The unsecured loan protocol TrueFi has become the latest project to launch on Optimism, the popular layer 2 scaling solution for Ethereum, in a move that is expected to drive demand from non-institutional lenders.
By launching on Optimism, the TrueFi lender community will have access to a faster and cheaper user experience, as well as gain exposure to a broader group of retail lenders. “TrueFi users can now lend, borrow and launch wallets on Optimism to enjoy dramatically reduced network speeds and transaction costs,” Rafael Cosman, co-founder of TrustToken, told Cointelegraph in a written statement. Furthermore, he explained:
“Since Optimism transactions are on average 77x cheaper than Ethereum, we expect further adoption from non-institutional lenders, hoping to increase global access to TrueFi financial opportunities.”
TrueFi was built by stablecoin operator TrustToken and shipped to institutional clients in November 2020. In February, TrustToken launched a new TrueFi lending marketplace designed to give financial institutions the ability to design and launch their own financial products.
There are now more than 40 protocols deployed on Optimism, a sign that more projects were looking to take advantage of improved functionality such as higher scalability and lower fees. Optimism has been designed to support all decentralized applications running on Ethereum through Optimistic Rollups, a scaling solution that operates in tandem with the Ethereum mainchain.
With more projects deployed on Optimism, the chain’s total value locked, or TVL, has skyrocketed in the past week. Currently, the network’s TVL is over $369 million, an increase of almost $100 million since May 29. The network’s TVL peaked at the end of April, above $510 million.
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