Alameda plans to continue lending out $750 million in TrueFi institutional DeFi loans within a year.
Alameda Research, founded by FTX's SBF, has announced that it will borrow up to $750 million from the DeFi lending platform TrueFi within a year. Alameda was also one of the investors in TrustToken, the parent company of TrueFi, which raised $12.5 million in funding last year. Additionally, Alameda has borrowed from another smaller lending platform, Maple Finance.
Table of Contents
Alameda Research, a trading firm founded by FTX's SBF, has announced that it will borrow up to $750 million from the DeFi lending platform TrueFi within a year, as reported by Bloomberg. Alameda was also one of the investors in TrueFi's parent company TrustToken, which raised $12.5 million in funding last year. Additionally, Alameda has borrowed from another smaller lending platform, Maple Finance.
There has been a demand for institutional-grade lending in the DeFi ecosystem, as these institutions often struggle to access large amounts of funding from traditional financial institutions. Platforms like TrueFi focus on providing institutional-grade lending in DeFi. Since the clients are institutions, TrueFi does not require borrowers to fully or over-collateralize to receive loans, and it currently holds $10.8 billion in assets.
Alameda has stated that a double-digit percentage of its activities, with a daily trading volume of $5 billion, are conducted through DeFi applications; however, the actual lending volume is relatively small.
Alameda has previously used TrueFi, returning $2.09 billion in assets, with $1.39 billion still outstanding at an estimated interest rate of around 7.5%.
It was also reported that TrueFi launched its unsecured lending business.