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Getting started as a Portfolio Manager on TrueFi
Portfolio Managers ("PMs") can use TrueFi infrastructure to run their own credit fund on the Ethereum blockchain and additional networks.
In this section, PMs can learn how to launch and manage a fund on TrueFi. Below is a step-by-step guide to running a fund on TrueFi:
Onboarding for managers: New managers introduce themselves to the TrueFi community and are vetted by TrueFi governance. During this process, potential lenders can communicate with and learn more about PMs.
Creating a vault: PMs deploy their fund (called a "vault") via the TrueFi app.
Disbursing loans: Once a vault is live, PMs can disburse funds to borrowers. The TrueFi app makes it easy for PMs and borrowers to create loans, disburse funds, and repay loans.
Continuous fund management: TrueFi smart contracts streamline the processing of lender inflows/outflows, as well as principal and interest payments, in real-time 365/24/7.
TrueFi's partner Archblock can help institutional users onboard and operate on TrueFi.
For more info, visit archblock.com/managers.
How does it work?
For a brief overview, see the demo video below:
When creating a portfolio the PM configures policies for fees, min/maximum portfolio size, portfolio maturity dates/tenor, and other parameters.
Additionally, PMs have the option to run permissioned portfolios, where they can enforce KYC/KYB policies for lenders. Read more here on how PMs can set such policies.
PMs are able to share information and due diligence materials with lenders via the TrueFi app.
Does TrueFi support "real world" use cases?
Yes, TrueFi offers infrastructure to support "real world" financing as well as crypto-centric financing deals. TrueFi smart contracts give PMs the ability to create instruments such as fixed rate loans, lines of credit, amortizing loans, and multi-tranche facilities.
For a recent example, read here: https://blockworks.co/news/on-chain-investors-us-treasury
What are potential benefits of using TrueFi?
Reduced overhead cost, by servicing otherwise difficult and expensive components of fund management on-chain.
Access TrueFi's global liquidity network, leveraging DeFi rails to interact with lenders across the world 24/7/365.
Best-in-class infrastructure enables PMs to configure pools to their specifications.
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