Unlocking Exponential LP Token Liquidity


Umoja Labs would like to propose that the TrueFi community invest 1.5mm into research and development (R&D) to determine how best to unlock better secondary market liquidity for TrueFi LP tokens. Specifically, the R&D would determine if the real-world-asset token bonded curve (RWA TBC) model is a viable pathway to

  1. eliminate liquidity provider lock-in by increasing secondary market liquidity for LP tokens, and;
  2. either (a) transform the TRU token into a flatcoin (b) introduce a new TrueFi token, or (c) create a multi-protocol token that is bonded to the value of TrueFi’s tokenized RWAs (and thus serves as a higher-liquidity, exchangeable asset for said tokenized RWAs).

In our research, we found that TrueFi could exponentially increase its LP token liquidity by enabling a RWA TBC either between TrueFi’s originated assets and the TRU token or between such unerlying assets and a new TrueFi token. The bonded token would be considered a flatcoin. Flatcoins, underpinned by tangible assets like bonds or real estate, offer a decentralized yet stable value, algorithmically linked to price indexes like the U.S. CPI.

We believe that TrueFi can make the model the most user-friendly and the most sustainable in the industry by introducing simply allowing LPs to exchange their LP tokens for a single flatcoin, enabling the TrueFi protocol to purchase its own originated assets at a discount & generate recurring revenue in the process.


  1. Exponentially increase secondary market liquidity for LP tokens
  2. Increase protocol revenues by enabling re-purchase of LP tokens at a discount by enabling LP token exchange with a protocol flatcoin
  3. Establish TrueFi as the only RWA protocol that enables instant secondary market liquidity


Today we have two proposals we wish to get feedback on.

  1. TrueFi community invest 1.5mm TRU for additional R&D of the RWA TBC model. The investment will be paid out on a milestone basis - which each milestone requiring transparent findings/update reporting to the TrueFi community.

  2. Execution of R&D with a final recommendation to the TrueFi community (via a proposal) to either (1) develop the model into TrueFi’s existing protocol ecosystem, or (2) not develop the model.

Additional Resources:

You may find the draft white paper of our research here.

You can find a video walkthrough by myself here.

Let us know your thoughts. We would love feedback from lenders, managers, borrowers, and token holders on this new model before moving to a formal proposal.