Earlier today, an important announcement was made for the decentralized finance (DeFi) lending platform TrueFi. The project has issued a notice of default for missing a scheduled payment on a $3.4 million BUSD loan to Blockwater Technologies. After the notification, the altcoin project of the ecosystem went into decline. Here are the details…
TrueFi has issued a notice of default
Last week, the altcoin project’s credit group was trying to reach an out-of-court settlement. This included increasing the borrowing rate and extending the maturity. However, they learned that a court-controlled administrative action could lead to a better outcome for stakeholders. This is TrueFi’s first and only credit default reported to date. The credit group said it remains prudent and proactive in current macro conditions.
–As we reported as Kriptokoin.com, lending platforms have been negatively impacted by the crypto market meltdown this year. Large withdrawals in the second quarter led to the collapse of giants like Celsius Network and Voyager Digital. TrueFi said Blockwater Technologies will continue to remain in active talks with its partners. The focus will be on maximizing recovery for stakeholders and lenders. The following statements are used in TrueFi’s official announcement:
Blockwater has completed 8 payments totaling $645,405 for loan repayment. The maturity of $2,967,458 expired at the time of default. The Blockwater default does not affect any of TrueFi’s lender users in USDC, TUSD, USDT stablecoin loan pools, or any of TrueFi’s capital markets portfolios.
How about TrueFi’s unsecured loans?
TrueFi said it has raised $1.7 billion in unsecured loans. However, he stated that they have successfully collected $1.5 billion in repayments on all 136 outstanding loans. Its loans generate $34.36 million in loans for lenders. The TrueFi group said the loan book is strong and they are actively pursuing loan renewals. It also offers certain protections against default on behalf of “TrueFi SAFU” to lenders.
TrueFiSAFU oversees a fund clearly dedicated to helping lenders affected by defaults. It also provides “slashing” staked TRU “under the direction of the DAO, up to 10 percent of the staked TRU may be allocated for the benefit of lenders affected by a default.”
Altcoin price lost value
Meanwhile, TrueFi’s altcoin project TRU has lost value in the last 24 hours with the effect of the latest announcement. The coin, which is in the 502nd place with a market capitalization of $ 27.7 million, fell from $ 0.52 to $ 0.0502 in the last 24 hours. TRU set an all-time high of $1.04 on August 12, 2021. Since then, it has lost 95.12 percent of its value.
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