TrueFi joins Optimism, bringing on-chain credit to more people.
Protocol for unsecured lending TrueFi is the newest project to debut on Optimism, Ethereum’s popular layer-2 scaling solution, which is expected to increase demand from non-institutional lenders. TrueFi’s lender community will benefit from a speedier and less expensive user experience, as well as exposure to a larger pool of retail lenders, by launching on Optimism. In a written statement, Rafael Cosman, co-founder of TrustToken, said, “TrueFi users may now lend, borrow, and start portfolios on Optimism to experience drastically reduced transaction costs and network speeds.”TrueFi was developed by TrustToken, a stablecoin operator, and distributed to institutional clients in November 2020. TrustToken created a new loan marketplace on TrueFi in February with the goal of allowing financial institutions to build and sell their own financial products. He said, “Because Optimism transactions are on average 77 times cheaper than Ethereum, we predict increased adoption from non-institutional lenders, hence expanding worldwide access to TrueFi’s financial potential.”
More than 40 protocols are presently deployed on Optimism, indicating that more projects are eager to make use of increased features like scalability and cheaper pricing. Optimistic Rollups, a scaling method that works in combination with Ethereum’s main chain, have been intended to accommodate any decentralized apps operating on Ethereum. With more projects launching on Optimism in the last week, the chain’s total value locked, or TVL has increased. TVL now has a market capitalization of $369 million, up over $100 million since May 29. Late in April, the network TVL reached a high of $510 million.