Token $TRU of TrueFi has doubled in price since Binance announced the use of stablecoin $TUSD. So what is $TRU token and what is its connection to $TUSD?
What is TrueFi and its $TRU token?
Truefi is a decentralized protocol that provides loans to users without collateral. Loans are disbursed based on a peer-to-peer mechanism and not based on third parties. This means that the system will evaluate the borrower’s ability through an internal credit score and voting from $TRU stakers.
The $TUSD coin is one of the stablecoins used in the Truefi protocol (in addition to USDC, USDT, etc.). The more stablecoin $TUSD is issued, the more beneficial the protocol will be. The figure below describes the protocol’s operation process in order from 1 to 6.
It can be seen that when the borrower sends a loan request, $TRU stakers have the right to vote to approve the loan request. If the staker votes incorrectly, they will be penalized, and the correct voter will receive a $TRU reward.
What is the relationship between $TRU and $TUSD?
Previously, $TUSD was managed by TrustToken, but in 2020, the company sold TUSD to a company called TechteryX, as announced by the CEO of this company.
Accordingly, the acquisition was led by Techteryx, a conglomerate headquartered in Asia with businesses in Hong Kong, Singapore, Beijing, and various other fields such as information technology, entertainment, and real estate.
It can be understood that TrustToken, Truefi, and $TUSD previously belonged to the same company (it is unclear which company is the parent company). Then, $TUSD was sold to Techteryx, and TrustToken also separated from the TrueFi protocol and renamed itself Archblock last year.
Other unique features of TrueFi
Currently, TrueFi is known as a decentralized lending platform with many unique features such as:
Withdraw at any time: Users can lend without a lock-up period because they have enough liquidity to exit the loan, allowing users to fully control their assets.
Competitive profits: Users can benefit from high profits in DeFi across many assets.
Default protection: Loans are secured by the TrueFi user Asset Safety Fund (SAFU) and betting mechanism. Both provide good protection for lenders by preventing default.
Maximum transparency: Users can track their money when lending to TrueFi borrowers online and review frequent validations.
Audited borrowers: TrueFi borrowers go through a rigorous evaluation process, receive community approval, and sign a legally binding loan agreement.
TRU holder rights: TRU owners control governance decisions such as loan interest rates, distribution of fees, and collateral requirements.
Total Value Lock (TVL) of TrueFi
$TRU currently has a TVL of ~25M USD, quite modest compared to its market cap of ~128M USD.
Whales holding $TRU TRU was once held quite a lot by Blocktower Capital, but they sold $TRU when the token price rose sharply during Binance’s announcement of a partnership with $TUSD.
Currently, we still have Justin Sun and Alameda Research holding quite a lot of $TRU. The average price at which these two parties accumulate $TRU is around $0.03 – $0.04.
In addition, we also have the whale wallet address 0x4322fd98f95a219d2aae2bba6664e3574b4c3708 that has accumulated a lot of $TRU since the price was at $0.06 and is still accumulating more as $TRU corrects.
To see more whales holding $TRU, as well as to set alerts, you can visit the following page: https://s.depocket.com/FU6QeZ