PMs can enforce restrictions on who can lend to their vaults by using TrueFi's Controllers architecture. PMs can easily configure permissioned vaults that meet their specs.
Below are some notes on standard configurations available. PMs can also implement their own custom policies (as decribed here).
Allowlisted lenders only: manager limits access to a set of allowlisted wallet addresses.
Non-US lenders only: only non-US IP addresses can access portfolio; lenders must attest that they are non-US persons
Portfolio Managers ("PMs") can launch and run their own funds on TrueFi, using TrueFi credit infrastructure.
To deploy a portfolio, managers must be approved by TrueFi governance via the following steps:
PM posts forum request at https://forum.truefi.io/.
This forum request should outline the PM's background and plans, along with the PM's Ethereum (or Optimism) address.
For previous examples, please see here.
After governance approval, TrueFi governance adds the PM's address to an allowlist.
This enables the PM to deploy vaults from a factory contract.
PM deploys vault
Vaults are supported on Ethereum and Optimism.
For more details on how vaults work, visit Credit Vaults and Asset Vaults.
Once successfully onboarded, a portfolio manager can launch a new vault.
PMs can easily create a fund by clicking "Create New Portfolio" at https://app.truefi.io/managers. To test and demo the product, see the guide here: Credit Vault tutorial.
The TrueFi application walks PMs through the vault creation process, as shown in the demo below:
In vault creation, PMs are able to configure the following settings (among others):
Capital formation rules
During the Capital Formation period, lenders can commit funds with assurance that the smart contract will return funds (with no fees) if certain requirements are not satisfied. For more details, read here.
Example: PM configures a 30 day capital formation period and minimum vault size of 1M USDC. If the fund has not raised ≥1M USDC by day 30, then principal will be returned to lenders with no fees taken. If the fund raises ≥1M USDC within 30 days, then the PM can move the vault to 'Live' status and deploy loans from the vault.
Tranche configurations
Number of tranches: single tranche / 2 tranches / 3 thranches
Minimum subordination ratios for each tranche
For more details on tranche mechanics, read here.
Vault duration / maturity date
Lender funds will be locked up until the vault's maturity date
All loans within the vault must mature before, or on the maturity date
Fee structure
Vault fee: in basis points, on annualized basis
For more details on fees, read here.
Lender permissions / restrictions
i.e. manager can require KYC or set custom list of allowed lenders
For more details on permissions, read here.
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.
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.
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
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.
To disburse a loan, click 'Disburse a loan' on the portfolio page and follow the on-screen prompts (see below for more detail):
Parameters required for each loan:
Borrower address
Principal Amount
Loan term (in days)
Interest rate (APR)
Once loan terms are accepted by borrower, the manager can disburse funds to the borrower's address:
