TrueFi is Live on Optimism

Published on: 02.07.2022

TrueFi is Live on Optimism, bringing real-world, unsecured financial opportunities to L2 for the first time.

TrueFi was born on, and hit its first $1b in originations, on Ethereum. As the protocol built traction, they saw three things:

L2 solutions were also growing robust DeFi communities, with faster speeds and lower fees than Ethereum
These L2s were home to a growing demand for capital from borrowers
TrueFi’s transaction costs on Ethereum were preventing lenders with holdings below a certain size from participating in lending

After considering many Layer 1 and Layer 2 solutions,TrueFi is Live on Optimism to share TrueFi’s official launch on Optimism, bringing the unsecured lending ecosystem to new users.

The launch on Optimism offers the TrueFi community a faster, cheaper user experience, making for even more capital-effective lending and borrowing, and opens access to a broader lender base — all directly on top of the Ethereum ecosystem.

A Brief History of TrueFi

TrueFi originated DeFi’s first ever collateral-free loan in November 2020 — and over the next 18 months, the protocol has grown and evolved tremendously. TrueFi is Live on Optimism, Now at over $1.65 billion in originations and still enjoying a perfect repayment rate, TrueFi’s greatest transformation was the launch of on-chain capital markets (formerly called the lending marketplace).

From serving crypto-native borrowers through permissionless pools at our start, to now supporting a growing number of partnered and independent portfolio managers allocating DeFi capital to real world opportunities, TrueFi is quickly becoming the public infrastructure of global lending.

The benefits of TrueFi versus other lending and borrowing avenues are becoming clear.

For lenders, TrueFi is a home to a growing list of crypto-native and real-world lending opportunities with some of the most competitive risk-adjusted returns in DeFi.
For borrowers, TrueFi offers rapid access to market-priced capital at competitive terms.
For portfolio managers, TrueFi offers the best of both traditional and DeFi markets: deep portfolio controls and hands-on help making the on-chain transition, with the speed, cost reductions, global liquidity, and transparency of blockchain.

Over time, TrueFi aims to bring even more of the +$8 trillion traditional credit market on-chain, starting with the most inefficient, complex, and esoteric opportunities, and expanding out to support ever more of the traditional unsecured lending business.

The Optimism L2: What Is It & Why Use It?

Optimism is a Layer 2 scaling solution for Ethereum, supporting all dApps in the existing Ethereum ecosystem. This leading L2 uses a technique known as optimistic rollups, whereby multiple transactions are “rolled up” into one and settled on another blockchain, with records fed back to the main Ethereum chain. This dramatically reduces the costs of most interactions with dApps like TrueFi, opening the door to a broader, more global user base.

Optimistic Rollups

Optimistic rollups increase Ethereum’s transactions per second and drastically decrease fees. On average, Optimism fees are 96x less than on Ethereum. As of March 2022, Optimism secured about $740 million of on-chain value.

Optimism’s innovation in terms of scalability, speed, and capital efficiency will provide the perfect environment needed for TrueFi to flourish. They are proud to introduce the unique opportunities of on-chain credit to lender and borrowers transacting on Optimism.

Benefits to TrueFi Lenders

By launching on Optimism, all present and future TrueFi lenders are able to enjoy TrueFi’s lucrative crypto-native and real-world lending yields, with lower transaction fees than ever. With a focus on user accessibility, optimistic rollups promise TrueFi lenders quicker, cheaper.

Benefits to TrueFi Borrowers

The Optimism version of the protocol will feature its own lending portfolios distinct from those on mainnet TrueFi. It’s giving prospective TrueFi borrowers access to a whole new pool of uncollateralized capital, and lower than ever fees.

The existing single-borrower portfolios on TrueFi will have the option of migrating to Optimism upon their maturity date. As well as opening new dedicated lending portfolios on the Layer 2 chain. The first portfolio to launch on Optimism is expected to arrive in July 2022.

Broad Benefits to TrueFi

The launch aims to amplify the overall user activity on TrueFi. It brings the protocol into Optimism’s bustling economy.

The move allows TrueFi users to port TRU straight to Optimism. It’s without having to deposit on ETH mainnet and uses a bridge to migrate onto Layer 2.