Liquidity providers deposit funds to the lending pool and receive a portion of the interest (supply-side fees).

TrueFi is a non-custodial lending protocol built on Ethereum offering undercollateralized loans for verified borrowers. TrueFi was founded by Rafael Cosman and launched in 2020.

TRU tokenholders own and govern the protocol. They currently take a cut of the interest and an origination fee (revenue). TrueFi’s investors include a16z, BlockTower Capital, Alameda Research etc.

github

twitter

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etherscan

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Lending

TrueFi

# TrueFi Expenses Methodology

## 1. Overview

TrueFi expenses represents the daily USD value of TRU token incentives distributed by the TrueFi protocol. This metric tracks protocol operational expenses through token distributions made via the LinearTrueDistributor contract on Ethereum. The metric answers the business question: "How much does TrueFi spend daily on token incentives?" The calculation extracts TRU token distribution events, converts raw token amounts to USD values, and aggregates them daily.

## 2. Data sources

- **Blockchain events**: Parsed Ethereum `Distributed` events from the LinearTrueDistributor contract (`0x4c19596f5aaff459fa38b0f7ed92f11ae6543784` for TRU token)
- **External data**: End-of-day price feeds for TRU token price conversion
- **Token metadata**: TRU token decimal configuration for amount normalization

## 3. Step-by-step calculation

### Component A: Raw token incentive extraction
- **Purpose**: Extracts TRU token distribution events from the LinearTrueDistributor contract
- **Logic**: Queries Ethereum blockchain for `Distributed` events from the LinearTrueDistributor contract. Each event represents a TRU token distribution to protocol participants. The component captures the block timestamp, transaction hash, log index, and raw token `amount` from each distribution event. All distributions are classified as Ethereum chain, version v2, with the hardcoded TRU token address.
- **Key fields**: `block_timestamp` for timing, `transaction_hash` and `log_index` for uniqueness, `amount` for raw token quantity distributed

### Component B: Daily aggregation and USD conversion  
- **Purpose**: Aggregates token distributions by day and converts to USD values
- **Logic**: Groups the raw distribution events by daily boundaries using timestamp truncation to day level. Applies decimal correction to normalize raw token amounts based on TRU token metadata. Converts the corrected token amounts to USD using end-of-day price feeds for TRU token. Classifies all distributions under 'Lending' business line since TrueFi operates as a lending protocol. Sets product ID to null and assigns appropriate business segment and market sector identifiers.
- **Key fields**: `timestamp` truncated to day, `token_incentives` as the USD-converted daily distribution amount, business classification fields

### Final aggregation
- **Combining components**: The processed daily token incentive values flow directly into the final expenses model
- **Currency conversion**: Raw TRU token amounts are converted to USD using end-of-day price feeds with decimal normalization applied
- **Time aggregation**: Daily boundaries are established by truncating block timestamps to day level, with any missing days filled with zero values
- **Final calculation**: The `token_incentives` field is renamed to `expenses` to represent the daily USD value of TrueFi's token distribution expenses. Chain availability filtering is applied to ensure only supported chain data is included in results.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Total project operating and incentive expenses.

TrueFiTRU

Expenses

Expenses

Competitive landscape