This week one of the contenders for the top dog position among the DeFi protocols for uncollateralized lending suffered a heavy blow from a loan default. Other protocols in the space are faring a lot better. TrueFi, the founders of this promising subset of DeFi, is weathering the storm and has more than $1.2B in loans repaid still without default.
Coming from such a position of strength they are now taking the opportunity of crypto winter to deeper entrench themselves in the DeFi Ecosystem.
TrustToken, the core team responsible for building the leading unsecured lending protocol TrueFi collaborates with WOO X, a zero-fee digital asset trading platform incubated by Kronos Research to support its institutional services by issuing loans to its clients through the protocol.
WOO X will rely on TrueFi for uncollateralized loans to its institutional clients in its native WOO token, making it TrueFi’s first non-stablecoin portfolio.
Rafael Cosman, CEO of TrustToken, said:
“Uncollateralized on-chain lending is the most capital-efficient credit a financial institution can get. Our first non-stablecoin portfolios are further testimony for how versatile TrueFi lending can be, supporting any digital assets at all—Bitcoin, Ether, and other top coins are also very much a possibility. We are excited to be reimagining loans for the 21st century as we work to push TrueFi’s total originated loans to $10 billion.”
While lending has emerged as one of the most lucrative DeFi applications for both retail and institutional clients, decentralized lending protocols still largely rely on over-collateralization to avoid risks, which makes the service capital-inefficient.
TrueFi comes in to fix that, making DeFi actually institutional grade, having already reached $1.6B in loans originated.
Ran Yi, Chief of Ecosystem at WOO Network, said:
“The institutional interest for crypto is soaring, and readily-available capital is one of the key conditions for big players to delve deeper into the space, especially in the current climate. We are thrilled to be partnering with TrueFi to grant institutions fast and efficient credit through DeFi’s first uncollateralized lending protocol. By giving traders more flexibility, we enable more usage of the network, which ultimately benefits the entire ecosystem.”
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