.

  • A credit rating system combining on-chain and off-chain.

  • Backed by a team of experienced professionals from TrustToken.

  • Sustainable returns for lenders – through real interest rates from reputable borrowing organizations.

How TrueFi Works

Below are the basic steps on how the TrueFi platform works:

a. Lenders:

Users can deposit assets into TrueFi's pools (primarily stablecoins like USDC, TUSD, USDT) to earn returns from interest. When the assets are used for lending, they will receive representative tokens (e.g., tfUSDC) and receive periodic interest.

b. Borrowers:

Borrowing organizations must undergo a rigorous vetting process, including on-chain and off-chain credit assessments. Once approved, they can propose loans with specific interest rates, repayment terms, and wait for the TRU community to vote on them.

c. Decentralized credit assessment:

The core differentiator of TrueFi lies in the credit assessment process. TRU token holders (see below) will participate in evaluating loan proposals. They review information about borrowers, credit history (if available on blockchain or provided), and other factors to make a decision to approve or reject the loan. This process occurs transparently on the blockchain.

d. Governance voting:

After a loan proposal is made, TRU token holders will vote to decide whether the loan is approved or not. The more TRU tokens a person holds, the greater their voting power.

e. Capital disbursement:

If the loan proposal is approved by the community, the loan amount will be disbursed from the lending pool to the borrower.

f. Repayment and interest collection:

Borrowers are obligated to repay the amount borrowed plus interest as agreed. This interest is distributed to those who provided liquidity to the lending pool.

Basic information about TrueFi

  • Name: TrueFi

  • Ticker: TRU

  • Type: Utility token

  • Blockchain: Ethereum

  • Contract: 0x4c19596f5aaff459fa38b0f7ed92f11ae6543784

  • Maximum supply: 1,450,000,000 TRU

How are TRU tokens allocated?

  • Incentive distribution: 39%

  • Private Sale: 28.5%

  • Team and management: 18.5%

  • Funding/Company: 9.5%

  • Future team: 4.5%

Who created TrueFi (TRU)?

The TrueFi lending and borrowing platform was created by Rafael Cosman (He is the co-founder and CEO of TrustToken).

Project team members include:

Rafael Cosman – CEO & Co-founder

  • Graduated from Stanford University with a major in artificial intelligence and cryptography.

  • Before founding TrustToken, Rafael worked at Google Brain and Palantir.

Marek Kirejczyk – CTO

  • Before joining TrustToken, Marek was the founder and CEO of EthWorks, a well-known Web3 development company.

  • After TrustToken acquired EthWorks in 2021, Marek became the CTO of TrustToken.

Bill Wolf – CIO

  • Before joining TrustToken, Bill was a partner at Goldman Sachs, HSBC, and Credit Suisse.

Ryan Christensen – CPO

  • Graduated from MIT and has over 25 years of experience in technology and product.

  • Before joining TrustToken, Ryan held leadership positions at AppNexus, Zynga, Yahoo, and AT&T.

Alex de Lorraine – COO

  • Has over 20 years of experience working at major companies like Google, IBM, and Plizer.

The future of TrueFi

In an increasingly professionalized market context, the demand for transparent and efficient unsecured loans will rise – and TrueFi is one of the pioneering projects in this area. If it continues to maintain transparency, good risk control, and expands to more traditional financial institutions, TrueFi could become a strong bridge between DeFi and TradFi (traditional finance).

Conclusion

TrueFi is a promising DeFi protocol that offers a new approach to the decentralized lending market. By leveraging a decentralized credit assessment system and community governance, TrueFi opens up opportunities for more efficient lending without excessive collateral requirements. However, users must also be aware of the potential risks when participating in this protocol. With the ongoing development of DeFi, TrueFi has the potential to become an important part of the future financial ecosystem.

I hope this article provides you with a comprehensive view of TrueFi (TRU). If you have any other questions, feel free to ask!