Proposal: add TrueFi (tfTUSD & tfUSDC) as collateral assets

Summary

Hey C.R.E.A.M community!

This is a proposal to request the addition of Trufi’s tfTokens as a collateral asset on C.R.E.A.M Ethereum, starting with a collateral factor of 0%

The tfToken represents the value of funds a user deposits into TrueFi lending pools. In the simplest terms, tfTokens are tokenized deposit receipts that naturally grow in value as the lending pools generate yield.

For

Against

Background

TrueFi provides uncollateralized lending to creditworthy borrowers including Almeda Research, Invictus Capital, and more. With $105.5M in loans originated, TrueFi’s community base has been steadily growing with a mix of new users in defi and OG’s from the TrustToken base community.

Additional Detail

Within the TrueFi ecosystem, there are two tfTokens to date:

  1. tfUSDC Token (0xA991356d261fbaF194463aF6DF8f0464F8f1c742)

Dune analytics

Price: $1.00

TVL: $89M

Total lenders: 78

Note: The USDC pool launched on 05/20/21

  1. tfTUSD Token (0xa1e72267084192Db7387c8CC1328fadE470e4149)

Price: $1.067

Current supply/max supply: 92,641,223

Token holders: 147

Token Mechanics

Today when a user deposits TUSD or USDC into the pool, they receive tfTokens. For example, If you were to deposit 100 TUSD you would receive ~93.72 tfTUSD tokens (100/1.067).

The pool tokens represent a claim on:

  1. TUSD or USDC
  2. yCRV (where idle TUSD or USDC is put to work to generate interest)
  3. CRV (farming)
  4. 90% of interest generated from each matured loan (as 10% goes to stakers)

At the moment, there is little utility for tfTokens so many users will swap for TUSD on Uniswap if they have a need for collateral.

Motivation:

A listing on C.R.E.A.M. would allow users to take advantage of a natural interest bearing tfToken, but still access the borrowing potential of these assets as collateral on C.R.E.A.M. This would naturally incentive deposits into C.R.E.A.M. as total yield economics would be much higher compared to the base asset.

As of now the tokens are not listed as a collateral asset on any other lending platforms. This would provide a great opportunity to introduce new users to the C.R.E.A.M community.

In short this would increase tfToken utility while increasing C.R.E.A.M. TVL and drive borrower demand.

Community:

Twitter: 25.2K

Telegram: 1,000

Discord:3,565

Available Audits

TrueFi 2021 Audits

Links:

Website | Twitter | Discord

5 Likes

This is a very strong project and team. I fully support this proposal!

2 Likes

This is a very strong project and team. I fully support this proposal!
Add $tfTokens (tfTUSD & tfUSDC)

3 Likes

This makes a lot of sense. Thank you for this proposal which I fully support!

1 Like

Hey, Ryan from our core team here. Very happy to answer any questions you might have about tfTokens. In practice, they work similarly to something like cTokens where they start at 1.00 and as they accrue interest, the value increases. In the case of tfTUSD, it’s been live for just over 6 months and the fact that it’s priced at $1.067 means that it’s earned an annualized (unboosted) interest rate of roughly 13%.

Right now, most people who deposit into our lending pools take their tfTokens and stake them in our farms to earn $TRU, but we’d love to give our users other ways to use their tokens and having them as a form of collateral on CREAM would be our #1 choice to suggest to our community.

Again, please let us know if you have questions!

1 Like

TrueFi user here; I’d love to see this happen.

1 Like