Institutional Investors Eye DeFi: DWF Labs Partners with TrueFi

DWF Labs, the Web3 investment firm, is set to become the market maker for TrueFi, a leading DeFi lending platform.

This partnership, formalized through a recent governance proposal passed on July 10th, highlights the increasing maturation of the DeFi sector and the potential for traditional financial players to play a more active role in this rapidly evolving landscape.

Notably, the proposal to appoint DWF Labs as the market maker was submitted on May 27. The proposal was subsequently put to a vote on July 2 on Tally, a front-end for on-chain DAOs. As per post, the proposal received approval on July 10, officially appointing DWF Labs as the market maker for TrueFi.

Following the approval, a wallet received 7.5 million TRU, the native token of the TrueFi project, aligning with the terms outlined in the proposal. The proposal stated that DWF Labs could provide funding to the TrueFi team in the future, if needed, adding:

DWF Labs excels in dynamic prop trading, employing varied strategies in both CeFi and DeFi, including liquidity provisioning in DEXs and CEXs, cross-venue arbitrage, and HFT. We can enhance liquidity for TRU in both spot and perp markets.

Yet another X post detailed the terms of the arrangement, revealing that the 7.5 million tokens were borrowed for a period of 24 months. DWF Labs will provide a 3% annual interest yield, paid every four weeks via stablecoins Tether (USDT) and USD Coin (USDC). Additionally, the market-making target is a bid-ask spread of 35 basis points.

As a result of DWF Labs’ appointment, TRU surged by more than 10% in the past 24 hours, according to CoinMarketCap data.

As a result of DWF Labs being appointed as TrueFi market maker, TRU surged by more than 10% in the past 24 hours, according to data from CoinMarketCap.

DWF Labs and TrueFi have maintained active communication throughout the year, with DWF Labs recently announcing a series of growth initiatives. These include the debut of a new website to improve market transparency and fairness, as well as partnerships with the TON Foundation and Fireblocks.

On May 28, DWF Labs announced its MEME track fund and partnered with LADYS, FLOKI, GME, and MAGA. GALA, a project within the firm’s portfolio, is also one of the top four assets on the chain.Additionally, DWF Labs also launched a $20 million cloudbreak fund to support Web3 projects and their leaders in regions where Chinese is the primary language. The fund focuses on gaming finance (GameFi), social finance (SocialFi), memecoins, derivatives, and layer-1/layer-2 projects.