TrueFi is an uncollateralized lending DeFi protocol, powered by TRU. It allows lenders to earn returns on loaned cryptocurrencies (starting with TUSD, USDC, and USDT) while having full transparency on how the loaned capital is allocated. Vetted borrowers, meanwhile, can use TrueFi for rapid access to fixed-term, fixed-rate cryptocurrency loans. TRU holders collectively assess the creditworthiness of borrowers and individual loans by staking TRU.
TrueFi was initially built by the TrustToken team, who previously developed five top fiat-backed stablecoins. TrueFi is following a path towards progressive decentralization and will ultimately put the protocol in the hands of the community.
TrueFi enables uncollateralized lending through the interaction of three stakeholders:
Stakers act as part of the protocol's risk management system in return for TRU rewards and 100% of the fees generated by the protocol. TRU Stakers also vote on loan requests, signaling the creditworthiness of each loan request on TrueFi's credit prediction market.
Borrowers, vetted by the protocol, request loans from lending pools using loan tokens, denominated in TUSD, USDC, or USDT.