TrueFi: a pioneer in uncollateralized lending

Lending is the main pillar of decentralized finance (DeFi), with a net value locked of over $44 billion in the top 3 lending protocols as of this writing, including Maker, Compound, and Aave v2.

One common feature among the most widely-adopted lending protocols is that all issued loans have to be over-collateralized. Collaterals can be forcefully liquidated by keepers to cover the outstanding debt should a position be deemed at risk, which is usually when the position falls below a certain minimum collateralization ratio. That way, loans can be taken out anonymously and trustlessly while mitigating the risks of protocol insolvency should delinquent borrowers default.