How TrueFi's Credit Model Facilitates Uncollateralized Lending with TRU
TRU is a cryptocurrency token that serves as the native token for the TrueFi protocol. TrueFi is a DeFi platform that provides uncollateralized lending to businesses and individuals. The platform uses smart contracts and off-chain credit assessment to facilitate lending without requiring collateral. The credit model is based on a combination of on-chain and off-chain data to assess creditworthiness and determine lending rates. TrueFi aims to provide more flexible lending options for borrowers who may not have sufficient collateral.
TRU has several use cases within the TrueFi ecosystem. TRU holders can participate in on-chain governance decisions related to the TrueFi protocol, stake their TRU to earn rewards from the protocol's liquidity pools, and use their TRU as collateral to provide liquidity to TrueFi's lending pools. TRU also has a token burn mechanism, which helps to reduce the total supply of TRU over time. A portion of TRU transaction fees are used to buy back and burn TRU tokens, which can help to increase the token's value over time.
TrueFi has partnerships with several well-known DeFi projects, including Chainlink and Uniswap, which help to increase TrueFi's visibility and provide additional liquidity options for TRU holders. The platform also has a community-driven approach to governance, with proposals and decisions voted on by TRU holders.
While TRU and TUSD are both cryptocurrency tokens, they serve different functions within the cryptocurrency ecosystem. TRU is primarily used for governance and staking within the TrueFi ecosystem and can also be used as collateral to provide liquidity to TrueFi's lending pools. TUSD, on the other hand, is a stablecoin that is designed to provide users with a stable and reliable cryptocurrency that can be used for transactions and trading without the volatility of other cryptocurrencies. While TrueFi may accept TUSD as collateral for its lending pools and TUSD can be used to purchase TRU on cryptocurrency exchanges, the two tokens are fundamentally different in their design and purpose.