Decentralization FTW: TrustToken To Further Decentralize Its TrueFi Platform And Bring More Institutions Into The DeFi Industry

DeFi is an industry that’s been booming in 2020, and the popularity continues to grow in 2021 as well.

Decentralized Finance has been attracting the interest of big players for quite a while now, and its success continues to boost to the moon.

TrustToken reveals important partnership

There are more and more relevant entities that support and boost DeFi, and TrustToken is one of them. Not too long ago, we were addressing an important partnership that TrustToken had revealed.

Just in case you don’t know, TrustToken is the team behind TrueFi uncollateralized lending platform and maker of TrueUSD (the world’s dollar-backed stablecoin with live on-chain audits).

They just revealed that they are teaming up with Secret Network, which is the first public blockchain that offers privacy-preserving smart contracts. Check out more about the subject in our previous article. 

Giving uncollateralized lines of credit in the DeFi space

As we keep repeating for a while now, institutional investors are a key element in the crypto space because big players are vital for the mainstream adoption of digital assets and their underlying technology, the blockchain.

TrueFi is the very first DeFi platform for uncollateralized lending and borrowing. Why is this important? Well, because this unique model is basically the very first one that offers uncollateralized lines of credit in the DeFi industry.

In other words, this means that the next step will be opening the doors to institutions that rely on stable credit in order to benefit the most from DeFi.

According to official notes, TrueFi’s uncollateralized lines-of-credit and a boosted credit model will make sure to allow borrowers on TrueFi to acquire a score that resembles a lot to the one of a traditional “credit score”.

This means that instead of the community voting on individual/flash loans trusted users on TrueFi platform would be granted access to a stable line of credit and on more fixed terms.

More than that, it’s also been revealed that by reliably bringing off-chain info on-chain and mixing that with the existing protocol data such as repayment history, the platform is aiming really high. The main goal is to become a leader in risk assessment.

Credit will be assessed via a multivariable model that includes things such as legal jurisdiction, leverage, Assets-Under-Management, options exposure, and many more.

We strongly suggest that you check out the roadmap for TrueFi protocol in order to see some pretty exciting plans that they are developing.

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An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.