What is TrueFi (TRU)?
TRU is the ERC-20 utility token for the TrueFi platform. Until 2021, it also served as the governance token but has since been replaced by stkTRU. TrueFi is a decentralized, uncollateralized lending platform. It allows users to borrow USDC, BUSD, and TUSD on-chain. You can access the historical TRU price data in the dynamic chart above.
Who Founded TrueFi?
TrueFi is the product of TrustFinance, a DeFi solutions provider. The CEO of the company is Rafael Cosman. He is an entrepreneur and machine learning engineer who has worked on various projects in the tech industry.
TrueFi aims to simplify the process of bringing traditional assets into the decentralized space by allowing users to borrow and lend assets that are backed by fiat currencies, such as USDC, BUSD, and TUSD.
The TrueFi platform launched in November 2020. Although the TRU price has been relatively volatile, it has almost never exceeded the $1 mark. During TrueFi's first year in the market, the highest-recorded price was $1.02 on August 12, 2021.
What Are the Features of TrueFi?
The maximum supply of TRU is hard-capped at ​​1,450,000,000. According to the whitepaper, there are no plans to mint new tokens or re-mint burned assets. This makes it a deflationary currency. With time, the TrueFi price is expected to rise as the number of tokens in circulation decreases.
The TRU token is used to access the services on the TrueFi platform. Lenders provide the capital that is available for borrowing. Borrowers put forward requests to borrow funds from the liquidity pools. Stakers have the authority to vote on borrowing approvals and provide the lenders with security against defaults.
Both lenders and stakers are eligible to earn TRU tokens as an incentive to continue contributing to the platform. They can convert TRU to USDC, BUSD, and TUSD and vice versa. The TrueFi price is not pegged to the stablecoin value and varies based on the market capitalization.
Until 2021, TRU also served as the governance token for the community. However, the stkTRU was launched to allow users that stake their assets to participate in the network governance without needing to unstake. This allows for a more flexible utilization of TRU.
