TrueFi is excited to announce its successful deployment on Arbitrum, the leading Ethereum Layer 2 scaling solution. The launch will focus on Lines of Credit to provide capital-efficient credit-managed lending to market-neutral strategies. Cicada Partners will serve as a Credit Risk Manager to the DAO, responsible for underwriting, structuring and pricing the lending transactions.
The TrueFi and Cicada Partnership aims to bring a sophisticated, risk-managed credit origination platform to Arbitrum. Supported by a risk management team with a strong track record and credit origination expertise, this offering will provide uncorrelated, liquid and stable real yield opportunities for participants in Arbitrum’s leading DeFi ecosystem.
To support TrueFi’s commitment, the Arbitrum Foundation will provide a grant to facilitate the launch and future growth. The grant, distributed in ARB tokens, will be allocated to pool lenders in its entirety to bootstrap and scale the new lending pools. The lenders will receive this incentive in addition to the interest paid by the borrowers. More details on the incentive program and the first pool launch will be announced shortly.
Our first two pools will be going live with Alphanonce and Gravity, two leading market makers with more pools to follow.
Quote from Offchain Labs:
“We are excited to see TrueFi and Cicada Partners’ deployment on Arbitrum. Their combined expertise in onchain lending and credit risk management will provide Arbitrum users with access to stable, risk-managed yields, representing a significant milestone in the growth of our DeFi ecosystem.”
- Luke Xiao, Senior Partnerships Manager, Offchain Labs
Quote from TrueFi
“Market-neutral trading firms have historically been the largest borrowers in onchain credit. While the events of 2022 disrupted this sector’s growth, TrueFi is confident that partnering with Cicada will help us regain our leadership position. Launching Lines of Credit on Arbitrum is the first step in what we expect to be a long and fruitful partnership with both Cicada and Arbitrum.”
- Ryan Rodenbaugh, CEO and Co-Founder, Wallfacer Labs
Quote from Cicada
“Lending to crypto trading firms with demonstrated track records across all market environments is an attractive alpha opportunity stemming from a misunderstanding of the principles of credit risk and what other lenders got wrong in the bull market of ‘21/’22. Consequently, we’re excited to support TrueFi in managing credit risk on behalf of LPs and fill a clear gap in the market.”
- Sefton Kincaid, CEO and Co-Founder, Cicada Partners
About TrueFi
Since 2020, TrueFi has originated >$1.7bn across 150+ loans with a default rate <1% (source: rwa.xyz). TrueFi’s Line of Credit product helps borrowers and lenders connect in a permissionless, composable manner, driving broader borrower adoption. TrueFi’s short- and medium-term roadmap also includes expanding its existing credit market primitives with (1) index vaults, which will allow yield aggregation across any EVM compatible yield products, (2) Trinity, which aims to facilitate capital efficiency for on-chain RWA.
About Cicada Partners
Cicada is an on-chain credit risk management company that facilitates the growth of institutional lending on public blockchains by managing credit risk for non-custodial lenders. The team has extensive crypto-native lending expertise, having underwritten >$850m in loans on Maple and Atlendis since ’21 to an industry-leading 1.2% default rate.
About The Arbitrum Foundation
The Arbitrum Foundation, founded in March 2023, supports and grows the Arbitrum network and its community with secure scaling solutions for Ethereum. Arbitrum One — a leading Ethereum Layer-2 scaling solution initially developed by Offchain Labs — offers ultra-fast, low-cost transactions with security derived from Ethereum through Optimistic Rollup technology. Launched in August 2021, the Arbitrum One mainnet beta is EVM-compatible to the bytecode level and has 54%+ TVL in the L2 segment. 2000+ DeFi and NFT projects are live in the ecosystem to date. In August 2022, Arbitrum One upgraded to Nitro tech stack, enabling fraud proofs over the core engine of Geth compiled to WASM.
Contact
Arbitrum Contact Information: arbitrumpr@mgroupsc.com
Wallfacer Labs Contact Information: gm@wallfacer.io or https://t.me/ryanrodenbaugh
Cicada Partners Contact Information: team@cicada.partners
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