Hi, my name is Ryan and I work at TrustToken, Inc.
We are the original creators of the TUSD stablecoin and the recently launched TrueFi protocol.
Summary
I am proposing to add the TrueFi LP token as collateral on CREAM. TrueFi is a protocol for on-chain uncollateralized borrowing/lending. It bridges some DeFi and CeFi elements to make this all possible. When a user deposits TUSD into TrueFi, they receive a TrueFi LP token which represents their proportional holdings in the pool.
For: Adding the TrueFi LP token as collateral to CREAM w/ 0% CF
Against: Do nothing
Background
TrueFi is a protocol for on-chain uncollateralized lending. It bridges some DeFi and CeFi elements to make this all possible. When a user deposits TUSD into TrueFi, they receive a TrueFi LP token which represents their proportional holdings in the pool.
You can read more about what goes into reviewing each loan here. Over time, we will implement additional data points bringing off-chain data on-chain.
Within the TrueFi ecosystem, there are two tokens associated with the protocol.
- TRU (0x4c19596f5aaff459fa38b0f7ed92f11ae6543784) - The governance and staking token
- TrueFi LP Token (0xa1e72267084192Db7387c8CC1328fadE470e4149) - Lenders’ representation of their proportion of assets in the TrueFi lending pool.
As an example, if you were to deposit 100 TUSD right now and the price of TrueFi LP token is $1.011 you would receive 98.911968348 TFI-LP tokens (100/1.011).
The pool tokens represent a claim on:
- TUSD (for now, the only asset that can be lent),
- yCRV (where TUSD that isn’t lent out to a borrower sits so that its always earning interest)
- CRV (earned because we keep funds in Curve)
- A % of each of the active loans tokens
You can see an example image below.
When a user deposits TUSD into the pool, they receive TFI-LP tokens.
At the moment, there is not much that users can do with their TFI-LP tokens so many of them wind up swapping it for TUSD on Uniswap if they want to exit.
We’d like to change that by allowing for CREAM to be the first place they can use their tokens as a form of collateral.
Motivation
Something particularly interesting would be if CREAM also added support for TUSD (I can make another post for this).
Then, for example, a user could…
→ Deposit 100 TUSD into TrueFi, receive 99 TrueFi LP Tokens
→ Deposit 99 TrueFi LP Tokens on CREAM, receive 59 TUSD
→ Deposit 59 TUSD into TrueFi, receive 58 TrueFi LP tokens
→ Deposit 58 TrueFi LP tokens on Cream, receive 35 TUSD
Etc., etc.
A possibly better example is:
→ Users get TFI-LP tokens (which, as a reminder are interest-bearing)
→ Deposit in CREAM
→ Borrow stablecoin/Defi coins and go farm “riskier” XXX% yield elsewhere
That way, their stablecoin farming % + TFI-LP % will likely be greater than the borrowing rate.
Getting TFI-LP listed on CREAM is step one, how it becomes used will depend on market conditions and rates on CREAM + whatever farming opportunities there are
Specification
While TrueFi is, first and foremost, an uncollateralized lending protocol, the TrueFi LP token also acts as an interest-earning dollar-pegged coin. It’s certainly not a stablecoin in the way TUSD is, but it does track to roughly $1(+interest earned).
The total # of pool tokens in circulation is 29,591,442. You can view this one app dot truefi dot io / pool
