TrueFi Unveils Lending Protocol for Tokenized Real-World Assets; TRU Jumps 14%

Decentralized
finance
(DeFi)
lender
TrueFi
unveiled
plans
Monday
to
start
a
real-world-asset-based
(RWA)
lending
platform
called
Trinity
to
boost
utility
for
its
tokenized
U.S.
Treasury
offering.

Trinity
will
let
users
take
out
crypto
loans
using
tokenized
RWAs
as
collateral.
TrueFi’s
Treasury
bill
token
(tfBILL)
will
be
the
first,
with
plans
to
add
other
yield-generating
tokenized
products
in
the
future,
according
to
a

TrueFi
governance
proposal
by
ecosystem
developer
organization
Wallfacer
Labs.

Investors
will
be
able
to
borrow
the
platform’s
TRI
token
by
pledging
the
tfBILL
tokens,
using
the
borrowed
crypto
to
create

DeFi
strategies
to
earn
up
to
15%
annualized
yield,
the
proposal
said.
Investors
will
also
be
able
to
buy
TRI
tokens
on
secondary
markets
such
as

decentralized
exchanges,
and
stake
them
to
earn
a
yield
from
the
platform’s
borrowing
fees.

The
proposal
to
launch
Trinity
is
pending
approval
by
the
TrueFi

decentralized
autonomous
organization.

The
proposed
new
platform
follows
a
resurgence
in
DeFi
activity
in
recent
months,
with
crypto-native
yields
and
demand
for
leverage
rapidly
increasing
amid
the
roaring
digital
asset
bull
market.
The
CoinDesk
20
Index,
a
measure
of
the
most
liquid
crypto
tokens,
has

risen
almost
50%
since
the
start
of
the
year.

TrueFi
was
a
key
lender
during
the
previous
crypto
bull
cycle,
originating
over
$1.5
billion
of
undercollateralized
loans
mainly
to
trading
firms
and
market
makers.
As
crypto
prices
cratered
in
2022
with
multiple
firms
imploding,

some

borrowers
failed
to
repay
their
loans
and
depositors
fled.
The
protocol’s
total
value
locked
dropped
to
$20
million
by
the
end
of
2022
from
a
peak
of
over
$900
million
in
2021.

Last
year,
TrueFi
introduced
the
tokenized
U.S.
Treasury
offering,
which
had
recently
attracted
$8.7
million
of
deposits.

TrueFi’s
governance
token

(TRU)
jumped
14%
after
the
proposal
was
published
at
15:53
UTC,
and
has
gained
some
20%
in
the
past
24
hours.