Lending to DAO pools
Last updated
Last updated
Users can lend to TrueFi DAO pools at https://app.truefi.io/lend.
Once a user is ready to lend, the user will need to complete two transactions:
1) approve(): User must approve the lending pool smart contract to transfer up to a certain allowance of the asset. Read more here.
2) lend(): User lends funds to the lending pool. In return, the lender receives lending pool tokens ("LP tokens").
The lender can optionally stake their LP tokens to farm TRU rewards, which generate additional yield on top of underlying returns in the pool.
The TrueFi app helps to find lenders the best price when they lend to the pool.
Lenders can choose between (i) lending funds directly to the pool and minting LP tokens, or (ii) buying LP tokens on a secondary market (Uniswap).
In the example shown in the screenshot below, the UI shows that the user may be able to get a better price and incur lower gas costs by going directly to Uniswap to get tfUSDC.
