In the wave of decentralized finance (DeFi), TrueFi is at the forefront of innovation. As the first and largest credit protocol in the DeFi field, TrueFi not only reshapes the infrastructure for lending and credit, but also constantly explores new possibilities. Recently, TrueFi announced a major development - the introduction of the Trinity protocol on the Base blockchain. This new protocol aims to simplify the process for users to obtain leverage and hedge risk through the TRI token, a USD-based digital currency backed by collateral assets. The beta version of the Trinity protocol has been launched on the Optimism Sepolia testnet and is planned to be made available to selected user groups after completing a rigorous review. This strategic move is expected to bring the minting cap of TRI tokens to $40 million, marking a new step for TrueFi in the field of on-chain asset trading. The launch of the Trinity protocol not only demonstrates TrueFi’s commitment to DeFi innovation, but also provides users with more financial tools and opportunities. Next, we will delve into the specifics of the Trinity protocol, including how it utilizes the tokenized short-term U.S. Treasury bill product tfBILL as a collateral asset, and how users can obtain leverage, hedge risks, and achieve efficient capital utilization through this new protocol . Use innovative financial tools and flexible income strategies to create a new paradigm of RWA assets. In the world of decentralized finance (DeFi), TrueFi has been committed to promoting innovation and improving the capital efficiency of on-chain assets. Most recently, TrueFi introduced the Trinity Protocol, a protocol designed to simplify the process for users to gain leverage and hedge risk through the TRI token, a U.S. dollar-based digital currency backed by collateral assets. This innovation not only marks TrueFi’s revitalization of real-world asset (RWA) trading, but also heralds a major breakthrough in the field of on-chain asset trading. The core of the Trinity protocol lies in its use of interest-bearing tfBILL—a tokenized short-term U.S. Treasury bill product that is the first collateral asset to back the TRI token. In addition to tfBILL, users can also leverage other assets in the TrueFi pool, RWA from different protocols, and crypto-native assets as collateral. This diverse selection of mortgage assets not only increases users' flexibility, but also greatly improves capital utilization efficiency. By using tfBill or other assets to mint TRI on Trinity, users can exchange it for stablecoins on the automated market maker, and then borrow TRI with a loan-to-value ratio of up to 92% through smart contracts, achieving a net profit of up to 15-20%. income. In addition, users can also choose to exchange stable coins for TRI and deposit them into the sTRI vault to earn returns that are similar to or even higher than the interest rate on Treasury bills. Secondary market trading of TRI tokens further increases user operational flexibility and earning potential. Although the market size of on-chain RWA is currently only one-third of its peak, TrueFi has demonstrated its firm confidence in market recovery through the launch of the Trinity protocol. The Trinity protocol has been launched on the Optimism Sepolia testnet and is expected to be open to selected users after completion of the review, with a minting cap of $40 million. In addition, TrueFi also plans to launch Trinity on Coinbase’s Layer 2 Base network. Although the initial deployment will not be available to US users, this strategic deployment heralds TrueFi’s further expansion and increased influence in the global DeFi ecosystem. Since launching its first protocol in 2020, TrueFi has issued $1 billion in loans, and its continued innovation and expansion are shaping the future of the DeFi space. With the launch and implementation of the Trinity protocol, TrueFi not only provides users with new financial tools and opportunities, but also injects new vitality and potential into the entire DeFi ecosystem. A comprehensive introduction to TrueFi’s product system and development history: putting debt on the chain, it has been iterated to the V5 version. TrueFi, carefully built by the Archblock team (formerly TrustToken), marks a major leap in the field of DeFi unsecured lending. As the core architecture of the digital asset credit market, TrueFi utilizes smart contracts managed by TRU tokens to achieve seamless connections between lenders, borrowers and portfolio managers. Different from traditional protocols that require collateral, such as Aave, Compound and Venus, TrueFi provides lenders with a mortgage-free and highly predictable loan interest rate environment. Its grand vision is to build a market-driven, fully automated credit rating and lending system that breaks traditional minimum/maximum APY limits and high TRU participation thresholds, while increasing user responsibility in approving new borrowers and loan types. TrueFi aims to make credit more accessible, transparent and programmable by introducing debt infrastructure onto the chain. Its core advantages are as follows: 1. Maximized transparency: TrueFi allows real-time tracking of every dollar loaned to borrowers; 2. Diversified Opportunities: TrueFi serves borrowers and portfolio managers (PMs) across multiple verticals, including “real world” use cases and crypto-focused institutions; 3. User First: TRU Holder Management Protocol , approve new PMs and borrowers, and manage key financial and cooperation decisions; 4. TRU governance token: TRU is used to govern the protocol and is used to approve new managers and borrowers; 5. Market access: TrueFi’s The token is listed on multiple marketplaces, including Coinbase, Binance, Sushiswap, and more. The development history of the TrueFi project is: 1. Initial stage: In February 2018, TrueFi raised approximately US$28 million in funds through CoinList’s Pre-Sale session; 2. Launch of the V1 version: November 2020, first release , at that time, only credit loans based on TUSD were supported; 3. Upgrade of the V2 version: Between November 2020 and February 2021, the "liquid exit" function was introduced, the staking model was optimized, and governance was fully put on the chain; 4. Development of the V3 version: From March to May 2021, a new USDC pool was added, the credit model was improved, and loan tokens were allowed to be traded; 5. Extension of the V4 version: From June to August 2021, any ERC is supported -20 token, allowing other lending protocols to provide liquidity, launching the USDT pool, and establishing SAFU; 6. V5 version to date: deployed on Layer 2 since September 2021, supporting "protocol-to-protocol" lending, Cooperated with Woo Network to launch non-stable currency lending products and improved the stable currency lending pool. TrueFi is designed to serve both depositors and borrowers. Any user holding USDC/USDT/TUSD/BUSD can deposit stablecoins, choose a lending pool to invest, and earn profits. TrueFi has two main lines of business - TrueFi DAO Pools and TrueFi Capital Markets. The former focuses on stablecoin credit loans, with TrueFi stakers and TrueFi rating committee jointly responsible for risk management; the latter includes stablecoin and non-stablecoin credit loans, with external managers responsible for specific business risk control. The development process of RWA assets is still in its early stages, and there may be many uncertainties in the future. In the vast world of exploring decentralized finance (DeFi), the field of unsecured lending is undoubtedly one of the most attractive frontiers. Through this article’s in-depth analysis of the practices and challenges of leading projects such as TrueFi, we can get a glimpse of the huge potential and practical difficulties faced by this field. Although the market demand for unsecured loans is huge, how to effectively solve the problem of "old borrowers" and ensure the safety of loans is still a difficult problem to be solved. TrueFi attempts to build a more secure and transparent lending environment by introducing a KYC process and using information provided by borrowers (such as bank transaction records, third-party credit rating data or potential DID digital identities) to screen and evaluate borrowers. In addition, establishing a cooperative relationship through smart contracts and possible legal agreements provides certain guarantees for the recovery of defaulted debts. However, faced with the difficulty of realizing recourse in a decentralized world, the over-collateralized lending model still seems to be a "safe island" in the DeFi field. Despite this, projects such as TrueFi reduce default risks by starting from institutional borrowers, providing DeFi lenders with relatively stable income protection, demonstrating the feasibility and potential of the unsecured lending model. This gradual expansion from institutions to a wide range of users, although full of challenges, also brings new development opportunities to the DeFi field. Although the exploration of the field of unsecured lending is full of hardships, it is these unremitting attempts and efforts that depict a sea of ​​stars for the future of DeFi. As DeFi Prime’s inventory of projects in the field at the beginning of the year shows, although some projects disappear, the road of exploration never stops. For TrueFi and other pioneers, every attempt and every breakthrough is a step towards a new world of DeFi. In the future, what awaits will be a more open, secure, and possible DeFi world.

#DeFi #RWA