Some questions from a noob that wants to start using TrueFi

Hey guys!

I just discovered this project and I’m very interesting into join it, but I have some questions. If someone can help me it would be great:

  1. I’m looking for a similar option like Compound or Maker DAO DAI interest Savings to make some money from my USDC, DAI or, in this case, with TUSD. I see that here I can put my TUSD into two pools: lending and liquidity. Reading the FAQ I saw that when I deposit in lending, my TUSD will be used also in Curve to make more money, is that optional? What would be the interest without invest in Curve?

  2. The point 1 is related with this second. I plan to cover my funds using TrueFi Nexus Mutual, but it only would cover a fail of TrueFi smart contract, not Curve. If my funds are in Curve and a bug happens there, I’d lost all my funds even having the TrueFi NXM cover… Because of that, I don’t want to invest the money in Curve, to not lose my protection or having to buy an additional protection for my funds also in Curve smart contract cover in NXM, it would be too much cost.

  3. In summary, I just wanted to know if I just can put my TUSD here with the less risk, and with the funds not going out of TrueFi so my cover works and knowing how much aprox. APY can I make with that.

Thanks a lot

I think the lending pool is a bundle with TUSD lend to large funds and idle money in Curve and it is not optional.
However, I think it shall not be a big problem as in general cases, more than 80% is in TrueFi pool, sometimes even 9x%. Your capital will only expose to Curve’s bug risk for a small portion. Losing all your funds is only possible when no fund borrow money in TrueFi.

Thanks. And if I deposit in the TrueFi lending pool, will I receive TUSD or TRU token?

Best regards

Staking reward (currently 5x%) will be in TRU and the interest of lending (currently 1x%) will be accrual eventually in terms of TUSD value increasing if no default of loan.

Hi! Yes, I think you might not be exactly understanding TrueFi. And that’s ok :slight_smile:

At present, the flow is:

→ Deposit TUSD into the TrueFi pool with the intention of it being lent out to a borrow
→ Since sometimes there is more capital deposited than there are active borrow requests, we want to make sure that the pool is always earning some interest. If TUSD were just sitting there, it would be earning 0%, so we put that TUSD into yCRV where it both earns a yield in $s and in CRV tokens (which the pool farms)

This is not optional. You can see the breakdown of where money is at

I’m not exactly sure how NXM cover works, but in any case, your TUSD will be leaving TrueFi (whether that means it’s going to curve or it’s going to a borrower).