Proposal: Whitelist TRU plus 500K BNT co-investment

[rafaelcosman]

This proposal is expected to appear on Snapshot for voting on Monday 19, April 2021 at 12:00 pm UTC.

TL;DR

• Proposal to whitelist TRU.
• Proposed co-investment is 500,000 BNT.
• There are no apparent security concerns that would prohibit whitelist status.
• There is no reason to doubt the legitimacy of the TrueFi project.
• The benefit to Bancor is clear.

Contract address: 0x4c19596f5aaff459fa38b0f7ed92f11ae6543784

Project Website: TrueFi.io

Security

TRU does not have an elastic supply, or rebase mechanism. The TRU token supply is fixed at 1,450,000,000, of which 239,842,417 are in current circulation. Some tokens have been burned so in fact the total supply is now 1,442,485,442.37835615.

The contracts and addresses with the highest concentration of TRU tokens are predominantly unallocated community incentives, the token vesting contracts, two of the team’s wallets, and Binance. You can find an overview of the top wallets here and a detailed description of the token supply here.

Project

TrueFi is an on-chain unsecured lending and credit protocol. Users are able to lend stablecoins (for now just TUSD, but shortly USDC and other tokens) to TrueFi and earn a 10%+ yield on their deposits. Borrowers are diligenced and approved by governance to be able to borrow without collateral requirements. TrueFi will also be launching an on-chain credit score that other protocols will be able to utilize in an effort to improve credit efficiency throughout DeFi.

Tokenonmics

TrueFi’s token, TRU is used for both governance and staking on the platform. TRU stakers deposit TRU into the protocol’s staking contract and are credited with stkTRU (currently, about 30% of circulating supply is being staked) which can be used for governance and approving loans. In the case of a default, stakers stand to lose a portion of their staked TRU. Stakers are also entitled to all fees generated by the protocol.

Community and Communication

TrueFi is active on Twitter, Discord, and Telegram.

Available Audits

All audits can be found publicly on our Github page.

Market and Trading Data

• ATH was $0.615301 (Feb 13, 2021)
• ATL was $0.108493 (Nov 26, 2020)
• Max supply of 1,442,485,442.37835615
• TRU is available on SushiSwap and Uniswap (currently incentivizing liquidity on Uniswap and will soon be shifting that over to Sushiswap)
• Coingecko

[glenn]

Adding some data points that I previously submitted in the original proposal. The largest trading pools for TRU are paired with ETH and they are roughly 15M (uni) and 5M (sushi) in size.

Given the above, I think that a 500K BNT co-investment limit is reasonable and we can always increase this amount if there is a high demand for single sided liquidity from LPs.

With a 500K BNT co-investment, we are looking at 3.5M in liquidity from our side (with BNT price at $7) for a pool that could potentially be 7M deep (assuming that the TRU side fills up completely). This is a good starting point and should support the volume for this token:

which has had 1.3M average daily volume the past 30 days on Uniswap and Sushiswap combined.

For anyone else that’s curious about the token distribution, I found the following from one of their blog post:

For others that might not be aware, the TrustToken team is also behind the following stable coins:

1. TUSD
2. TGBP
3. TAUD
4. TCAD
5. THKD

with TUSD having the largest market cap (~$325M). TUSD might be a good contender for Bancor when we have shadow pools (but that would be for a separate proposal). Overall, I think this is a solid project for us to onboard and it will get my vote.

References:

[mbr]

Very nice work!
Thank you for the contribution
I am moving this to LEVEL 2, with an expected voting period to begin on the 19th.