Decentralized finance (DeFi) lending and stablecoin platform TrustToken has secured a big seed spherical backed by massive names in enterprise capital investing.
The platform behind the TrueFi DeFi lending protocol has raised $12.5 million in a funding spherical led by Blocktower Capital, Andreessen Horowitz (a16z), and Alameda Analysis.
The VC corporations bought the protocol’s native tokens, TRU, underneath lockup in accordance with the announcement. CEO and co-founder, Rafael Cosman, stated: “This fundraise marks a pivotal second for us: increasing our government staff, increasing our technical staff, and increasing the scope of our protocol.”
TrueFi provides collateral-free loans, powered by the world’s first on-chain credit score scores, and produces the TUSD stablecoin. It claims that the corporate’s “TrueCurrencies” are the world’s first on-chain independently-verified, absolutely collateralized stablecoins.
DeFi credit score scores
The protocol defined that unsecured lending similar to traces of credit score represents an $11 trillion trade in conventional finance. Nonetheless, it’s just about remarkable in DeFi, because it’s composed virtually fully of over-collateralized loans.
It added that since facilitating DeFi’s first uncollateralized mortgage in November 2020, the TrueFi protocol has originated over $250 million in such loans and paid out over $2 million to lenders, with no defaults so far.
Cosman defined that scaling the platform will permit DeFi to supply extra diversified yields for lenders and even higher capital entry for creditworthy debtors. Alameda Research CEO, Sam Bankman-Fried, stated: “We see TrueFi unsecured loans rising far past crypto, and we plan to be companions and customers at each stage of the protocol’s development,”
TrueFi’s on-chain credit score scores might be useful “for lenders to evaluate the place they wish to put their capital,” stated Blake Richardson, an investor at BlockTower.
In late June, TrueFi introduced new integrations with Binance, Chainlink, and SushiSwap, because it embedded additional into the DeFi ecosystem.
TRU costs double
TrueFi’s native TRU governance and staking token has skyrocketed on the information, doubling in worth over the previous few hours. TRU has surged 98% over the previous 24 hours to hit $0.313 on the time of press.
The token has constructed on positive factors of 130% over the previous week, however it’s nonetheless down 50% from its mid-February all-time excessive of $0.615.
There’s a circulating provide of 369 million tokens, giving it a market capitalization of $116 million. The full worth locked on the TrueFi platform is $225 million in accordance with DeFiLlama, although it too has fallen from a peak of $300 million in early July.
(Except for the headline, this story has not been edited by The Technology Express staff and is published from a syndicated feed)
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