An Exclusive Interview With TrustToken’s Analytics Head, Tyler Wallace, on Constructing a New Global Financial System
TrustToken, a platform known for its innovative products and unique approach to financial systems in the world of DeFi, has made a name for itself. Initially focused on tokenizing fiat through stablecoins, TrustToken expanded into DeFi with the creation of TrueFi, a transparent lending network.
In this interview, Tyler Wallace, the head analyst at TrustToken, shares his insights on the platform, the current state of DeFi, and its possible future. He also addresses the pressing question of whether or not DeFi should be regulated.
When asked about the transition from traditional finance (TradFi) to DeFi and crypto, Tyler states that it is the natural next step in the evolution of finance. The opportunities that DeFi brings are unparalleled in traditional finance. Liquidity mining in DeFi, which allows users to earn higher yields and ownership of protocols, is a major driver for its growth. DeFi also offers arbitrage opportunities that are rarely seen in traditional finance. For investors with a high risk tolerance, DeFi provides a golden opportunity to earn yields and own an emerging asset class.
Tyler explains that TrueFi stands out among DeFi protocols as it offers fixed-term zero-collateral loans, which is a rarity in the industry. Many DeFi protocols require users to over-collateralize their loans, locking up more assets than the capital they borrow. This practice aims to compensate for asset volatility and prevent liquidation but creates high entry barriers. TrueFi introduces unsecured lending to DeFi, eliminating the need for collateral and allowing almost anyone across the globe to participate in the lending and borrowing process. The community-driven onboarding process assigns borrowers a credit score, ensuring risk parameters are assessed by the community.
So far, TrueFi has provided over $1 billion worth of zero-collateral loans with a 0% default rate, making it a welcomed approach in the DeFi community.
Regarding blockchain’s impact on financial transparency through on-chain analysis, Tyler emphasizes the importance of data in the modern world. Blockchain technology serves as a vast open database, offering valuable data for better decision-making and product development. On-chain analysis provides real-time insights to businesses, institutions, and regulators, eliminating the need to wait for quarterly reports. Tools like Etherscan, Dune Analytics, and Defilama contribute to creating a transparent industry, and Tyler believes on-chain analysis will play a significant role in the success of DeFi.
When discussing the future of crypto and DeFi, Tyler expresses excitement about the potential to unleash socio-economic growth worldwide. The removal of barriers to entry and expanded access to capital are particularly promising. DeFi lending protocols have enabled individuals from remote locations to apply for and receive approved loans, allowed artists worldwide to create and sell NFTs, and empowered young builders to launch innovative products attracting millions of dollars. The possibilities with crypto are endless, and Tyler looks forward to witnessing how the future unfolds.
Tags: DeFi, Interviews
