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Truefi, an uncollateralized lending platform, raises $12.5 million from A16z and Alameda

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Truefi, an uncollateralized loan platform, has raised $12.5 million from three important investors. Blocktower, an investment firm that specializes in cryptocurrency and is based in New York, led the token sale. Other important investors were Alameda Research — owned by Sam Bankman-Fried, founder of FTX — and A16z. Truefi is one of the few uncollateralized defi-based lending protocols in the industry.

Truefi Raises $12.5 Million

Truefi has raised $12.5 million dollars to expand its operations and its offer of lending products. It was funded by the purchase of its native token truefi, which will be released in stages. The token sale was led by New York-based Blocktower, a cryptocurrency blockchain VC firm, with the participation of Alameda and A16z, some of the biggest investment firms in the crypto space.

The protocol was developed through experimentation using a system that mimics traditional finance conditions for defi. Traditional finance does not work like this. Most defi loans require collateral in order to be issued. To issue loans, banks use a credit score. This score is calculated based on the volume and activity of the customer.

Truefi aims to replicate this behavior by allowing users to borrow uncollateralized loans based on certain variables. These variables will determine each user’s credit score in the blockchain. This has already resulted in more than $200 million in loan originations for Trusttoken, the company behind the protocol, which is also the issuer of trueusd, a popular stablecoin.

Expanding Its Reach

The fundraiser allows Truefi the opportunity to expand its reach to new markets and offer new products. Trusttoken CEO Rafael Cosman stated:

This fundraise will enable Truefi’s growth through solid hiring and strategic investments. It will also allow Truefi’s to expand its workforce, which will allow it to offer better capital access to borrowers and lenders.

Alameda Research were among the first to adopt the protocol. They are now helping to spread it to other institutions. San Bankman-Fried is the CEO of the VC investment company.

Alameda feels proud to be an investor in the team and the technology behind it. Truefi’s unsecured loans are growing beyond crypto and we intend to be users and partners at every stage.

What do you think of Truefi’s latest token sale? Please leave your comments below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or in connection to the content, goods, or services discussed in this article.

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Terra Collapse continues to plague Defi –Chain Bridges down 20% This Month

Terra Collapse Continues to Plague Defi — Value Locked in Cross-Chain Bridges Down 20% This Month

Following the aftermath of the Terra blockchain fiasco, decentralized finance (defi) continues to feel the impact of the project’s fallout. The total value locked in defi (TVL), has fallen 2. 61% in value, and cross-chain bridges have lost roughly 20.3% during the last 30 days.

Value Locked in Cross Chain Bridge Tech Slips 20% Lower Than Last Month

Over $100 billion in USD value was recently removed from the total value locked (TVL) in defi and TVL statistics continue to slide. Four days ago, the TVL in defi was approximately $112. 29 billion and today, the TVL is down 2. 61% to $109. 35 billion. The TVL in defi across twelve blockchains has fallen a lot over the past month. Cross-chain bridge TVLs also have fallen a lot.

30-day metrics from Dune Analytics indicates that the TVL across cross-chain bridges is down 20.3%. Today, there’s $16. 49 billion total value locked across 16 different cross-chain bridges. The number of unique daily ethereum bridge depositors has dropped in addition to the cross chain bridge TVL.

As of Thursday, May 19, 2022, Polygon has the largest TVL among the 16 cross-chain bridges monitored on Dune Analytics. Polygon currently has $5. 15 billion today. The $5. 15 billion on Polygon bridges represents 31. 23% of the entire $16. 49 billion cross-chain bridge TVL.

Polygon is followed by Avalanche ($3. 55B), Arbitrum ($3.2B), Fantom’s Anyswap ($1. 87B), Near Rainbow ($1. 86B), Optimism ($585M), Harmony ($229M), Moonriver ($154M), and Xdai ($122M).

The top crypto asset leveraged on cross-chain bridges today is the stablecoin usd coin (USDC). The stablecoin has $5.1 billion locked and is followed by WETH or ETH with $4. 57 billion locked. Tether (USDT) is the third-largest with $1.9 billion today and other notable cryptos leveraged on cross-chain bridges include WBTC, DAI, and MATIC.

The losses in defi are caused by two factors. One, the Terra blockchain fallout removed more than $40 billion from the defi ecosystem in a very short period of time. The remaining billions have left defi in various ways including using cross-chain bridges because defi users have been rattled by the Terra catastrophe.

Billionaire investor and crypto proponent Mike Novogratz published a blog post yesterday covering the recent Terra blockchain fiasco and he said “the collapse dented confidence in crypto and defi.”

What do you think about the dent in confidence to the defi ecosystem and the value locked in cross-chain bridge tech dropping lower than last month? Please comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman, a journalist and financial tech expert living in Florida, is the News Lead at Bitcoin.com News. Redman has been an active member of the cryptocurrency community since 2011. Redman is passionate about Bitcoin, open-source codes, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or in connection to the content, goods, or services discussed in this article.

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Lido Creates an Additional Curve Pool To Improve Liquidity Around Bonded Ethereum Peg

On Friday, the value locked in decentralized finance (defi) protocols dropped to a low of $110. 35 billion after there was more than $200 billion total value locked (TVL) eight days ago on May 5. One specific defi protocol called Lido, a liquid staking platform and the second largest defi application in terms of TVL size today, has lost significant value losing 49. 66% during the past week.

Curve’s stETH: ETH Peg Skews, Lido Adds New Pool With Liquidity Incentives

While being exposed to the Terra blockchain blunder, Lido’s bonded ethereum tokens have been under pressure due to an imbalance on Curve’s bonded ethereum (stETH) and ethereum pool. The liquid staking defi protocol Lido announced that it was deploying liquidity incentives to Curve Finance in order to improve the imbalance that has been taking place around the stETH: ETH peg.

“We are deploying an additional Curve Finance pool to improve the liquidity around the stETH: ETH peg,” Lido tweeted on May 12, 2022. “This new pool will feature an additional 1M LDO in incentives for the next week and is currently almost empty, suggesting high rewards to initial depositors.” Before the announcement, Curve’s stETH: ETH pool was showing a 2% discount amid the chaos surrounding the Terra blockchain.

Crypto journalist Colin ‘Wu’ Blockchain explained what was taking place on Thursday. “The ETH/stETH asset ratio in Curve’s largest TVL steth (ETH+stETH) pool is skewed,” the journalist tweeted. “ETH/stETH=36.48%/63. 52%, people are exchanging stETH back to ETH. Users who are using stETH for leveraged staking need to be aware of potential de-pegging risks.”

Team Plans to Migrate Curve and Balancer Pools, Lido’s TVL Shed $10. 26 Billion in a Week’s Time

In the same Twitter thread, Lido described the firm’s plan to mitigate the issue on Curve’s platform. “[The plan is to] migrate liquidity from the existing Curve and Balancer pools to a new one (recommended deposit ratio at current rate is 13 stETH for every 1 wETH) to maximise rewards,” Lido added on Thursday. “The new pool contains 1,000,000 LDO for the next week in rewards.”

Some people questioned the move to create a new pool on the largest defi protocol in terms of value locked. “Is it a good idea?” UST was attacked during liquidity migration,” one individual asked.

The liquid staking application Lido also had significant exposure to the Terra blockchain and 49. 66% in value has left the platform since last week according to defillama.com stats. Lido currently has $9. 13 billion in value but on May 5, it held $19. 39 billion. $10. 26 billion has been removed from Lido’s TVL since May 5 and $4,130 in LUNA remains.

What do you think about Lido adding liquidity incentives to Curve’s pool? Please comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman, the News Lead at Bitcoin.com News, is a Florida-based financial journalist. Redman has been an active member of the cryptocurrency community since 2011. Redman is passionate about Bitcoin, open-source codes, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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Terra Fiasco Unlocks Value in Defi –

Terra Fiasco Stirs Value Locked in Defi — Lido, Anchor Plummet to Lower Positions

Decentralized finance (defi) protocols are having a hard time weathering the storm, as the total value locked in defi today is down 39. 26% since April 3, from $230. 18 billion to the current $139. 81 billion. The sudden value drop stemming from Terra’s native assets, LUNA and UST, has pushed Lido down to the third-largest TVL position in defi, losing 19. 42% in 24 hours. Anchor Protocol has slipped down to the 12th largest TVL position, losing 66. 34% in the 24-hour timeframe.

Value Locked in Defi Sheds 10% During the Last 24 Hours — Terra Defi Apps Rock the Boat

  • According to defillama.com stats, the value locked in decentralized finance protocols has dropped 10. 58% in value during the past 24 hours, and 39. 26% over the past 38 days since April 3, 2022. The TVL sizes of all ten top defi protocols have fallen between 1. 61% and 19. 42% in the last day.
  • The defi protocol Lido dropped from the second-largest position to the third-largest on Wednesday after losing close to 20% in value. Lido supports a variety of blockchains. One of these is Terra network, which pays rewards in UST and allows LUNA bonding.
Terra Fiasco Stirs Value Locked in Defi — Lido, Anchor Plummet to Lower Positions
Total value locked in defi on May 11, 2022.
  • While the defi lending protocol Anchor was once the third-largest defi project just three days back, it is now holding the 12th position as it lost 66. 34% during the last 24 hours. Seven-day stats show Anchor’s TVL lost 85. 92% in value.
  • One of the only defi protocols that has seen its TVL rise over the last week is Tron’s Sunswap as it’s up 10. 69% during the past seven days. Dydx saw its TVL increase by 0. 80% this week and Arrakis Finance jumped 4. 48% higher this week.
  • Curve Finance, a stablecoin-centric automated marketplace maker and decentralized exchange (dex), still held the lead on Wednesday with 9. 94% of the entire $139. 81 billion. However, Curve is down 11. 51% during the last 24 hours, 27% down for the week, adn 31. 85% during the last month.
  • The TVL in cross-chain bridges has also dropped 20.3% this month and there’s currently a TVL of around $16. 49 billion spread across cross-chain bridge protocols. Today, Avalanche and Polygon are the most powerful cross-chain bridge TVLs.
  • Terra used to be the second largest defi space in Ethereum’s TVL. However, it is now the sixth. $3. 71 billion remains in Terra-based defi protocols, while the leader Ethereum has $86.51billion.

What do you think about the decentralized finance market action during the last few days and how Terra’s ecosystem is affecting the value locked? Please comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman, a journalist and financial tech expert living in Florida, is the News Lead at Bitcoin.com News. Redman has been an active member of the cryptocurrency community since 2011. Redman is passionate about Bitcoin, open-source codes, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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