• Thu. Apr 25th, 2024

How TrueFi Capital Market Will Change the Future of DeFi Credit


SINGAPORE, July 12, 2022 (GLOBE NEWSWIRE) — As a leading cryptocurrency exchange, BitYard hosted an AMA with the TrueFi team, DeFi’s first credit marketplace, and invited Matt Kielczewski, the head of community, to share his views on how credit will change the future of on-chain credit.

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In the traditional way of financial lending, borrowers need collateral to get a loan. TrueFi provides unsecured loans through a credit scoring mechanism. Even when the borrower does not have collateral, it can punish the behavior of defaulting on the loan; at the same time, introduce high-quality lenders at high interest rates and provide lenders with stable and sizable loans.

By staking TRU on TrueFi, token holders earn substantial rewards in the form of token incentives and loan origination fees, in exchange for assuring lenders of the protocol in case of default. “Staking APYs are now +12% – and that’s before origination fees,” says Matt, the head of the community of TrueFi.

For the loan application proposed by the borrower, the TRU pledger will vote to decide whether to lend the loan. Such a vote would expose TRU stakers to the possibility of incurring losses or gaining gains, so TRU stakers would be incentivized to vote prudently.

“We saw TrueFi as an opportunity to help put money in places where it can grow best, with the least amount of friction. This first era of TrueFi was important to today’s design, which enables independent portfolio managers to move their financial opportunities on-chain, opening up opportunities to retail investors to back B2B fintech lending, emerging market investing, and even crypto mortgages. Today, TrueFi acts as a lending marketplace, connecting portfolio managers offering financial opportunities to borrowers seeking capital and lenders seeking yields. You can think of it almost like an app store, but serving up lending opportunities rather than apps,” says Matt.

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TrueFi focuses on businesses, as they are a lender for institutional borrowers first. But, they are now letting it be even easier for the retail lender to get involved in their protocol! The first step in that direction was the launch of the Perpetual Protocol Portfolio on Optimism. The launch of this portfolio allows retail users to jump into our lending protocol by parking their USDC with lower gas fees and faster transactions using the Optimism L2 Ethereum scaling solution.

About TrueFi

TrueFi was launched in November 2020, making TrueFi DeFi’s first credit-based lending protocol. TrueFi lets portfolio managers launch uncollateralized lending opportunities on-chain to a global base of lenders and borrowers. Lenders enjoy lucrative, sustainable yields across a variety of on-chain and off-chain financial opportunities, and borrowers can rapidly access competitively priced capital with no collateral requirements.

About BitYard

BitYard is a one-stop cryptocurrency trading platform with the most professional services. Bityard provides users a trading solution through Spot, Contracts for Differences (CFDs), Inverse perpetual contracts, USDT perpetual contracts, Grid trading, and Copy-trading services.


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Kevin Moore - E-Crypto News Editor

Kevin Moore - E-Crypto News Editor

Kevin Moore is the main author and editor for E-Crypto News.