This specific product is new. The ERC-4626 credit vault contracts were deployed on TrueFi last month. @Kaimi and I are bringing this idea here because we believe Gitcoin could help us experiment and build impactful applications for this infrastructure.
More on the product:
I’ve created a live demo of the described vault here on Optimism Goerli testnet. Additionally, you can watch a video walkthrough of this product here.
The TrueFi protocol has facilitated >$1.7bn in on-chain credit to crypto institutions and “real world asset” (RWA) borrowers since 2020.
Ideas on potential applications:
Inspired by recent ideas in [GCP-001] - PASSED - Funding IndexCoop gtcETH offering and Proposal: Carbon-Neutral Policy at Gitcoin, Gitcoin could participate in this type of vault to help bring together on-chain financing of climate impact projects.
The structure could help attract both profit-oriented and public goods-oriented lenders, where (i) public goods lenders receive protection against credit defaults in return for donating a portion of interest generated to the Gitcoin matching pool, and (ii) profit-oriented lenders receive more upside through leveraged returns.
If there is interest in this type of pursuing these types of experiments, we would like work with TrueFi to bring together asset originators and lenders to make this possible.