SINGAPORE, July 12 Feb. 1, 2022 (GLOBE NEWSWIRE) — As a leading cryptocurrency exchange, BitYard hosted an AMA with the TrueFi team, DeFi’s premier credit marketplace, and invited Community Leader Matt Kielczewski to share his perspective on how credit will change the future of blockchain credit.
In the traditional mode of financial lending, borrowers need collateral to get a loan. TrueFi provides unsecured loans through a credit scoring mechanism. Even when the borrower does not have collateral, this can punish loan default behavior; at the same time, introduce high-quality lenders at high interest rates and provide lenders with stable and large loans.
By staking TRU on TrueFi, token holders earn substantial rewards in the form of token incentives and loan origination fees, in exchange for securing the protocol’s lenders in the event of default. “Staking APYs are now +12% – and that’s before rig fees,” says TrueFi Community Manager Matt.
For the borrower’s proposed loan application, the TRU pledger will vote to decide whether or not to lend the loan. Such a vote would expose TRU stakers to the possibility of incurring losses or gaining gains, so TRU stakers would have an incentive to vote prudently.
“We saw TrueFi as an opportunity to help put money where it can grow best, with the least friction. This early era of TrueFi was important to today’s design, which enables independent portfolio managers to move their financial opportunities on-chain, opening up opportunities for retail investors to support B2B fintech lending, emerging market investing, and even crypto mortgages.Today, TrueFi acts as a marketplace for lending, connecting portfolio managers offering financial opportunities for borrowers looking for capital and lenders looking for returns.You can think of it almost like an app store, but offering lending opportunities rather than apps,” says Matt.
TrueFi focuses on businesses, as they are a lender to institutional borrowers first. But, they now make it even easier for the retail lender to get involved in their protocol! The first step in this direction was the launch of the Perpetual Optimism Protocol Wallet. The launch of this wallet allows retail users to jump into our lending protocol by collateralizing their USDC with lower gas fees and faster transactions using the Optimism L2 Ethereum scaling solution.
TrueFi launched in November 2020, making TrueFi DeFi’s first credit-based lending protocol. TrueFi enables portfolio managers to launch on-chain collateral-free loan opportunities to a global base of lenders and borrowers. Lenders enjoy lucrative and sustainable returns through a variety of on- and off-chain financial opportunities, and borrowers can quickly access capital at competitive prices with no collateral requirements.
BitYard is a one-stop cryptocurrency trading platform with the most professional services. Bityard provides users with a trading solution through Spot, Contracts for Differences (CFD), Reverse Perpetual Contracts, USDT Perpetual Contracts, Grid trading and Copy-trading.
Media contact：Jeanne Hsieh
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