Truefi – Changes Needed!

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What has happened to Truefi? 2022, Truefi had hundreds of millions to TVL lending to all these trading firms. Now the TVL is close to zero.

TVL – It’s sooo low!

The TVL is so low at something like $400,000 and only 3 borrowers, borrowing money. But protocol has paid people like Wallfacer, Adapter, Cicada, Akemona and Foundation millions and millions of tokens for just this.

Multiple of TVL in Bad Debt – What are we going to do?

There are millions of dollars of Bad Debt.

Another thing is the bad debt issue. Lenders who have lent using the protocol in the tfUSDC pool, the tfBUSD pool, and Alameda pool are still waiting for any repayments.

Why hasn’t the Alameda claim been sold and money returned to lenders?
Why after a buyout of Delt.ai by Albo are lenders still waiting for money to be returned and concluded already?
Was there conflict of interest where Archblock (who used to operate this platform) put money into Delt.Ai and then also put Truefi lender money in?

Shouldn’t the foundation follow up on this?

Discord is a mess!

Since there hasn’t been a handover of Discord, the server has been filled with spam advertisements and no real discourse.

The community is broken and needs to be revived. There is no real leadership here and nothing is done to bring in new token holders or DAO participants.

Overhang of Lawsuits?

Truefi used to be run (or still?) by Archblock, which was named Trusttoken - and now its owners or Archblock and I think are under pressure of lawsuits. Recently, Justin Sun of Tron, launched a serious lawsuit against Archblock key figure, Alex De Lorraine, accusing him of corruption.

Even before this, Archblock and its key figures like Alex De Lorraine and Rafael Cosman is fighting a lawsuit brought by a former close co-founder and partner in Truefi, Daniel Jaiyong An. Mr. An is accusing Archblock and the individuals of misleading investors and screwing him out fo TRU tokens.

Here are links to the lawsuits.

What is the relationship now between Archblock and Truefi? What influences does Archblock or its founders have? Its important since there’s pressure from lawsuits regardless of the outcome might be. Any clarity on this would be great.

Waning Interest in the Token

When DWF took over the Market Making, the previous 3 months of volume on Binance TRUUSDT pair traded 4 billion tokens monthly on average. This past month, the volume of the pair was 1.3 billion tokens. This is a drop of 2/3rds of tokens! If its about US dollar value, its even a lot more!

And with nearly 1 year in, and maybe its not a big amount, where are DWF’s interest payments for borrowing TRU tokens for the Market Making Deal? I think its going into the Timelock contract, shouldn’t the funds be used for the project than just sitting there wasting?

I think changes are needed!!! New energy for spinoff and synergy!

  1. I think Polaris idea is a great start to make a new product and more money should be given to it before it might be too late. The current budget made is too little and I hope its not too little and too late! A spinoff of this gives Truefi one more way of expand RWA in crypto.

  2. Bring in new ideas and different products. I think there could be some good protocols to get their TVL at decent value, giving Truefi extended things to do, and maybe a move over of some active communities. Use some funds for some mergers.

  3. Bring in more community participation and make more interest in the Token. Maybe another market maker is a good thing to think about to give more activity in the token.

  4. Make sure there is dedicated leadership for the protocol even for a short time to see that good changes can be implemented. The board of directors aren’t also meant to be daily operators but have taken this role because there is a vacuum of leadership it seems.

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Hi Suvicrypto,

Thanks for the great post. We really appreciate the thoughts and have been already working behind the scenes on many of the things that you raised. We’re happy and excited to run you and the rest of the community through everything.

To start with the most important point, TVL has certainly been dropping significantly since the peaks of the market in 2021/2022. The product and the protocol have shifted hands a lot since then and we feel that the current product is not positioned to aggressively ramp up TVL quite yet. As mentioned earlier on the Forums, we are prioritizing a brand new front end that will decrease friction and improve usability of TrueFi for both institutions and retail users.

In addition, new integrations that are being rolled out over the course of the next months will increase and use-cases of the protocol. These integrations include:

  • a deployment on Plume which will be going live day 1 on Plume Mainnet and deep integrations into the Nest Product
  • an integration with Morpho, with a borrowing market of tfBills and a TrueFi focused Vault
  • deployments on other ecosystems like Ozean.

As these things start to fall into place, the product experience will compete with the best of what’s available and resources thrown at growing TVL won’t be wasted as we lose folks to product friction.

To quickly address the bad debt point, we fully agree and have been investigating this. The operating team hopes to have some more information/activity on this for the community soon.

Next, to address your point around market making of the TRU token - DWF has been the Market Maker of the token for the last year. We’re working with them closely and receive regular reports on performance. DWF has been sending interest payments of the loaned TRU to the timelock address as you mentioned. These funds can easily be accessed through governance processes. We are currently also in conversation to onboard at least one other repuatable market maker in the next budget proposal. Keep an eye out for this new market maker proposal as it’ll include treasury management for additional TRU (such as the tokens in the timelock) and potential disbursements for stkTRU holders.

As far as the relationship with Archblock - Archblock has been completely uninvolved in the protocol for as long as every current member of the team has been a part of protocol operations. The only communication between the current team and Archblock or AdL is regarding transition or governance voting matters, and Fiat payments for some of the IT services. We are working on handoff to the TrueFi Foundation as we speak. tUSD was sold to Justin Sun by Archblock years ago and is no longer being operated by anybody currently in the TrueFi ecosystem.

Separately, we totally agree on your comments regarding Socials and community. We had some team changes over the course of the last month that made it difficult to have a steady presence here. Though we have seen an uptick in engagement and more involvement from community members, this is still not enough. We are in agreement and are prioritizing this over the course of the next few weeks.

To more tangibly update the community on what’s going on here, we are in the process of onboarding a full-time community moderator. In addition, there has been immense friction on transitioning every social admin account over to the current team - we are working very hard to make sure the DAO has full ownership of admin/mod rights of our community platforms.

The way TrueFi operations are currently structured, the DAO votes for a board of directors to oversee all activity in the protocol on behalf of token holders. The DAO does not directly engage in significant direct activity but directly delegates a team of operators contracted by the Foundation. To ensure the operators are able to efficiently execute, the Board sits in between communications between them and token holders. This is why you may not have heard directly from operators.

The operating team has been hard at work on the core TrueFi protocol with the aforementioned product improvements and integrations and Polaris implementation is going according to plan. The current team has been able to execute efficiently due to the support of the token holders through the Board and is excited to present results as they being being realized!

Thanks, again, for your thoughtful post. We are hard at work and are excited to see your feedback and thoughts on our big updates and pushes coming very soon.

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Looking forward to see a new front end!

Is there any potential glimpses of it from say like a Figma or similar?

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Hello Suvicrypto,

Thank you for your excitement and question. For the time being I’ve been sharing screeshots with the community. There are some basic protypes, more than likely nothing meaningful until the design system is completed. We should have this in the coming weeks!