Through a press release, TrustToken, which boasts several fiat currency stablecoins, announced TrueFi, a new protocol that focuses on decentralized finance (DeFi) and uses their token to interact.
This is a loan-oriented protocol based on the Ethereum blockchain that allows lenders to earn interest based on the total amount of TUSD they provide in the various protocols, resulting in even a double-digit APY. For example on TrueFi (TFI) it is currently 55.1%.
The system exploits one of the macro areas of decentralized finance, which is lending and borrowing, i.e. lending to earn interest on your crypto, or taking out a crypto loan, paying interest on the loan.
TrustToken (TRU) tokens can be staked to earn additional interest for locking the asset. In addition, this token also acts as a governance token and this allows users to approve or not approve a particular decision.
TrueFi, the TrustToken protocol is already a success
Incidentally, only a few hours after its launch it has already reached and exceeded the $35 million of funds locked within this protocol, demonstrating how users are always looking for platforms to exploit their crypto rather than leave them in their wallets.
Obviously, we are talking about protocols open to everyone to lend and borrow crypto assets as opposed to traditional finance, as TrustToken’s co-founder Rafael Cosman has also pointed out:
“The aim is for TrueFi to become the ultimate market-driven, automated credit rating and lending system, freeing money to move wherever it creates the most value. It’s a significant pillar in our mission to increase access to financial opportunities, and our wide distribution of TRU will let anyone join in shaping the future of finance”.
In short, decentralized finance (DeFi) is only just beginning and there are already many sectors in which it operates at macro level. The multiplication of platforms in this sector shows how users are moving, realizing the opportunities that the sector offers, in particular at this time of crisis in which protecting one’s savings has become crucial.