The most prominent uncollateralized lending on-chain, TrueFi, partners with the world’s leading cryptocurrency exchange Binance for on-platform TRU staking.
TRU holders can enjoy directly participating in the TrueFi protocol lending and assurance functionality on Binance. The incentives being offered with the highest APY of 30% for the holders. The integration enables Binance users to access TrueFi, allowing traders to get profit from their TRU holding in just a few clicks. Meanwhile, the integration helps increase the amount of locked-up TRU. Currently, the locked-up amount is already at 32% of the total circulating supply which is 101 million TRU.
More so, TrueFi is a protocol that creates interest-bearing pools with a high APR for liquidity providers. It also adds a utility and rewards procedures utilizing TrustTokens (TRU). The protocol also rewards participants for maintaining stable, high APRs. In addition, uncollateralized loans and decentralized lending are used in order to reach high pool interest rates. TrueFi is developed by TrustLabs in partnership with EthWorks.
TrueFi Launches First Crypto Credit Score Model
Also, TrustToken is the core development team behind the TrueFi collateral-free lending platform and maker of well-known asset-backed tokens that include TrueUSD. It has launched its first crypto credit score model, which disrupts conventional crypto borrowing methodology.
This is because in the conventional process one needs to post collateral and lenders need to approve each transaction. TrueFi provides a lending process that seems like a more traditional fiat loan approval methodology. The process is based on creditworthiness and develops a unique crypto-native credit score model. Thus offering reputation-based lending on the TrueFi platform and across decentralized finance (DeFi). TrueFi’s new credit model has successfully originated over $100 million in unsecured loans with no defaults.
However, borrowers need to go through a diligence process of Know-Your-Business questions, repayment history, and also credit metrics like leverage and risk exposure to assess the loan. Afterwhich a score is created for the applicant with TrueFi loan terms, offering lenders with on-chain and off-chain data for staking.
TrueFi also expands the lending pool by adding USD Coin (USDC) and Tether (USDT) for a larger set of depositors, competitive earning, with no risk of impermanent loss, also common in many other yield farms.
TrueFi’s Other Valuable Industry Integration
Making deep moves into DeFi space, TrueFi also recently integrated with Chainlink, for accurate real-time contract data. Added to this, they have announced the migration of its TRU Farm to SushiSwap.
Chainlink is the industry-leading decentralized oracle network that offers real-world data to smart contracts on the blockchain. TrueFi’s smart contracts now utilized Chainlink price feeds to access aggregated price data on TRU. More so, exact data is critical for TRU liquidations for defaulted loans, automatically covering a part of the lender’s losses at the most accurate TRU price relative to the market.
TrustToken also announces the migration of its TRU Farm to SushiSwap, the popular decentralized exchange (DEX) built on an automated market-making (AMM) that ensures liquidity for a wide range of ERC20 tokens. Moreover, this migration acts as a move to develop even further inroads in the DeFi space. TrueFi’s TRU token is among the first assets to benefit from Sushiswap V2’s new ‘Double Rewards’ offering, allowing Sushiswap liquidity providers to enjoy both TrueFi’s native token TRU, and SushiSwap’s native token, SUSHI. The combination of rewards, incorporated into the farm through Onsen provides the pool with over 100% APY at launch.