TrueFi

Base

April

Optimism

Trinity

Decentralized credit protocol TrueFi has introduced the Trinity protocol with an eye on increasing the capital efficiency of on-chain real-world assets (RWA). The new protocol will use the dollar-based TRI token backed by collateral assets to make it easier for users to acquire leverage and hedge risks.
The interest-bearing tfBILL, a tokenized short-term United States Treasury bill product, will be the first collateral asset used to back TRI. Other TrueFi pools, RWA from different protocols and other crypto-native assets could also be used.
A user could mint TRI on Trinity using tfBill or other assets as collateral and swap it for a stablecoin on an automated market maker. The user could then mint TRI through a smart contract it calls a vessel, borrow up to 92% of the loan-to-value ratio in TRI, swap that for the stablecoin again, mint more TRI and repeat the process. Eventually, the process would allow the user to earn up to 15–20% net yield.
<figure data-ct-non-breakable="true"><img src="https://s3.cointelegraph.com/uploads/2024-03/29cb0cb7-29fe-4c23-b898-d832c2ca6f49.png" alt="" title="">
 <figcaption style="text-align: center;">Schematic of TRI use cases. Source: trinityprotocol.xyz
 </figcaption>
</figure>
Alternatively, a user could swap stablecoin for TRI and stake it in the sTRI vault, earning fees for a yield “expected to be near or above T-bill rates.” TRI could also be traded on secondary markets.
Related: <a href="https://cointelegraph.com/news/truefi-issues-first-default-notice-on-3-4m-busd-loan" rel="noopener noreferrer nofollow">TrueFi issues first default notice on $3.4M BUSD loan</a>
The peak of on-chain RWA was in April 2022, according to TrueFi. It had hundreds of millions in loans to trading firms outstanding at that time. Now, the market for on-chain credit is only a third of the peak level.
Trinity is live on the Optimism Sepolia testnet. After an audit is finalized, initial users will be selected. It expects to have a $40 million TRI mint cap on the version that launches.
<figure data-ct-non-breakable="true"><img src="https://s3.cointelegraph.com/uploads/2024-03/0b532d73-adb5-4962-bd8f-de6024ffb2e3.png" alt="" title="">
 <figcaption style="text-align: center;">Source: Trueholder
 </figcaption>
</figure>
TrueFi is proposing to launch Trinity on Coinbase’s layer-2 Base network. It would not be available to U.S. users under the “most conservative initial rollout.” Base contains around 150,000 verified addresses that can confirm that a user is not U.S.-based and that institutions are whitelisted, it pointed out.
TrueFi <a href="https://cointelegraph.com/news/a16z-backed-truefi-launches-defi-lending-market-for-asset-managers" rel="noopener noreferrer nofollow">introduced its first protocol</a> in 2020 and originated $1 billion in loans in 2021.
Magazine: <a href="https://cointelegraph.com/magazine/unstable-coins-de-pegging-bank-runs-other-risks-2023/" rel="noopener noreferrer nofollow">Unstablecoins: Depegging, bank runs and other risks loom</a>

TrueFi introduces dollar-based TRI token for real-world asset trading

Cointelegraph

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