Unlocking Liquidity

Unlocking liquidity in long tail assets

What is Tren Finance?

Tren Finance is a DeFi protocol developed by a team of experienced DeFi enthusiasts, aiming to unlock greater capital efficiency for a wide range of crypto assets. The protocol addresses a critical challenge: the limited support for diverse tokens in existing DeFi platforms, resulting in a "metaphoric wall" that hinders effective use of these assets.

Problem: Current markets lack support for niche assets as collateral, limiting the opportunities for users holding long-tail assets, which make up the bulk of the crypto landscape. These assets are often unsuitable for current protocols due to systemic risk vulnerabilities.

Solution: By using isolated modules, we are able to contain the risk to an individual asset through a tailored risk assessment. This structure allows us to safely integrate a wider range of assets, offering more collateral options for users and mitigating a protocol-wide failure.

Protocol Features

Modular Money Markets

Modular money markets offer the adaptability to respond to changing market conditions, uphold stringent risk management, and foster ongoing innovation. By customizing each market segment to accommodate a specific asset, Tren Finance can effectively serve a wide variety of tokens.

Isolated Risk

Each asset operates as its own independent money market. By segregating these assets into distinct pools, the risks associated with one asset do not spill over to others. This structure proves especially beneficial when managing assets that vary significantly in risk and liquidity levels.

Protocol Bootstrapped Liquidity

Current protocols depend on lenders to supply liquidity to establish a lending market. Our protocol owned synthetic dollar TrenUSD, is employed to bootstrap each isolated module, thereby offering immediate liquidity and directing all supply-side interest to the DAO. This approach diminishes the dependence on external market participants and hastens the introduction of new lending markets, facilitating a more seamless integration of a variety of assets.

Hooks

We utilize hooks, including auto-compounders and optimizers, developed in collaboration with our partners. These contracts direct collateral deposited in isolated modules towards external yield-generating smart contracts, such as yield farming protocols or staking platforms. This not only simplifies the process for users but also optimizes their returns by seamlessly integrating with multiple yield sources.