Decentralized finance (DeFi) lending and stablecoin platform TrustToken has secured a big seed spherical backed by huge 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, below lockup based on the announcement. CEO and co-founder, Rafael Cosman, stated:
“This fundraise marks a pivotal second for us: increasing our govt staff, increasing our technical staff, and increasing the scope of our protocol.”
TrueFi gives 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 resembling strains of credit score represents an $11 trillion business in conventional finance. Nevertheless, it’s just about remarkable in DeFi, because it’s composed virtually solely 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 to this point.
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, mentioned:
“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 will likely be helpful “for lenders to evaluate the place they wish to put their capital,” mentioned 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 beneficial properties 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 entire worth locked on the TrueFi platform is $225 million based on DeFiLlama, although it too has fallen from a peak of $300 million in early July.
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