Figured id start this thread here to share some ideas and pick the teams brain.
Currently there is a permissioned capital pool (managed by Truefi Trading) that lends out to Alameda. The pool is about 60% lent out.
Should there be any action taken by Truefi Trading to prevent new loans being created? In worst case scenario what are the steps of actions by Truefi Trading?
The other thing here is that it seems that Alameda is a backer of Truefi (participated in a 12.5 million $ round last year). Does this impact the resolution or available options that Truefi has when dealing with a potential bankruptcy?
Thanks for the questions. I’ll rephrase your questions as I understand them, and offer some answers:
1. Can Alameda issue itself further loans in their single borrower pool?
No, the pool manager TrueTrading oversees loan issuance in the SBP. No further Alameda loans are expected to go out.
2. How will TrueFi/Archblock respond in case of Alameda default in the SBP?
Much in the same way we described it in this blog post, covering our default avoidance and response measures. In this case, the Alameda SBP is not covered by TRU stakers, so the primary response in case of default would be a collections action against the borrower, which may be handled by Archblock or TrueTrading (the portfolio manager) on behalf of TrueFi and its lenders. Recovered assets would be distributed to affected lenders to make up all or partial losses.
3. Does Alameda Research being a TrueFi investor have any influence on the terms of their loan, or TrueFi’s default response?
It does not, in any material way, affect TrueTrading/Archblock’s response in case of default.