The Problem & The Solution

Tren Finance addresses key challenges in the DeFi space, offering solutions that unlock capital efficiency and provide greater flexibility for a diverse range of assets.

Problem: Illiquid ERC-20 Tokens

$20 Billion USD worth of ERC-20 tokens are illiquid, often sitting in wallets as staked tokens, LP tokens, or vault tokens. This ties up capital that could otherwise be used for more productive purposes.

Solution: Tren Finance introduces a protocol-governed, over-collateralized stablecoin pegged to the US dollar, TrenUSD. This stablecoin unlocks liquidity from illiquid tokens, allowing users to borrow against their assets and reinvest them in other opportunities.

Problem: Limited Collateral Assets in Borrowing/Lending Markets

Current markets support only around 15 assets as collateral, limiting the opportunities for users holding long-tail assets, which make up the bulk of the DeFi ecosystem. These assets are often unsuitable for lending and borrowing protocols due to the risk they introduce.

Solution: Tren Finance leverages isolated modules, containing the risk to an individual pool while allowing for asset-specific risk parameters. This structure allows us to safely integrate a wider range of assets, offering more collateral options for users and mitigating systemic risks.

Problem: Lack of Leverage Trading for ERC-20 Tokens

Most ERC-20 tokens cannot be leveraged, limiting the potential returns and trading strategies for users.

Solution: Tren introduces a recursive lending engine that offers up to 30x leverage on assets. This feature allows users to amplify their returns on a variety of tokens, including ERC-20s, and pursue advanced trading strategies.

Problem: Slow Asset Approval in CDP Protocols

CDP protocols are often slow to approve new assets, making it harder to get listed than on centralized exchanges. This delay hinders the potential for users to capitalize on new trends and narratives.

Solution: Tren Finance has developed an asset risk framework that allows for the rapid listing of new assets. This framework helps us quickly onboard new assets, enabling users to capitalize on trending narratives and diversify their portfolios.