Credit Delegation is a feature of Aave which allows a Credit Delegator to delegate the credit of their account’s position to a Borrower. This newly implemented feature presents an interesting opportunity for TrueFi to be the Borrower in which users of Aave delegate the credit of their account’s position to.
A natural synergy between TrueFi and Aave becomes clear. TrueFi currently lacks the liquidity to fulfill many borrow requests at once while Aave users lack the ability to vet borrowers securely and mitigate the risk of default. By utilizing the sea of liquidity on Aaave, TrueFi can focus on delegating capital efficiently and providing a legal framework for enforcing action against delinquent loans.
I believe credit delegation will be an increasingly important sector of DeFi going forward and by failing to integrate with Aave, TrueFi risks losing market share to future competitors that utilize the Aave credit delegation feature to have access to potentially hundreds of millions of dollars of liquidity.
These are just my preliminary thoughts, would love to discuss!