Managed Portfolios are configurable lending pools run by independent managers on TrueFi infrastructure. Portfolio Managers ("PMs") have discretion over loan terms, as well as other items such as the pool's maximum size, maturity date, and lender access/restrictions.
Portfolios can serve real world financing borrowers and use cases, as covered by PYMNTS here, as well as crypto-focused borrowers (institutions, DAOs, etc., as covered by Bloomberg here).
Portfolio on TrueFi
Who can lend to portfolios on TrueFi?
Portfolio managers define who can lend into each portfolio (i.e. whether portfolios are permissioned or permissionless).
Portfolio Managers (PMs) make decisions on underwriting loans, managing relationships with borrowers, and configuring portfolios. Lenders are responsible for conducting diligence on PMs and portfolios before lending.
When can lenders withdraw?
Lenders can withdraw funds only after the portfolio's maturity date. Funds are locked up in the portfolio until the portfolio’s maturity is reached.
Can lenders transfer portfolio tokens?
No, portfolio tokens are non-transferrable by default.
Managers can enable transfers if desired.
What are the fees on portfolios?
Lenders in portfolios pay a standard protocol fee of 50 bps (0.50%) per annum to the TrueFi DAO treasury. Fees accrue block-by-block, meaning that if a lender puts 10,000 USDC into a portfolio for 30 days, the lender would accrue a protocol fee of ~4 USDC over the course of 30 days.
Protocol Fee example
Sally puts 10,000 USDC into a portfolio for 30 days, where protocol fee = 50 bps per annum.
Assuming the value of Sally's principal grows linearly to 10,100 USDC during this time (thus avg. position value of 10,500 USDC), Sally would accrue and pay a protocol fee of 4.32 USDC over the course of 30 days:
Additionally, PMs can set an optional Portfolio Fee to be paid by lenders. Portfolio Fees are paid to the PM, and can be configured such that they are (i) accrued linearly over time, (ii) paid at deposit, or (iii) paid at withdrawal.