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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etherscan

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Lending

TrueFi

# TrueFi Token incentives Methodology

## 1. Overview

TrueFi token incentives measures the daily USD value of TRU tokens distributed as rewards through TrueFi's lending protocol on Ethereum. This metric tracks protocol-issued token incentives to users, capturing the cost of token-based rewards used to bootstrap lending activity and retain users. The calculation aggregates daily distributions from TrueFi's reward distribution contract and converts token amounts to USD values.

## 2. Data sources

- **Ethereum blockchain events**: Parsed `Distributed` events from TrueFi v1's `LinearTrueDistributor` smart contract on Ethereum
- **Token price feeds**: End-of-day price feeds for TRU token USD valuation
- **Token metadata**: TRU token decimal precision data for accurate amount calculations

## 3. Step-by-step calculation

### Component A: Raw token distribution extraction
- **Purpose**: Extract TRU token distribution events from TrueFi's reward contract
- **Logic**: Filters Ethereum event logs for `Distributed` events emitted by the `LinearTrueDistributor` contract. Each event represents a reward payment to a user. The system hardcodes the TRU token contract address `0x4c19596f5aaff459fa38b0f7ed92f11ae6543784` to ensure only TRU token distributions are captured. Events are deduplicated using transaction hash and log index to prevent double-counting.
- **Key fields**: `block_timestamp` for timing, `transaction_hash` and `log_index` for uniqueness, `amount` field containing raw token quantities distributed

### Component B: Daily aggregation and standardization
- **Purpose**: Aggregate distributions to daily totals and apply business classification
- **Logic**: Groups distribution events by day using timestamp truncation to daily boundaries. Assigns business metadata including 'Lending' as the business line, 'lending' as both market sector and business segment, and 'v2' as the version identifier. The chain is hardcoded as 'ethereum' and product is left null as distributions aren't tied to specific lending products.
- **Key fields**: `timestamp` truncated to day level, `token_incentives` as the sum of distributed amounts, business classification fields

### Component C: Currency conversion and decimal correction
- **Purpose**: Convert token amounts to USD and correct for decimal precision
- **Logic**: Applies USD conversion using end-of-day token prices matched to the distribution date. Simultaneously corrects raw token amounts for TRU token's decimal precision to calculate actual distributed quantities. Uses the `convert_to_usd_and_correct_decimals` macro which handles both currency conversion and decimal adjustment in a single operation.
- **Key fields**: `token_incentives` converted from raw token units to USD values

### Final aggregation
- **Combining components**: The pipeline processes data sequentially through extraction, daily aggregation, and currency conversion without requiring complex joins between components
- **Currency conversion**: USD conversion uses end-of-day TRU token prices matched to each distribution date, ensuring consistent daily valuation
- **Time aggregation**: Daily boundaries are defined using timestamp truncation, aggregating all distributions within each calendar day
- **Final calculation**: The metric represents the total USD value of TRU tokens distributed daily as incentives, calculated as the sum of (individual distribution amount × end-of-day TRU price) for all distributions on each day. Schema validation ensures data quality and zero-filling maintains continuous daily series for consistent reporting.

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

Value of native tokens distributed as incentives.

TrueFiTRU

Token incentives

Token incentives

Competitive landscape