In today’s article, we will learn about an interesting project that offers uncollateralized lending, TrueFi.
So, what exactly is this project? How does it function? What information about this project should we pay attention to? This article will give every piece of information you need to know.
What is TrueFi?
TrueFi is a protocol for uncollateralized lending powered by the first on-chain credit scores, and TRU. The native token used in this ecosystem fuels all transactions within True Credit’s system which includes staking rewards as well as governance rights that allow users to vote with their tokens when it comes down to key decisions affecting its future development path.
TrueFi aims to become a credit rating and lending protocol in the long term, demanding much more than just minimum/maximum APY. It also requires risky users to take on increased responsibility for onboarding pre-approved whitelist members as well as approving new loan types.
How does TrueFi work?
With the goal of helping cryptocurrency lenders enjoy attractive, sustainable rates of return while giving borrowers predictable loans that maximize their working capital. TrueFi aims at creating a lending market where DeFi enthusiasts can put up collateralized or uncollateralized funds as security for an instant loan with very low interest rates.
All functions on TrueFi are fully transparent to support lenders and borrowers with fund flows while using the project. This is how the process works:
- When lenders add assets to a TrueFi lending pool, they are earning interest and TRU. Any unused capital is sent into Curve.fi’s protocol so that more financing can be provided for new loans in the future.
- Borrowers then will be processed through a whitelist which reviews their financial situation, the signing agreement and the community’s approval.
- Once the process is completed. The request will be submitted for approval which will include interest rate, credit limit and the capital granted. The final step is to subject the application to TRU community approval who will vote Yes or No on the loan.
- Loan agreements are binding contracts between lenders and borrowers. The Borrower must return the capital granted with the interest on the loan. The terms of these documents state what happens if either party breaches their end of the agreement; legal action may be taken to collect repayment.
What is TRU Token?
The native TRU token is the utility token of the TrueFi project. The token is used for these main activities:
- Staking: Users can stake TRU tokens with staking ROI up to 27.27%
- Governance: Holders of TRU tokens are able to participate in the voting proposals such as community actions, development plans or changes to the protocol.
Furthermore, TRU tokens are also used to protect lenders from loan defaults and to provide liquidity provision for DEXs such as Uniswap.
Detailed information about TRU Token
TRU Token Metrics
- Token Name: TRU Token.
- Ticker: TRU.
- Blockchain: Ethereum.
- Token Standard: ERC-20.
- Contract: 0x4c19596f5aaff459fa38b0f7ed92f11ae6543784
- Token Type: Governance.
- Total Supply: 1,445,821,477 TRU.
- Circulating Supply: 143,913,643 TRU.
TRU Token Allocation
- Incentive Distribution: 39%
- Private Sale: 28.5%
- Team and Management: 18.5%
- Grants/Company: 9.5%
- Future Team: 4.5%
TRU Token Sale & Release Schedule
The presale of TRU Tokens ended with 387m tokens sold. All of these tokens are locked for 2 years and will be released quarterly. The next unlock dates are:
- November 16, 2021
- February 14, 2022
- May 15, 2022
- August 13, 2022
How to buy TRU Token
You can use Coin98 Exchange to swap other tokens for TRU following these simple steps on: https://exchange.coin98.com/
Step 1: Connect Coin98 Extension Wallet.
Step 2: Select Uniswap
Step 3: Choose coins/tokens for trading:
- Search TRU.
- If the result does not come up, you can paste the contract of TRU into the search box: 0x4c19596f5aaff459fa38b0f7ed92f11ae6543784
Step 4: Adjust the amount you want to swap.
Step 5: Adjust the gas fee, then click Approve.
How to mine TRU
TRU holders can stake their TRU tokens with 27.17% ROI yearly.
How to store TRU Token
You can store TRU token on Coin98 Wallet with these steps:
Step 1: Open Coin98 Wallet & click Receive on the home screen.
Step 2: Search TRU Token.
Step 3: Click on the correct result, copy the wallet address and send TRU to this address.
Roadmaps and Updates
By August 18th, 2021, TrueFi will launch Phase 4 in the development plan. These features will be implemented:
- Open Board ERC-20 Asset Support.
- Expanded Liquidity for LP tokens.
- Open Loan Token Fundraising.
Team, Investors, and Partners
Rafael Cosman is the CEO & Co-founder of TrueFi project. He graduated from Stanford University and used to work at Google as an Engineer.
TrueFi has raised a total of $12.5M in funding over 1 round, which was their Initial Coin Offering (ICO) to fund the launch and development of the project.
They are backed by 4 investors including a16z and Alameda Research, one of the most successful and popular ventures and market-maker in the industry.
The project partnered with various projects in the industry. However, the notable ones are the integration with Binance, Chainlink and Sushiswap.
These partnerships will make the TruFi platform more lucrative, robust and safer for its users.
Is TRU a good investment
This article has provided some of the main ideas related to the TRU token and its implications. Still, it is important to note that there are a few key points that investors should take into account before making investment decisions:
- For the first 6 months after the launch, the TRU farmed by the project will be either burned or sent back to the community. Furthermore, there will be no minting actions available on the platform. These events will eventually decrease the total supply of TRU tokens.
- TrueFi recently expanded the project by integrating with Chainlink and other DEXs such as Sushiswap, Uniswap. These partnerships will improve the performance of the project for accurate real-time contract data. The farm migrations to DEXs also help the project to develop further in the DeFi space.
- Undercollateralized is an innovative method of lending where users are allowed to borrow more than their collateral assets. However, borrowers might feel the process is not smooth as the decision is based on the votes of stakers.
I hope you have gained all of the important information about the token including its features and highlights throughout this topic.
If you have any questions or want to know more about TRU, please feel free to leave a comment below and join Coin98 Community for further discussions about Crypto.
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