True DeFi
(Photo : True DeFi)

As much of the world works to understand the mechanics behind DeFi, companies like True DeFi are implementing ways to reduce the risk of DeFi investing for liquidity providers, investors and speculators. True DeFi is the first integrative continuous tax collection and distribution, or swapper contract - that can also be utilized for buying, selling and lending. Additionally, unlike most projects, True DeFi offers a referral bonus program.

What Sets True DeFi Apart From Other Swapper Contracts?

True DeFi is functionally different in a couple of ways. First, True DeFi does not store tokens, require extra liquidity or need its own decentralized exchange (DEX). True DeFi contracts simply mirror the contract functions of the project that uses them and instantly execute transactions sending the appropriate taxes to each account with every transaction. This feature removes all third-party risk involved in using swapper contracts because there is nothing to hack.

How True DeFi Reduces Risk For DeFi Projects and Investors

Generally speaking, DeFi projects offer investors ways to collect tokens and make money by facilitating trading and yield farming transactions. For example, an investor or liquidity provider purchases a 1:1 by value stake in a token/Ethereum (ETH) project. Often these investments are locked into place for an agreed upon amount of time with the promise of a cumulative return, in the same manner as buying a certificate of deposit (CD) from the bank.

As trading progresses during this time, the token project collects taxes on each transaction and stores these tokens within contracts on the chain. The stored taxes act as a reservoir of stored value until they need to be released to the investors or others as payment for their participation or services.

True DeFi has addressed the yield farming risk factor in multiple ways. The primary way that TrueDeFi has reduced yield farming risk is through the implementation of auto-staking. Yield farming rewards are received automatically in the holder's non-custodial crypto wallet. This reduces risk as yield farming is accomplished without the need to send tokens to a separate locker or staking contract to gain yield farming rewards. In addition to reducing risk, this also eliminates the cost of gas and the time in maintenance, ensuring tokens are properly staked each cycle. 

Another great challenge that plagues most DeFi projects is the way that tokenomics contracts periodically sell native tokens that have been collected in taxes. Typically, these stored tokens are sold sporadically and in large quantities, piggybacking on (and front-running) sale transactions from unique individual investors. Developers must continually maintain the rate and frequency of these contract sales to manage the negative impact on the chart as these large contract sales are executed to convert DeFi project tokens into native blockchain tokens.

True DeFi fixes maintenance-dependent price fluctuations with constant tax collection and distribution straight into reservoir contracts and wallets or liquidity provider wallets. This process takes place with every single purchase and sale transaction, meaning there is no store of project tokens in the contract that will eventually be sold in mass quantity on the chart. Additionally, new projects can also be configured to allow all transactions to occur through the True DeFi swapper contract, streamlining a continuous flow of tokens rather than waiting for a block to be filled.

This mechanism reduces risk for all parties involved because price fluctuations or volatility are significantly reduced as rewards, buybacks, dev team pay, marketing and other taxes that might be involved in a project's budget are collected on a continual basis rather than periodically. The removal of volatility creating aspects, in turn, reduces fear, uncertainty and doubt (FUD) in your token and project. 

The True DeFi Approach

In addition to creating more organic charts with reduced volatility, True DeFi has two additional benefits for projects and holders. 

A)   Purchasers are getting a higher quantity of tokens for the same purchase value when compared to traditional contract tax collection methods. This is due to the reduced price impact as taxes are collected before and not after the purchase.

B)   When comparing the same volume of buys followed by the same volume of sells, the exact same transactions result in a higher price floor when using True DeFi compared to traditional contracts. This is again related to reducing price impact, as well as eliminating large contract sales that typically trigger at the very peak of large buying windows, frontrunning other sellers and gathering the highest value out of the liquidity pool.  

Providing more tokens for each user, eliminating large sell-offs after bullish cycles and creating a higher price floor are critical pain points in DeFi that TrueDeFi has provided a solution for.

The last differentiating factor for this company is the referral program. There are two levels; an individual receives 10% of the first 30-days of swapper fees, and a lounge or launchpad affiliate receives 10% of the first 90-days of swapper fees. Contact the True DeFi team for more information!

How True DeFi Came to Be

DeFi enthusiast and coding extraordinaire Matt Cavanah believed that extracting and distributing taxes from smart contracts and then allowing them to inflate prices, leading to an inevitable bust, was inefficient. Matt assembled a team and launched True DeFi in July 2022 after having fully developed, tested, and implemented the technology on multiple live contracts to ensure its efficacy.

Matt explained, "There had to be a better way, and with True DeFi we have done just that! No more collecting tokens in the smart contract to sell; instead, we take the tax in the native chain token and divide it into the project wallets seamlessly in one transaction! The next big hurdle I felt needed to be addressed is why an investor should have to risk connecting his wallet to anything that could risk his funds. So we solved that as well when we made it possible to buy and sell by simply sending to a contract address just like you would send P2P. You can buy by sending smartchain BNB to the address, and the tokens come directly back to your wallet at market price. Then turn around and sell by sending the tokens to the same address and receive the smartchain BNB back to your wallet at market price. Making it safe, easy and secure to trade the way it should be!"

Working With True DeFi

True DeFi makes the process as painless as possible for developers. First, they check the contract to ensure implementation is possible, which most are. Next, projects are given a setup fee quote, and each contract token is built to specifications and checked for safety. After that, a dApp is built if the project lacks one - and the entire process takes 3-7 days.  

The company has already formed multiple partnerships; Matt Cavanah shared, "Ray and I have been together in this space since early 2021. We have worked as mods on a few projects where we learned the space and learned the good and bad ways to run a project. Using that info to be able to run True DeFi the way it should be!" True DeFi has also successfully reduced token price volatility for additional projects, including DeFi Kings and Disco Burn Token, and here are their takes on working with True DeFi.

DeFi Kings

"DeFi Kings has partnered with True DeFi in successfully deploying their sell-less swap technology that allows us to send rewards to our holders without the need for selling our native token and negatively impacting our chart. The swap has performed flawlessly, and our community has been impressed with its ease of use. No need to worry about adjusting gas fees or slippage. Just connect the wallet, select the amount of BNB and submit. This technology is not only good for projects but investors alike."

Disco Burn Token

"DBT has loved the new swapper since it was first created. We see this as the future of DeFi and wanted to be a pioneering token to implement this awesome technology. Thank you, True DeFi, for paving the way to the future of DeFi."

So if you are looking to make a DeFi investment, keep an eye out for projects partnered with True DeFi. And if you are launching a new project or tired of the drawdowns after a tax distribution or know someone that is, check out True DeFi's revolutionary swapper contract today! You can also find them on Telegram and Twitter.

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