TrustToken, the stablecoin platform and creator of unsecured lending protocol TrueFi, today announced a new collaboration with WOO X, a zero-fee digital asset trading platform incubated by Kronos Research, a crypto asset quant company, and market maker.
WOO X will use TrueFi to support its institutional services by issuing loans to its clients through the protocol.
TrueFi will be WOO X’s lending protocol of choice for uncollateralized loans to its institutional clients in its native WOO token. Moreover, this creates TrueFi’s first non-stablecoin portfolio.
WOO DAO, a decentralized autonomous organization working to foster the growth of the WOO Network, will provide the tokens for the loans, with all yields returning to the WOO DAO.
Financial institutions trading on the WOO X platform have been verified through KYC measures, and the loan principal will only be released into their WOO X wallets. Due to TrueFi’s protocol technology, this type of transparency will show WOO token holders where DAO funds are moving.
“Uncollateralized on-chain lending is the most capital-efficient credit a financial institution can get. Our first non-stablecoin portfolios are further testimony for how versatile TrueFi lending can be, supporting any digital assets at all–Bitcoin, Ether, and other top coins are also very much a possibility.”
– Rafael Cosman, CEO of TrustToken
This uncollateralized lending program follows an update of WOO X’s staking program, which now allows clients to stake 600,000 WOO tokens to trade without fees via the platform’s API.
The update has prompted demand for WOO loans among financial institutions looking to gain access to the service fast and with reduced risk exposure.
“We are thrilled to be partnering with TrueFi to grant institutions fast and efficient credit through DeFi’s first uncollateralized lending protocol. By giving traders more flexibility, we enable more usage of the network, which ultimately benefits the entire ecosystem.”
– Ran Yi, Chief of Ecosystem at WOO Network