[IDEA] Proposal to deploy TrueFi on CRONOS

We all love TrueFi (otherwise why would you be here reading this). It is a great project, executed by a talented and experienced team.

I’ve been an active user and supporter since the protocol went live. I’ve provided liquidity to both the protocol and a lender (TUSD) and via the decentralised exchanges (Uniswap and Sushiswap) (TRU/ETH). I also stake a large % of my TRU in securing the protocol. So, I have first-hand experience of using the product (apart from borrowing).

The main problem non-Whale investors have is ETH gas fees. This is not an exclusive problem with TrueFi, but all Ethereum Dapps. This has allowed a small number of super large investors to provide almost all the liquidity and stake/farm the TRU. I personally believe this has limited the growth and decentralisation.

Over the last year we have seen many Dapps migrate or deploy versions of their code on Ethereum L2’s or other L1. I know during the last Town Hall call, looking at other chains was mentioned and was part of the future roadmap. Talking to the borrower on the call (Celsius), they would be comfortable interacting with other chains.

Personally speaking, I would have put a significant amount of my stablecoins into TrueFi this year if the gas barrier to entry was not there. The same for increasing my TRU staking. Talking to others from the Discord, and other non TrueFi friends, they love the sound of the project, and would be willing to put unused stablecoins into the protocol - but are unwilling to spend the gas interacting with the smart contract on Ethereum. I believe we are missing out on a lot of people like this!

I would therefore like to propose, and get feedback on, deploying TrueFi on Cronos - https://cronos.crypto.org/

I see this working in the same way the like of Aave – where they have deployed separate version of their Ethereum protocol on Polygon/Matic and Avalanche (and you can easily switch between chains on their website)

So why Cronos. Well, for starters, Cronos is built on Ethermint, which supports rapid porting of apps & smart contracts from Ethereum and other EVM-compatible chains. Now I am no developer, but I’d like to know how “rapid” and how much work would be involved in doing this. Secondly, the gas fees are super low, talking of less that $1 per transaction, which makes interacting with TrueFi on Cronos a no brainer. Thirdly, as the chain was developed by the team at Cryoto.com – there is a quick and cheap, Fiat on/off ramp for both lenders and borrowers.

Stablecoins (like USDT and USDC) can be moved from Cronos to Cryoto.com and into your bank for less than $1. The same for brining funds into TrueFi too… Finally, is their DeFi wallet - which is growing rapidly. They have just launched a Dapps tab to the app. This provides a very quick and simple way for users to interact with the protocols listed. I have personally moved stablecoins from Cryoto.com into my DeFi wallet on Cronos – then add these stablecoins into VVS Finance. As I was doing this, I thought, I wish I was putting these stablecoins into TrueFi!

I know the team already have a strong relationship with the people at Cryoto.com. Can we piggyback off their aggressive marketing spend, and explosion in user numbers – to help grow TrueFi in 2022?

I would like to hear everyone’s feedback below.

Thank you!

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I think we should deploy TrueFI pools to any layer 2 or blockchain that borrower want to use. I’ve never heard of Chronos but I think a poll of borrowers would help us understand which alternatives to ethereum are desired.

I understand some borrower want to use polygon or solana currently so perhaps it would make sense to use one of these alternative blockchains? Would love to hear more feedback.

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Thanks Hal for the reply. I really appreciate you reading the proposal. I’m a big fan on Polygon - so would not be disappointed to see TrueFi deploy on there! :slight_smile:

Regarding Cronos, it’s definitely worth a look. Mainnet went live on November 8th, and it already has $1.6B in DeFi TVL, rapid growth! - Cronos TVL - DefiLlama

But the main reason was to piggy back on the growth and aggressive marketing Cryoto.com are doing to gain new users and crypto awareness. Their DeFi wallet would be a great tool to make TrueFi accessible and quick/simple to a large user base. Also, with the low fee on/off ramp, moving funds in and out would be very simple for both borrowers and lenders. Please take a look/have a play :+1:t2:

Here is a video which sort of explains the opportunity I am seeing for us being on Cronos and being available to borrowers and lenders via the Cryoto.com DeFi wallet. When he refers to the benefits for VVS, replace that with benefits for TrueFi :wink: MASSIVE VVS Finance Update 🔥 Next 1,000X (Price Analysis & Prediction - Crypto.com CRO - 1inch ) - YouTube

I couldn’t agree with you more and fully endorse your proposal. Like you, I invested heavily in ETH DEFI projects and now feel "alienated " by the whole experience. The economics simply don’t exist for individuals to do that with Ethereum anymore. I have stuck with TrueFi and a couple of others because I believe in their potential. Everything else, and anything new, goes to Solana or AVAX. Pennies per transaction and much faster executions.

“There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.”

- Sam Walton

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I wholely agree with this. Even eth 2.0 will not solve their issues.

Porting to polygon, harmonyone, bsc would be my vote. Cronos I dont personally know enough about.

100% however we need to be on diff chain if we want more money in, otherwise, it be more money in and tons out in fees

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For those that are not familiar with CRONOS - please check this out (4 min read) https://crypto.com/research/article?category=macro&page=what-is-cronos

I read the article and checked out the website. If we could get funding to build our project on Cronos, I think that would be a 100% win. It looks like crypto.com is incentivizing projects to build on Cronos for up to $1M. I’d be interested to see if borrowers would want to borrow via Cronos and what kind of incentives we might be able to get for TRU/CRO on new AMMs there.

We are actively looking into cases for TrueFi on Polygon and Solana as well, so we will definitely keep this in mind.

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That’s great to hear Hal. Glad the links were useful. Yes, if the project could get some of the $1M fund - that would certainly be a nice sweetener!

Regarding borrowers using Cronos. I have previously mentioned the very quick/simple/cheep fiat on/off ramp via the Crypto.com App. Cronos is also linked up to the Crypto.com Exchange - which has both individual and institution/company versions. I also know they have a tie up with USDC for direct USDC to bank account transfers in/out - reference: Global USD Bank Transfers Are Now Available in 60+ Countries - should make it super simple for borrowers (and lenders!) to get funds in and out!

Regarding TRU/CRO incentives, check out VVS finance - https://vvs.finance/ - I am currently LP’ing thee - and their pairs are currently heavily incentivised.

Hope that helps :slight_smile:

There are many different points to carefully consider when selecting a chain to deploy on. I think before deciding, we should form some base criteria.

Here’s my proposal for the base criteria points:

  • Level of decentralization (consensus mechanism, # of validators, validator share distribution, distribution of supply)
  • Presence of on/off-ramps and bridges
  • Network uptime
  • Block time
  • Presence of reliable data oracles
  • Number of existing protocols
  • Number of unique addresses
  • DEX liquidity / swapping [capital] efficiency
  • Transaction cost magnitude / scalability (i.e. daily_transactions / cost_to_swap)

Thoughts on this list of criteria points?

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Another one I’d add is borrower demand: Are there borrowers active on the chain (or who have expressed willingness to use the chain) who would borrow from TrueFi pools?

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I would say borrower demand is the top qualifier. Borrowers likely don’t want to wait for withdrawal times and need a fast on/off ramp for funds. Borrowers also need to use chains with a higher TVL in order to attract lender volume. BSC and Polygon seem like the best contenders due to high TVL and east off-ramps into exchanges.

Another important factor is ease of development. Most chains are EVM compatible (which means we can use our existing solidity contracts). Any chain that is not EVM compatible is unlikely to be appealing, since our contracts already incur expensive development and audit costs. The only major projects that don’t use EVM are Terra and Solana.

We will put together a borrower poll and get some feedback!