A Paradigm Shift in Onchain Credit Systems TrueFiTrueFi represents a pioneering leap in the realm of decentralized finance (DeFi), specifically tailored to enhance the ecosystem of onchain credit. Launched in November 2020, TrueFi has established itself not merely as a platform but as a modular infrastructure designed to facilitate and innovate the mechanics of credit in the blockchain environment.
At its core, TrueFi serves as a nexus, intricately weaving together various stakeholders in the credit market through the use of sophisticated smart contract technology. This system is governed by the TRU token, which plays a pivotal role in the governance and operational mechanics of the platform. Here’s how it functions:
Lenders: Individuals or entities looking to earn interest on their capital by lending it out in a secure, transparent blockchain environment.
Borrowers: A diverse group, including but not limited to crypto-focused institutions, traditional fintech companies, trading entities, and credit funds seeking capital. These borrowers benefit from the flexibility and accessibility of funds without the conventional barriers presented by traditional banking systems.
Portfolio Managers: These are key players who manage loan portfolios, optimizing for risk and return, thereby ensuring the health and profitability of the lending pools.
Loan Origination: Since its inception, TrueFi has successfully originated loans amounting to over $1.7 billion, spread across more than 30 borrowers. This figure not only highlights the platform's capacity to handle substantial financial throughput but also underscores its growing acceptance and trust within the DeFi community. TrueFi’s design as a modular infrastructure allows for scalability and adaptability, crucial in the fast-evolving blockchain landscape. This modularity ensures that TrueFi can integrate with various other DeFi protocols, enhancing its utility and extending its reach across different aspects of onchain financial services.
Team
Raphael Kosman is a co-founder who plays a significant role in TrueFi's strategic direction and technical development, given the typical responsibilities of co-founders in tech startups
Tory Reiss - also a co-founder and has been involved in shaping the company's vision, business model and partnerships, given the collaborative nature of founding teams.
Jai An - Jai An's role as another co-founder covers various aspects of the business, from technology to business development, contributing to TrueFi's core functionality and expansion.
Stephen Cade - as a co-founder, Stephen will play an important role in TrueFi's start-up and current growth phases, focusing on product and technology.
Alex de Lorraine - as CEO, Alex leads the company, driving its strategic vision, operational efficiency and market positioning in the DeFi space.
Bill Wolf - as CIO (Chief Investment Officer), Bill oversees investment strategies and manages the lending and borrowing arrangements that are central to TrueFi's operations.
Diana Bouchard - serves as General Counsel and handles legal matters to ensure TrueFi's compliance with relevant regulations and laws, which is critical for the financial and blockchain sectors.
Esben Svane Stockmarr - Advisor, he can advise on strategic decisions, bringing in experience from other sectors or specific market knowledge.
Ichiro Minamikawa is also listed as an advisor. Ichiro may contribute to TrueFi's strategy in terms of market expansion, technology partnerships or other specialized advice.
Dovey Wan - As an advisor, who is active in the blockchain and cryptocurrency community (as noted in X's posts about her involvement in various discussions and personal anecdotes in the crypto space), is likely to bring insight into market trends, community engagement, or even technological innovation in the blockchain ecosystem.
The composition of the team demonstrates a combination of technology, finance, legal and strategic advisory experience, which is critical for a platform like TrueFi that operates at the intersection of finance and blockchain technology. This team structure is designed to navigate the complexities of decentralized finance, driving growth, compliance, and innovation in collateral-free lending.
Fundraising
Total Raised $ 32.50M
Andreessen Horowitz (a16z) - Known for its significant investments in tech and crypto sectors, a16z has participated in TrueFi's funding, indicating strong venture capital confidence in TrueFi's model.
Jump Trading and Jump Capital - Both entities are involved, showcasing interest from trading firms that might benefit from or contribute to the DeFi lending ecosystem.
BlockTower Capital - A cryptocurrency investment firm that has backed multiple rounds for TrueFi, suggesting a strong belief in the project's potential within the DeFi space.
Distributed Global - Another venture capital firm focusing on blockchain technologies, indicating TrueFi's appeal to specialized crypto venture funds.
Slow Ventures - This firm has also invested, known for backing tech startups at various stages.
Foundation Capital and DHVC (Danhua Capital) - These investments reflect a broader interest from venture capitalists in extending TrueFi's capabilities or integrating its technology into broader financial services.
Alameda Research - Before its known issues, Alameda was involved in private sales, illustrating early interest from major crypto trading entities.
GGV Capital - A firm with a global perspective, investing in local and global tech companies, which might be looking at TrueFi's expansion or integration capabilities.
Private and Strategic Rounds: TrueFi has gone through various rounds of funding, including private sales and strategic rounds. These rounds are not just about raising capital but also about aligning with strategic partners who can contribute to the ecosystem's growth, technology, or market access.
Token Sales: While not traditional ICOs, the sale of TRU tokens serves as a form of fundraising where tokens are used for governance and to incentivize participation in the TrueFi lending protocol. This method leverages the community's direct involvement in the protocol's success.
Focus on Real-World Assets (RWA): The introduction of Trinity, as mentioned in recent developments, focuses on lending against tokenized real-world assets. This initiative could potentially open up new avenues for fundraising by attracting investors interested in combining traditional finance (TradFi) with DeFi.
Tokenomics
Incentive Distribution: 39.00%
Tokens: 565.50 M TRU
Dedicated to rewarding community engagement and ecosystem growth, this slice of the pie incentivizes participation and long-term commitment.
Private Sale: 28.50%
Purpose: Early investment rounds that fuel initial development and market entry strategies, ensuring the project has the necessary resources to thrive.
Team & Management: 18.50%
Investment in Talent: Allocated to the visionaries, developers, and managers who turn concepts into reality, this ensures the team's interests are aligned with the project's success.
Grants / Company: 9.50%
Innovation & Expansion: These funds are set aside for grants aimed at fostering innovation, research, community projects, and the overall expansion of the company's reach.
Future Team: 4.50%
Future-proofing Talent: Reserved for future hires, this allocation allows for the continuous attraction of top-tier talent as the project evolves.
This allocation strategy not only supports the immediate operational needs but also invests in the future growth and community engagement, ensuring a balanced approach to token distribution.
Blockchain
Ironically, the largest holders of TRU are two of the most famous crypto exchanges - Binance and Coinbase.
Two whales have recently emerged that have accumulated 1.9% of the entire issue each. This indicates insider information within the project and quite large purchases at market price!
A number of well-known companies (Circle, Worldcoin and others) also have a large amount of TRU on their wallets. This indicates its continued widespread use in the community and among the cryptocommunity. GSR have already listed their tokens on the exchange to pump up the price, this explains the above mentioned about the large number of tokens on the exchange.
Conclusion
The project is very promising from the point of view of community use, as well as from the point of view of asset price growth. GSR market maker knows how to pump up such projects, moreover, the issue of tokens on exchanges is almost equal to the issue in the hands of GSR. The percentage of tokens in the same hands is off the charts! The team continues to actively develop the project, as well as working on integrations into all possible areas of economics and crypto. The whales have finished accumulating, the breakthrough is very soon. Buckle up!
Best wishes, Horban Brothers!
