TrueFi introduced the dollar-based TRI token for real-world asset trading

Decentralized Credit Protocol TrueFi introduces the Trinity Protocol to increase the efficiency of on-chain Real World Assets (RWA) capital. The new protocol uses a dollar-based TRI token backed by collateral assets to make it easier for users to access leverage and hedge risks.

The interest-bearing tfBILL, a tokenized short-term U.S. Treasury bill product, will be the first collateral asset used to support TRI. Other TrueFi pools, RWA from different protocols and other crypto-native assets can also be used.

A user can spend TRI on Trinity using tfBill or other assets as collateral and automatically convert it to stablecoins on the market maker. The user can spend TRI with a smart contract called commodity, borrow up to 92% loan-to-value ratio in TRI, exchange that again for statscoin, spend more TRI and repeat the process. Finally, the process allows the user to obtain up to 15-20% net yield.

Alternatively, a user can exchange stablecoin for TRI and share in the sTRI Vault, which is expected to be “close to or above T-bill rates.” TRI can also be traded in secondary markets.

Related: TrueFi issues first notice of default on $3.4M BUSD loan.

The RWA peak on the chain was in April 2022, according to TrueFi. At the time, he had hundreds of millions in loans to businesses. Right now, the on-chain loan market is only a third of its peak.

Trinity lives on the Optimism Sepolia testnet. After the audit is completed, the first users will be selected. It expects to have a $40 million TRI mint cap on the launch issue.

TrueFi is proposing to launch Trinity on Coinbase's layer-2 Base network. It will not be available to US users in a “very conservative initial release”. The database contains approximately 150,000 verified addresses that indicate that the user is not based in the US and that the institutions are on an approved registry.

TrueFi introduced its first protocol in 2020 and raised $1 billion in loans by 2021.

Journal: Unstable Coins: Debasement, Bankruptcy and Other Risks Looming.