Decentralized finance (DeFi) has been one of the main driving forces that has heated up the crypto market. While newcomers want to buy BTC or ETH, more technical investors have turned to DeFi, in order to benefit from its incredible returns. As we know, new tokens are being released every day, and some of them bring their innovative features to the ecosystem, for example, TrueFi, an uncollateralized DeFi lending platform, where lenders can borrow cryptocurrencies like Aave, Venus and Compound, but without the need to lock up funds as collateral.

TrueFi is a lending protocol developed by the TrustToken team – the people behind the TrueUSD (TUSD) stablecoin, which was launched in November 2020. The team aims to help crypto lenders to benefit from sustainable return rates, whilst at the same time granting borrowers reliable and predictable loans to optimize their working capital. TRU token fuels the TrueFi protocol, which can be used for staking, governance and yield farming.

Its lending process is comparable to a traditional fiat loan approval method, where borrowers need to go through a meticulous process of Know-Your-Business questioning, credit metrics like leverage and risk exposure and repayment history, to evaluate the loan, thereby presenting reputation-based lending on the TrueFi platform, and throughout the decentralized finance (DeFi) system. The most essential factor is that all lending and borrowing activities on the TrueFi platform are fully transparent, letting all users completely understand the protocol, transactions and flow of funds. TrueFi has also extended the lending pool by adding Tether (USDT) and USD Coin(USDC).

Looking to the future

To widen its coverage, TrueFi recently announced the migration of its TRU Farm to SushiSwap. Furthermore, TrueFi has also integrated with Chainlink, and entered into a partnership with Binance, where users can avail of the lending and assurance features without the need to leave the exchange.

As with TRU listings on major crypto exchanges, it is still too early to speculate whether the demand or value of TRU will rise, yet TrueFi is expected to grow rapidly, as TrustToken has done a lot of upgrades since its launch. These high-value blockchains are now revolutionizing the world of finance, and are highly likely to become major contributors to the future growth of DeFi.