TRU token is the native token of TrueFi protocol. It is used for staking and participating in governance decisions.

TrueFi is a hybrid combination of both decentralized finance (DeFi) and centralized finance (CeFi) protocol for uncollateralized lending.

The important thing to note is that they are lending without collateral, which means that they are only lending to high-profile institutions and not individuals. They perform various rigorous credit checks on the institutions before giving loans to them.

Once they complete the credit check and analyzed the risk appetite of loan takers then True token holders come into the picture and vote to approve a loan for the institution.

TrueFi stakers are those who stake TRU tokens through the staking dashboard of TrueFi and for staking in return you receive stkTRU which acts as a receipt for staking your TRU tokens and with the help of stkTRU you can participate in TrueFi’s governance decisions, and you gain automatically the right to approve or reject the borrower loan applications.

Major risks are associated with the staking, suppose you approve the bad loans then there is a high chance that this can harm your overall returns.

By depositing stablecoin into one of the lending pools on its platform in return, you will receive a TrueFi version of these stablecoins like tfUSDT, tfUSDC, tfTUSD and this means that you can farm these tokens in TRU farming pools and can earn additional returns.