The arrival of V3 means two extremely important protocol upgrades: the introduction of the TrueFi credit model and the introduction of multi-asset support, starting with USDC.
Written by: TrueFi
DeFi credit score and USDC loan pool 2 times rewards have been launched on May 21
Since the launch of TrueFi V2 in February 2021 (V2 provides an improved pledge model and liquidity exit mechanism), as the first DeFi unsecured lending agreement, TrueFi has continuously achieved major milestones in lending and products.
At present, TrueFi has issued approximately US$105 million in unsecured loans out of 27 loans , and has reached a 100% repayment rate. The platform has attracted 15 top institutions in the industry as active borrowers, and dozens of new borrowers are still under review. At the same time, we have also improved our due diligence on borrowers with the introduction of the first-stage credit model.
These loans have created nearly $1 million in return for lenders and pledgers in the form of loan origination fees and payment of loan interest (excluding TRU awards), with a median annual interest rate of 14% and an average maturity of 49 days.
The expansion of borrowing has attracted a total lock-up value (TVL) of more than US$100 million, which is composed of approximately US$75 million in loan pool assets and approximately 30% of pledged TRUs . This means that approximately 70 million locked TRU tokens are supporting the TrueFi platform as the last guarantee in case of default.
At the same time, TrueFi has made significant improvements to products and user experience; through integration with Chainlink, Sushiswap and other top encryption protocols, a deeper partnership has been established in the DeFi ecosystem; and through the launch of our Dune Analytics dashboard And the TRU financial transparency provided by the top accounting partner Armanino LLP has improved the transparency of the agreement.
The TrueFi upgrade has been carried out on May 20, the newly launched V3 provides a new credit scoring system, and is opening the USDC loan pool with a 2x reward
TrueFi Roadmap: Click to view the full version
TrueFi V3: Launch of credit model and multi-asset support
The arrival of V3 means two extremely important protocol upgrades: the introduction of the TrueFi credit model and the introduction of multi-asset support , starting with USDC. These two developments have opened up huge potential for TrueFi and DeFi extensively.
New feature: TrueFi credit model
TrueFi’s credit model represents a new DeFi building block. Although it is still under development, it is expected to develop into the most trustworthy DeFi through the integration of on-chain and off-chain data, and a development perspective designed for the use of other protocols. One of the borrowers’ creditworthiness references.
When V3 is officially launched, TrueFi will whitelist borrowers based on the in-depth Know Your Company (KYB) workflow, and select long-respected cryptocurrency native institutions as borrowers, and process loans based on the approval of the Trustakers community. The V1 version of the loan process has allowed companies such as Alameda Research, Poloniex, and Wintermute Trading to borrow millions of dollars from TrueFi lenders.
However, in order to expand the scale of loan issuance to the level of billions of dollars, TrueFi V3 will rely on the input of the credit model. The model aggregates some new factors to generate a TrueFi credit score from 0 to 255 , which will be publicly displayed on the borrower’s file (for example: Folkvang ):
Company background , including compliance, legal, accounting and regulatory health, and review of company structure
Repayment history , starting with TrueFi, will eventually extend to other platform history
Operation and transaction history , while considering cryptocurrency and traditional financial experience
Assets under management , taking into account the type and custody of assets
Credit indicators , including asset coverage, leverage, liquidity and risk exposure
Many elements of this credit model are being used in the current TrueFi borrower review. With the launch of V3, TrueFi’s credit model will play a greater role in formulating new loan terms.
Although the credit model is still in its infancy, it will continue to be improved with the access of new information sources (such as centralized exchange of data, cross-chain history across other protocols) and the continuous development of the TrueFi protocol.
The grand vision of TrueFi Credit is a composable, industry-recognized and decentralized credit measurement standard. While respecting the privacy of borrowers, it imports on-chain and off-chain data to make a contribution to cross-protocol cryptocurrency finance. .
New feature: multi-asset support
The goal of TrueFi is to eventually allow almost any ERC-20 asset to be used to generate new loan pools, each of which can increase the total lock-up value and net utilization of the agreement.
The next batch of assets supported by TrueFi in V3 will be stable coins: USDC and USDT
Stablecoins enjoy high efficiency and high demand: they are not only a key component of DeFi, responsible for most of the financial activities of various agreements, but also the most demanded assets of TrueFi borrowers.
The first asset to join the TrueFi loan pool will be USDC , which will join around May 20, 2021, and Tether (USDT) will join in June 2021 shortly thereafter. Each asset will be a variant of ERC-20.
When going online, each of these assets will provide lenders with generous TRU incentives, and will likely provide depositors with a very competitive rate of return. As a single-asset loan pool, despite other risks , lenders can avoid the impermanent losses of these asset pools.
TrueFi is continuing to consider platform support for other assets, and is currently reviewing the legal risks and borrower needs of DAI, ETH, and BTC.
Increase USDC and TUSD incentives
In order to support the launch of TrueFi V3, the community has voted to increase the rewards for lenders and pledgers of deposits in the loan pool. At the time of launch, the single asset stable currency loan pool in these loan pools is estimated to provide an annual interest rate far exceeding 100%.
Within 14 days from May 19, 2021, lenders in TrueFi’s TUSD or USDC lending pool will enjoy double TRU rewards, and TRU pledgers will enjoy an additional 25,000 TRU/day pledge reward (the target pledge rate is approximately Is 50%). This period can be extended through community governance voting.
The following are the details of the official rewards after the promotion:
1. Establish a 14-day tfUSDC income farm with a daily reward of 290,934TRU/day (44.76 TRU per block)
2. Increase the daily reward volume of the tfTUSD income farm by 2 times, from 145,467 TRU/day to 290,934 TRU/day (44.76 TRU per block) for a period of 14 days
3. Increase the daily reward volume of stkTRU from 100,000 to 125,000 TRU/day (19.23 TRU per block) for 90 days.
Timeline: The increased reward volume of tfUSDC and tfTUSD will run for 14 days after tfUSDC is launched (14 days later, each fund pool will be restored to 145,467 TRU/day (22.38 TRU per block), unless the additional reward period is extended by community management.
These revenue farms are expected to open on Thursday, May 20, 2021 at 1:00 PM Eastern Time / Beijing Time at 1:00 AM on May 21, 2021.
Click on the YouTube video to learn how to lend on TrueFi. The same workflow applies to TUSD, USDC and USDT.
TrueFi is coming soon
After the V3 upgrade, some core products, platform governance and cooperation plans will be launched.
To be determined: credit limit and tradable loan tokens
Credit lines and tradable loan tokens were originally scheduled to be launched together with V3. At present, this function is still under design, and important updates are coming soon.
credits
It will allow borrowers to obtain loans with no fixed term, thereby greatly improving the borrower’s user experience. This feature is still being developed in close cooperation with TrueFi borrowers.
Tradable loan tokens
It will create a market for loans of specific borrowers and increase the overall liquidity of TrueFi and the function of platform pool tokens. These assets are currently undergoing close legal review, and it is believed that tradable loan tokens cannot be launched before TrueFi becomes more decentralized.
Double rewards for Sushiswap TRU/ETH pool
After Sushiswap’s MasterChef V2 is launched around May 21, 2021, the TRU/ETH Sushiswap trading pair will receive double rewards: TRU through TrueFi LP rewards, and SUSHHI through Sushiswap Onsen rewards. The APY of this fund pool is expected to exceed 100% when it goes live.
Please click here to continue reading the original DEX migration suggestions .
TrueFi Guarantee of Last (SAFU) Fund
Initially discussed by TRU holders , the SAFU fund used to protect loan pool depositors in the event of default is now supported by 5 million + TRU and has been included in the corresponding measures for default .
In the following blog, we will introduce in detail how the SAFU Fund works and how it maintains self-financing.
Extensive ERC-20 asset support
The new stablecoin pool of TrueFi V3 is the first step for the TrueFi loan pool to achieve extensive ERC-20 asset support.
How to participate in TrueFi
🤑Earnings : The best way to start using TrueFi now is to lend TUSD or USDC to the newly added loan pool. Click on the loan on the loan pool page to get started .
👩🎓Learning : You can learn more about TrueFi on our Litepaper or YouTube , and visit our Medium blog for in-depth articles on roadmaps, tokenomics, and more.
🤝Keep in touch : Follow the latest news of TrueFi on Twitter and join our Discord to participate in the conversation, or subscribe to Substack to get project news via email.
🇨🇳Chinese Community : Follow the TrueFi Weibo account @TrueFi中文站following the QR code to join the WeChat community and learn about the latest Chinese developments.
