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.

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# TrueFi Fees Methodology

## 1. Overview

The TrueFi fees metric measures the total fee revenue generated by the TrueFi lending protocol across its three major versions (v1, v2, and v3). This includes both direct fees charged to borrowers and interest earned on loans. The metric combines upfront origination fees, variable manager fees, and interest income calculated as the surplus of loan repayments over principal amounts. The calculation handles the evolution of TrueFi's fee structure from simple interest-based models in v1/v2 to more sophisticated fee calculations in v3 with duration-based pricing and variable manager fees.

## 2. Data sources

- **TrueFi v1 lending events**: Parsed Ethereum `Pool_Borrow` event logs from TrueFi v1 pool contracts containing borrower addresses, fee amounts, and loan metadata
- **Ethereum token transfers**: Token transfer events filtered by TrueFi v1 market addresses to capture actual loan disbursements and repayments
- **TrueFi v2 lending functions**: Parsed Ethereum `TrueLender_fund` function call traces that initiate loan funding in TrueFi v2
- **TrueFi v2 settlement events**: Parsed Ethereum `LoanToken_Settled` event logs recording successful loan repayments in TrueFi v2
- **TrueFi v2 liquidation events**: Parsed Ethereum `SAFU_Liquidated` event logs tracking defaulted loans in TrueFi v2
- **TrueFi v3 loan creation events**: Parsed Ethereum `ManagedPortfolio_BulletLoanCreated` event logs containing loan terms, amounts, and duration data
- **TrueFi v3 fee change events**: Parsed Ethereum `ManagedPortfolio_ManagerFeeChanged` event logs tracking manager fee updates over time
- **TrueFi v3 portfolio creation data**: Parsed Ethereum `ManagedPortfolioFactory_createPortfolio` function calls and `PortfolioCreated` events establishing portfolio metadata
- **Token metadata**: Token symbol, decimal, and contract address mappings for proper amount calculations
- **End-of-day price feeds**: Historical token price data for USD conversion of fee amounts

## 3. Step-by-step calculation

### Component A: TrueFi v1 fees
- **Purpose**: Captures direct borrowing fees and interest income from TrueFi v1 pools
- **Logic**: Extracts fee amounts directly from `Pool_Borrow` events using hardcoded v1 market addresses (0x16d02dc67eb237c387023339356b25d1d54b0922, 0x23ade98fa576acbab49a67d2e6d4159b89ee26b9, 0xa606dd423df7dfb65efe14ab66f5fdebf62ff583) and supported token addresses. Joins borrow events with token transfer records to capture both principal and fee components. For interest calculation, aggregates total borrow amounts and repayment amounts per escrow address, then calculates interest as the positive difference between repayments and borrows
- **Key fields**: `fee` amounts from borrow events, `amount` values from token transfers, `escrow_address` for loan tracking, `token_address` for asset identification

### Component B: TrueFi v2 interest
- **Purpose**: Calculates interest income from TrueFi v2 loans, excluding direct fees
- **Logic**: Identifies loans through `TrueLender_fund` function calls joined with token transfers to loan token addresses. Aggregates total borrowed amounts and repaid amounts per escrow address using `LoanToken_Settled` events. Excludes any loans that appear in liquidation events to avoid double-counting. Calculates interest only when repayment amount exceeds borrow amount, setting negative differences to zero
- **Key fields**: `loanToken` addresses from function calls, `returnedAmount` from settlement events, `escrow_address` for loan grouping

### Component C: TrueFi v3 fees and interest
- **Purpose**: Calculates both upfront fees and interest for TrueFi v3's bullet loan structure
- **Logic**: For fees, uses `BulletLoanCreated` events to calculate two fee components: protocol origination fee (0.5% annually) and manager fee (variable by portfolio and time period). Applies loan duration and principal amount to calculate annualized fees. Manager fees can change over time per portfolio, requiring temporal lookup against manager fee change events. For interest, aggregates borrow and repayment amounts per loan ID, calculating interest as positive difference between expected repayment amounts and actual borrowing amounts. V3 repayments are synthetic, calculated as borrow timestamp plus loan duration for matured loans
- **Key fields**: `principalAmount` and `loanDuration` for fee calculations, `repaymentAmount` from loan creation events, `portfolio_name` for grouping, `managerFee` values from dimensional lookups

### Final aggregation
- **Combining components**: Unions all fee and interest records from v1, v2, and v3 components with standardized column structure including timestamp, chain, version, token address, and amount fields
- **Currency conversion**: Applies decimal correction based on token metadata, then converts all amounts to USD using end-of-day price feeds matched to transaction dates
- **Time aggregation**: Truncates all timestamps to daily grain for consistent time series reporting
- **Final calculation**: Sums all fee and interest amounts by day, token, and version to produce the final fee revenue metric across the entire TrueFi protocol ecosystem

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

Total value users pay to use a protocol (gross fees, user-paid fees).

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Fees

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