This crypto firm wants to use DeFi loans to fund its trades

Alameda Research, one of the largest crypto trading companies, funds DeFi loans as part of its daily trading activities.

A major crypto company trades about $ 5 billion worth of crypto every day and has revealed that it will borrow $ 750 million annually from TrueFi and Maple Finance.

Alameda Research uses DeFi loan for transactions

Alameda Research is one of the crypto companies founded by Sam Bankman Fried of FTX A major trader on the exchange. He was also one of the leading investors in TrueFi’s parent company TrustToken’s $ 12.5 million funding round.

DeFi platforms like TrueFi were built to solve one of the many problems faced by crypto traders: access to funds.

Due to the volatile nature of the industry and the anonymity cloak that surrounds players in the space, traditional financial institutions rarely provide access to funding.

This left a gap in the crypto industry that TrueFi is trying to fill with many others.

According to Alameda’s top executive Sam Trabucco, before adding that DeFi borrowing is also an important part of the balance sheet, the company has already revealed that it is using DeFi to make double-digit percentages of transactions. did.

Trabuco also said the company plans to use all major DeFi platforms.

DeFi growth reflects growth in the crypto industry

recently, The crypto industry has reboundedAnd it can be seen in the number of DeFi platforms that have recently shown impressive performance.

according to data According to DeFillama, the total amount of assets trapped in space is currently $ 210 billion. EthereumA pack-leading base platform.

From 2020 to the present, TVL has increased from $ 20 billion to over $ 200 billion. This is a significant increase given the level of recruitment this space has seen over the past year.

Other blockchain networks like Terra, Solana, BNB chain, avalanche, And others have played a major role in the growth of the universe. For example, Terra has a TVL. Now worth well over $ 20 billion..

However, according to recent reports, most of the growth is due to the rising value of tokens, especially ETH. According to the report, the growth of other blockchains also contributes significantly to the growth seen in space.

There is no arguing that DeFi has room for growth, but current political tensions around the world do well show that the crypto industry generally plays a role in helping people reach their goals of economic freedom. I am.