TrueFi: Kicking Off Year 2
Annual Letter from TrustToken CEO Rafael Cosman
Approximately one year ago, on Saturday Nov 21, 2020, the TrustToken team gathered in the Zoom war-room to launch TrueFi, DeFi’s first protocol for uncollateralized lending. Tension was high. We couldn’t afford a single mistake.
Since then, TrueFi has:
- Surpassed $1Bn in TVL
- Originated $1Bn in loans
- Generated $8.5mm in interest for lenders
- Generated $970k in fees for TRU governance participants
Having a live protocol helped us learn quickly, and we focused year one on improving both the product and its lending book. In year 1, TrueFi’s lending book focused primarily on crypto hedge funds and trading firms.
This work helped TrueFi to become one of the largest DeFi protocols globally, and THE world’s largest protocol for unsecured lending.
That’s excellent news. But $1Bn TVL is just 0.1% of the $1Tn we are now aiming for — because we have always known that something more is required to get TrueFi to its next level of success.
Specifically- TrueFi cannot become the protocol for global lending if it only targets its existing market of crypto-native lenders and borrowers. While maintaining and growing our existing lending strategy remains a key goal, TrueFi must start lending in TradFi markets such as venture debt, corporate debt, CDOs & CLOs, and many more. In 2022, it will.
Year 2 of TrueFi is focused on opening the protocol to independent asset managers. These partners will help take TrueFi from $1Bn to $1Tn. We have been laying the groundwork for this transition for many months and will be sharing more details of our plans soon.
Expect year 2 to be exciting, but to include inevitable growing pains. We do not get from $1Bn to $1Tn by following a beaten path.
We’re tremendously excited about where TrueFi is and where it’s going. I personally am glad to have the opportunity in my lifetime to build something truly innovative and impactful. And I’m glad to have you with us.
Onwards,
Rafael Cosman
CEO and Cofounder, TrustToken
