On October 10, TrueFi’s unsecured lending protocol sent a default notice to Blockwater Technologies due to the lack of a scheduled payment related to its $3.4 million Binance USD (BUSD) loan, the first declared default on the platform to date. . According to the company, the default does not affect creditors in their USD coin (
USDC

) stablecoin lending pools, “nor any of TrueFi’s capital markets portfolios.”

TrueFi did extensive work out of court with Blockwater executives last week, according to the statement. After examining “the difficulties associated with sudden insolvency”, the company concluded that administrative procedures under the supervision of the court would produce better results for the parties concerned.

Companies actively discuss maximum recovery for creditors and stakeholders. According to the statement:

“To date, Blockwater has made 8 payments totaling $645,405 to repay the loan. At the time of default, $2,967,458 remains due. Further updates will be provided to the TrueFi community and any action required by the TrueFi DAO will be subject to for voting and approval by token holders.”
Founded in 2018, Blockwater Technologies is a hedge fund headquartered in Seoul, South Korea. The company’s LinkedIn profile claims that its portfolio includes projects such as Fantom, Bifrost and Playdapp. The Blockwater website was unavailable at the time of publication.

TrueFi claims to have issued more than $1.7 billion in unsecured loans and has successfully raised about $1.5 billion in repayments on 136 loans, netting lenders $34.34 million in interest. As the company says:

“Despite market conditions, borrower demand remains strong and continues to outpace available capital. With a traditional and rigorous approach to underwriting, TrueFi’s loan portfolio remains healthy and active in both crypto and real-world lending.”
In June, TrueFi launched on top of Optimism, Ethereum’s popular tier-two scaling solution. In February, the company also announced a new lending marketplace, which allows asset managers to create their own decentralized financial products.

Source: CoinTelegraph

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