In an innovative move to enhance the capital efficiency of on-chain real-world assets (RWA), TrueFi has launched the Trinity protocol, introducing the dollar-based TRI token.
This initiative aims to simplify the process for users to leverage and hedge risks associated with real-world asset trading.
Introducing TRI: A Dollar-Based Token for Enhanced Capital Efficiency
The Trinity protocol centers around the TRI token, which is backed by collateral assets to offer users a streamlined approach to obtaining leverage.
The inaugural collateral asset will be the interest-bearing tfBILL, a tokenized version of short-term U.S. Treasury bills.
TrueFi plans to expand collateral options to include other assets from its pools, RWAs from various protocols, and crypto-native assets.
Minting TRI for Leverage and Yield Opportunities
Users have the opportunity to mint TRI by using tfBill or other qualifying assets as collateral.
By engaging in a series of swaps and mints through a smart contract mechanism dubbed a “vessel,” users can potentially achieve a net yield of 15–20%.
Furthermore, TRI tokens can be swapped for stablecoins on automated market makers, further enhancing trading flexibility and yield earning potential.
Staking and Secondary Market Trading
Another avenue for users is to exchange stablecoins for TRI and stake them in the sTRI vault, where they can earn fees yielding rates comparable to or exceeding T-bill rates.
Additionally, TRI will be available for trading on secondary markets, offering further liquidity and investment options.
TrueFi’s Market Revival Strategy
After witnessing a peak in on-chain real-world assets in April 2022, the market has experienced a downturn, currently operating at a third of its peak volume.
Through the introduction of the Trinity protocol and TRI token, TrueFi aims to invigorate the on-chain credit market and reclaim its former vibrancy.
Trinity’s Roadmap and Regulatory Compliance
Currently operational on the Optimism Sepolia testnet, Trinity awaits an audit before initiating a selective user onboarding process. The launch version is anticipated to feature a $40 million TRI mint cap.
TrueFi is also exploring a launch on Coinbase’s layer-2 Base network, with a cautious approach excluding U.S. users to align with regulatory considerations.
Since its inception in 2020, TrueFi has made significant strides in the decentralized credit market, originating $1 billion in loans in 2021.
This latest initiative marks a continued effort to innovate and expand the utility of blockchain technology in the real-world asset trading domain.
