What is TrueFi (TRU)?

Deep Dive

1. Purpose & Value Proposition

TrueFi tackles DeFi’s over-reliance on collateral by building a permissionless credit system. Borrowers (often institutions) access loans without locking assets, while lenders earn yields from vetted opportunities. TRU holders stake tokens to vote on loan approvals, creating a decentralized credit bureau that replaces centralized underwriting. This model targets real-world use cases like SME financing and trade credit, positioning TrueFi as a gateway for institutional capital into DeFi (TrueFiDAO).

2. Technology & Architecture

Built on Ethereum, TrueFi uses smart contracts to automate loan terms, repayments, and defaults. Its credit prediction market lets TRU stakers signal confidence in borrowers—higher stakes mean greater voting power but also risk of slashing if loans default. Recent upgrades include integrations with privacy-focused protocols (e.g., zero-knowledge proofs for confidential credit scores) and HyperEVM for NFT-backed lending.

3. Tokenomics & Governance

TRU serves three roles:
- Governance: Voting on protocol upgrades, loan approvals, and treasury allocations.
- Staking: Stakers earn fees but face penalties for approving bad loans.
- Incentives: Rewards liquidity providers in lending pools.
The fixed supply (1.34B tokens) aligns long-term incentives, with ~99% already circulating as of December 2025.

Conclusion

TrueFi reimagines credit markets by merging decentralized governance with real-world debt instruments, leveraging TRU to align stakeholder incentives. While its uncollateralized model carries unique risks, strategic moves into RWA and regulatory compliance suggest potential to bridge TradFi and DeFi. How will TrueFi balance decentralization with the due diligence demands of institutional borrowers?