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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Lending

TrueFi

# TrueFi Revenue Methodology

## 1. Overview

TrueFi revenue represents the total fees earned by the TrueFi protocol across its three major versions (v1, v2, and v3) from lending operations. This metric aggregates different fee structures: upfront borrowing fees in v1, a percentage of interest earned in v2, and both protocol origination fees and manager fees in v3. The calculation provides daily USD-denominated revenue that reflects the protocol's earnings from its lending business across multiple versions and fee models.

## 2. Data sources

The calculation uses the following raw data sources:
- **TrueFi v1 events**: Parsed Ethereum `Pool_Borrow_event` logs from specific v1 market contracts to capture borrowing activity and upfront fees
- **Token transfer events**: Ethereum `Transfer` events to validate loan amounts and fee payments for v1 operations
- **TrueFi v2 function calls**: Ethereum `TrueLender_fund_function` call traces to identify v2 loan originations
- **TrueFi v2 settlement events**: Parsed Ethereum `LoanToken_Settled_event` logs to capture loan repayments and calculate interest earned
- **TrueFi v2 liquidation events**: Ethereum `SAFU_Liquidated_event` logs to exclude liquidated loans from interest calculations
- **TrueFi v3 loan events**: Ethereum `BulletLoanCreated` events from `ManagedPortfolio` contracts for v3 loan originations
- **TrueFi v3 fee configuration**: Ethereum `ManagerFeeChanged` events and portfolio creation function calls to track fee rate changes over time
- **Token metadata**: Token contract information including symbols and decimal specifications
- **End-of-day price feeds**: Token price data for USD conversion

## 3. Step-by-step calculation

### Component A: TrueFi v1 fee collection
- **Purpose**: Captures upfront fees charged when borrowers create loans in TrueFi v1
- **Logic**: Identifies borrow events from specific v1 market addresses (`0x16d02dc67eb237c387023339356b25d1d54b0922`, `0x23ade98fa576acbab49a67d2e6d4159b89ee26b9`, `0xa606dd423df7dfb65efe14ab66f5fdebf62ff583`) for supported tokens. Extracts the `fee` field from `Pool_Borrow_event` logs and validates against corresponding token transfers. Only includes events before v2 launch date (May 29, 2021). Groups fees by day per token.
- **Key fields**: `fee` amount from borrow events, `token_address` for fee denomination, `block_timestamp` for daily aggregation

### Component B: TrueFi v2 interest-based revenue
- **Purpose**: Calculates the protocol's 10% share of interest earned from successful loan repayments in v2
- **Logic**: Aggregates loan amounts by escrow address from `TrueLender_fund` function calls, then matches with repayment amounts from `LoanToken_Settled` events. Calculates interest as the difference between repayment and principal (when repayments exceed loans). Excludes any loans that appear in `SAFU_Liquidated` events. Applies the protocol's 10% interest cut to determine revenue.
- **Key fields**: `amount` from borrows and repayments, `escrow_address` for loan matching, calculated `interest` difference

### Component C: TrueFi v3 comprehensive fee calculation
- **Purpose**: Computes both protocol origination fees and manager fees for v3 portfolio-based loans
- **Logic**: For each `BulletLoanCreated` event, calculates two fee components: 1) Protocol origination fee at 0.5% annually based on `loan_duration_seconds` and `principalAmount`, and 2) Manager fee using either the portfolio's initial manager fee rate or the current rate from the most recent `ManagerFeeChanged` event. Annualizes fees using loan duration divided by seconds per year (365 days). Joins with portfolio configuration to get token addresses and names.
- **Key fields**: `principalAmount` for fee calculation base, `loan_duration_seconds` for time weighting, `manager_fee` rates (normalized from 4 decimal places), `portfolio_name` for identification

### Final aggregation
- **Combining components**: Unions all three fee types into a single dataset, standardizing fields like `business_line` (Lending), `market_sector_id` (lending), and `timestamp_grain` (day)
- **Currency conversion**: Joins with token metadata to get symbols and decimal specifications, then converts all amounts to USD using end-of-day price feeds with proper decimal correction
- **Time aggregation**: Truncates all timestamps to daily boundaries and groups fees by day, chain, version, and token
- **Final calculation**: Sums all USD-converted fees by day to produce the daily TrueFi protocol revenue, applying data quality filters and chain availability constraints

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

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

TrueFiTRU

Revenue

Revenue

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