TrueFi is a DeFi protocol focused on uncollateralized lending. To support the system, TrustToken introduced the TRU token (TRU), which is used for staking and governance.

TrustToken, the company behind TrueFi, was co-founded by its current CEO Rafael Cosman in 2017. The mission of TrustToken is to modernize the financial system-mainly by lowering transaction costs, making international transfers faster, and expanding worldwide access to financial services. To pursue this, it has launched multiple crypto tokens, including stablecoins tied to fiat currencies, such as True USD (TUSD), which is pegged to the US Dollar.

As part of broader efforts to upgrade how the system works, TrustToken has moved into uncollateralized lending through the launch of TrueFi. This aligns with the project’s objective to enable DeFi borrowing and lending using an approachable structure with fixed terms and no collateral requirement. TrueFi stands out for introducing what it describes as the first automated on-chain credit rating framework. The project aims to build on this approach and work toward becoming a leading market-driven automated credit-rating and lending system.

What are TRU key features and how does it work?

By pairing collateral-free borrowing and lending with blockchain-based infrastructure, TrustToken aims to improve capital velocity and efficiency for borrowers while helping lenders achieve stronger returns on their cryptocurrency. To accomplish this, the protocol organizes interactions across three groups: lenders, borrowers, and stakers.

Lenders supply funds by depositing stablecoins-for instance, TUSD-into TrueFi capital pools. Borrowers (such as OTC desks, exchanges, and other protocols) then request capital via smart contracts. These contracts include loan specifics such as duration, interest rate, total amount due, and the Ethereum address that will receive the funds if the proposal is approved. In this way, lenders gain full visibility into how their capital will be allocated. For additional yield, any pool capital that isn’t actively lent can be used as liquidity for other stable, high-yield DeFi platforms (for example, Curve.fi).

Even though uncollateralized loans can carry significant risk, TrueFi is designed to address it through multiple mechanisms. Loan proposals are evaluated through a Credit Prediction Market model, where TRU stakers-described as a decentralized group of participants-review the smart contract risks and vote on proposals, indicating the perceived creditworthiness of each loan. Since TRU stakers have exposure to the loans, they are encouraged to vote carefully. On top of this, borrowers are first whitelisted through a vetting and auditing process, and each loan must also satisfy protocol-defined requirements. Borrowers with approved loans are expected to repay principal and interest on or before the agreed end of the loan terms, while failure to repay may lead to legal action.

Lenders earn rewards in different ways based on what they stake. Lenders that deposit stablecoins (such as True USD (TUSD)) can withdraw their funds with interest. If a lender stakes Liquidity Provider tokens, they can receive bonus TRU tokens. TRU holders can also take part in the Credit Prediction Market system. Moreover, when a loan is repaid successfully, stakers who voted “yes” in the Credit Prediction Market receive additional TRU tokens for participating and correctly predicting repayment outcomes.

Beyond staking, TRU functions as a governance token, giving TRU holders a role in protocol governance decisions.

Where can you buy TrueFi?

TRU can be purchased on the CEXs and DEXs listed here. Common choices include Binance and Uniswap. TRU’s price changes depending on the exchange and current market demand. For more detailed pricing information, please consult the price charts above.