At long last, it’s a pleasure to share the DAO report with the community. Looking forward to your feedback.
Introduction
The past year has been transformative for TrueFi DAO. As a pioneer in on-chain credit and real-world asset (RWA) lending, TrueFi continues to evolve its ecosystem by refining its governance structure, launching new financial products, and expanding its institutional partnerships.
The TrueFi DAO 2025 Report serves as a comprehensive overview of the key developments, challenges, and strategic directions for the coming year. With a strong focus on sustainable growth, financial transparency, and DeFi innovation, the DAO has made critical governance and protocol decisions that will shape the future of TrueFi.
Read the full report here: TrueFi DAO 2025 Report
Key Highlights from the Report
1. Strengthening the TrueFi Ecosystem
Over the last four years, TrueFi has facilitated over $1.7 billion in unsecured loans while maintaining a 1-4% default rate—a testament to its rigorous risk management and on-chain transparency.
As the DAO moves forward, TrueFi is focusing on bridging decentralized finance (DeFi) with traditional capital markets, enabling more seamless institutional participation.
Some of the major developments include:
- Launch of TrueFi Vaults to enable institutional-grade RWA lending
- Expansion into multi-chain integrations with Plume and Arbitrum
- Product evolution, including the introduction of tfBills and Polaris
2. Introduction of Polaris: A Yield-Bearing Stablecoin
The DAO has strategically shifted focus towards launching Polaris, a next-generation stablecoin designed to solve liquidity challenges within TrueFi.
Unlike traditional stablecoins, Polaris dynamically distributes yield from its underlying collateral, making it a compelling alternative for institutions and DeFi participants looking for stable, income-generating assets. TrueFi’s infrastructure will power Polaris, ensuring deep integrations across DeFi lending markets, cross-chain protocols, and institutional-grade credit products.
3. Strengthening Governance & Financial Transparency
The TrueFi Foundation has made significant improvements to governance, focusing on treasury oversight, contributor efficiency, and financial transparency to ensure long-term sustainability. These developments includes:
a. Restructured Service Provider Contributions
Service provider contributions have been redefined, ensuring clear scopes, measurable deliverables, and performance-based compensation for Cicada, Adapt3r, and Akemona. This aligns contributor incentives with TrueFi’s strategic goals while improving accountability and efficiency.
b. Enhanced DAO Treasury Oversight
Treasury oversight has been optimized to improve fund allocation and liquidity management. The DAO now follows a risk-adjusted budgeting approach, prioritizing essential spending while maintaining financial resilience. These measures ensure that resources are deployed efficiently to support long-term protocol growth.
c. New Financial Reporting Standards
To improve financial transparency, TrueFi has introduced quarterly reports, standardized budget tracking, and enhanced DAO financial audits. These updates provide the community with real-time visibility into treasury operations, reinforcing trust and ensuring informed decision-making across the DAO.
4. Financial Performance & Treasury Management
TrueFi DAO has taken significant steps toward financial sustainability, refining treasury management, expense tracking, and revenue diversification. The 2025 financial report highlights strong revenue growth, improved operational efficiency, and enhanced governance mechanisms.
TrueFi’s Treasury Position & Sustainability
In 2024, TrueFi DAO generated $6,040,074 in revenue, a substantial increase from the previous year. The primary driver was minting revenue, contributing $5,879,703, demonstrating the protocol’s reliance on this funding mechanism.
Operational expenses totaled $5,236,799, with Ecosystem Services accounting for $4,498,207 and People Costs at $414,841. Strict budget monitoring, implemented in Q4 2024, improved compliance and financial oversight.
As a result, TrueFi ended 2024 with a Net Operating Income of $803,335, reflecting improved efficiency and cost control.
5. Expanding TrueFi’s Institutional and DeFi Presence
TrueFi continues to strengthen its position in on-chain credit and RWA lending by forging strategic collaborations with major DeFi protocols, institutional players, and cross-chain platforms. These partnerships enhance risk management, credit underwriting, multi-chain liquidity, and regulatory compliance, ensuring sustainable growth and wider market adoption.
Strategic Partnerships & Growth Initiatives
- Adapt3r: Enhancing risk management frameworks and developing structured credit infrastructure to support institutional lending.
- Cicada: Expanding credit underwriting capabilities and increasing institutional participation in TrueFi’s lending ecosystem.
- Akemona: Facilitating tokenized debt issuance and integrating regulatory-compliant technology solutions to streamline institutional onboarding.
- Plume & Lumia: Building multi-chain RWA lending infrastructure, enabling seamless capital flows across blockchain networks.
6. A Clear Roadmap for 2025
TrueFi DAO has established a strategic six-month roadmap focused on expanding product adoption, strengthening governance, and enhancing ecosystem liquidity. The plan prioritizes the launch of Polaris, deeper tfBills integration, multi-chain expansion, and institutional engagement to drive sustainable growth.
Q1 2025
- Launch of Polaris MVP – Introducing a yield-bearing stablecoin to enhance liquidity and capital efficiency.
- Cross-chain deployments on Base & Lumia – Expanding TrueFi’s reach across multiple blockchain ecosystems.
- Enhanced DAO governance frameworks – Strengthening decision-making processes and financial oversight for long-term sustainability.
Q2 2025
- Institutional adoption of Polaris – Driving integration with institutional investors and DeFi protocols.
- Scaling ecosystem liquidity and treasury efficiency – Optimizing fund allocation and improving capital management strategies.
- Marketing and BD expansion into TradFi & DeFi sectors – Strengthening awareness and engagement with both traditional financial markets and decentralized ecosystems.
Conclusion
2025 marks a pivotal year for TrueFi as it doubles down on RWA lending, on-chain credit, and financial innovation. With Polaris set to redefine stablecoins, multi-chain integrations expanding TrueFi’s reach, and governance enhancements ensuring transparency, the DAO is positioned for sustainable long-term growth.
We invite the community to review the full report and engage in discussions about TrueFi’s next steps. We’re hosting a Town Hall (community call) in that regard on X scheduled for *Wednesday 19th of February at 12 PM GMT+8
RSVP here: x.com
Your participation is key to shaping the future of TrueFi.
Read the full report here: Notion – The all-in-one workspace for your notes, tasks, wikis, and databases.