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Lend

Getting started as a Lender on TrueFi

Why lend on TrueFi?

Transactions on TrueFi are transparent and publicly auditable, enabling lenders to track every dollar (or token) loaned to TrueFi’s borrowers and portfolio managers.
Lenders can search for opportunities that meet their unique needs. Portfolios on TrueFi span strategies across multiple sectors and various liquidity profiles.
If you are an institutional lender seeking more information, please visit https://truefi.io/institutions to get in touch.

How does TrueFi work?

TrueFi's smart contract infrastructure helps lenders, managers, and borrowers interact transparently and seamlessly.
For lenders, the process is as follows:
  1. 1.
    Find suitable opportunities via app.truefi.io or by contacting managers directly
  2. 2.
    Onboard / KYC with portfolio manager (if necessary)
  3. 3.
    Lend funds with instant settlement 24/7
  4. 4.
    Monitor activity & track returns of portfolios and loans
  5. 5.
    Redeem / Withdraw funds when liquidity is available

How do I learn about portfolio managers on TrueFi?

Portfolio Managers ("PMs") undergo an approval process by the TrueFi DAO. You can learn more about that process here and follow links to each manager's public profile.
For the most up-to-date information on PMs, please see the TrueFi app for a list of active managers and links to their materials.

Additional FAQs

What structures do TrueFi Capital Markets support?

TrueFi Capital Markets support multiple structures for various market participants.
  • ​Flexible Portfolios enable managers to run their own credit strategy and TrueFi infrastructure.
  • ​Lines of Credit enable borrowers to source capital directly from lenders.
  • ​Structured Portfolios [coming soon™ / late 2022] enable multi-tranche deals that can support a variety of lender risk/return profiles.

What are the fees for using TrueFi Capital Markets?

Portfolios pay a protocol fee to TrueFi and an optional portfolio fee to the portfolio's manager.
The standard protocol fee is 50 basis points (0.50%) per annum, accrued continuously and paid periodically by the portfolio smart contract. Read more here for more detail and an example.
Check the TrueFi app to see protocol and portfolio fees listed on each specifc portfolio.

How can I "farm" TRU tokens?

Lenders in some portfolios can receive TRU tokens on top of underlying yields by "farming TRU". Users can find details about which portfolios are eligible and how to particiapte here.

How do lenders interact with portfolios?

TrueFi portfolios follow ERC-4626 standards.
Lenders follow simple flows below to interact with portfolios: