TrueFi TRU is the native ERC-20 utility token of TrueFi, a decentralized finance (DeFi) platform specializing in unsecured lending. Built on blockchain technology, TrueFi offers institutional-grade borrowers fast access to cryptocurrency loans without collateral requirements. Governance of the protocol, including loan approvals and platform direction, is managed by TRU token holders, who earn rewards for their participation.
How TrueFi TRU Works
TrueFi combines centralized and decentralized finance models to enable trustless lending. Launched by TrustToken—the creator of the TrueUSD (TUSD) stablecoin—the platform has rapidly evolved into a decentralized ecosystem.
Key Features:
- Unsecured Lending: Institutional borrowers like Alameda Research and Amber Group access loans without collateral.
- Governance: TRU holders vote on new borrowers, loan terms, and protocol upgrades.
- Rewards: Participants earn TRU tokens and a share of platform interest.
Digital Assets Powering TrueFi TRU
TrueFi currently supports loans in three major stablecoins:
| Stablecoin | Backing | Issuer | Key Features |
|---|---|---|---|
| USDC | 1:1 USD reserves | Circle & Coinbase | Audited, widely adopted |
| USDT | Mixed reserves (cash, bonds, etc.) | Tether Limited | Largest stablecoin by market cap |
| TUSD | 1:1 USD reserves | TrustToken | Real-time attestations |
Future expansions may include wrapped Bitcoin (wBTC), Ethereum, and other ERC-20 tokens as collateral.
👉 Discover how to stake TRU for passive income
Why Use TrueFi TRU?
- Transparency: On-chain credit scoring.
- Decentralization: Community-driven governance.
- Scalability: Supports high-volume institutional loans.
FAQs
1. What is the purpose of the TRU token?
TRU governs the TrueFi protocol, allowing holders to vote on loans and earn rewards.
2. How does TrueFi ensure loan repayment without collateral?
Borrowers undergo creditworthiness checks, and defaults reduce their on-chain reputation.
3. Can retail investors participate in TrueFi lending?
Yes, users can deposit stablecoins to earn interest or stake TRU for governance rights.
👉 Explore TrueFi’s latest APY rates
4. Is TrueFi audited for security?
Yes, the protocol undergoes regular smart contract audits by firms like Quantstamp.
Conclusion
TrueFi TRU pioneers uncollateralized DeFi lending, merging institutional finance with blockchain transparency. By leveraging stablecoins and community governance, it offers a scalable alternative to traditional loans.
For deeper insights, review TRU’s performance on CoinGecko or CoinMarketCap.
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