This article was first published on TrueFi - Medium
First Use Case: Protecting TUSD Lenders and TRU Stakers From Outsized Losses
Launched in November 2020, TrueFi has now served almost $100m of zero-collateral TUSD loans to leading firms like Alameda Research, Wintermute Trading, and Invictus Capital, accomplishing a 100% repayment rate. While we have achieved great success thus far, we are committed to further enhancing TrueFi as one of the safest protocols in the industry for obtaining capital-efficient loans, making it even more attractive to borrowers and lenders alike.
One of the key ways we are hardening the TrueFi platform is through an expansion of our integration with market-leading oracle solution Chainlink, particularly to ensure that asset prices used by TrueFi match global asset prices as aggregated from across the wider market.
Chainlink is already being used by TUSD for its Proof of Reserve functionality, which enables DeFi applications to automatically verify on-chain that each TUSD stablecoin is backed 1:1 with US dollars held in reserve. Given its successful implementation, it’s only natural to expand our Chainlink integration to secure TrustToken’s second act, TrueFi, via support from Chainlink’s highly accurate, available, and tamperproof price oracles.
TrueFi is using the Chainlink Price Feeds on mainnet to determine the current price of TrueFi’s native token, TRU, relative to TUSD and ETH if the smart contract needs to execute automated coverage of loan defaults.
Learn more about the integration below:
How will the TRU Price Feeds be used?
With more capital demand every week from borrowers migrating to the TrueFi platform, it’s more important than ever to make TrueFi the best possible platform for lenders. As such, one of TrueFi’s biggest initiatives in Q2 is limiting the downside from a potential loan default through the launch of a community “SAFU” fund and V2 staking.
A key mechanism to serve both lenders and stakers in TrueFi V2 ...
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