TrueFi (TRU) is a DeFi credit protocol focused on lending, borrowing, and asset management. It operates as a decentralized platform built on Ethereum and Optimism, aiming to connect investors, borrowers, and capital managers for uncollateralized lending across both crypto-native and real-world financial opportunities. By bringing asset management on-chain, TrueFi seeks to eliminate intermediaries, thus enhancing the efficiency, transparency, and accessibility of credit.
Since its inception, TrueFi has facilitated nearly $2 billion in collateral-free loans, demonstrating significant capital efficiency and demand from borrowers. It has also distributed approximately $40 million to lenders, underlining its robust underwriting record. TrueFi has expanded from connecting only crypto-native borrowers and DeFi lenders to offering a marketplace managed by independent portfolio managers, catering to a wide array of financial opportunities such as emerging market investing, fintech financing, real estate, and gig worker lending.
At the core of TrueFi's ecosystem is the TRU token, which plays a crucial role in governance, loss protection for lenders, and the overall operation of the protocol. TRU holders have the power to approve new portfolio managers and borrowers, as well as manage key decisions regarding the treasury and partnerships.
TrueFi aims to bridge the gap between DeFi and traditional financial markets, striving for deeper integration with traditional financial institutions and expanding DeFi collaboration with major DAOs and lending protocols. Future enhancements include tranching to allow institutional investors to choose their risk-return profiles within portfolios, and making loans and portfolios compatible with the ERC-4626 standard for wider DeFi integration.
