How Does TruStake Work?

Liquid Staking|Risk B-|6 mechanisms|4 interactions

TruStake by TruFin is an institutional-grade liquid staking platform that allows users to stake tokens across multiple Proof-of-Stake blockchains including Polygon, Injective, NEAR, Aptos, and Solana. When you deposit tokens, you receive liquid staking receipts (like TruPOL) that represent your staked position and accumulate rewards over time. The platform requires KYC/AML verification, targeting institutional investors who need compliance-ready staking. TruStake features auto-compounding rewards and is backed by partnerships with Nomura-backed Laser Digital.

TVL

$7M

Sector

Liquid Staking

Risk Grade

B-

Value Grade

D+

Core Mechanisms

3.4.2

Reward-bearing LSTs (TruPOL, TruMATIC, etc.) for institutional staking across 5+ PoS chains

Users deposit native tokens and receive reward-bearing LSTs. Supports POL, Injective, NEAR, Aptos, and Solana. Institutional-grade with KYC/AML requirements.

3.3.1

Protocol-selected validator delegation with institutional-grade due diligence

TruFin selects validators for delegation based on institutional standards. Users do not directly choose validators.

3.3.3

Auto-compounding via deposit piggybacks and threshold-based restaking

Two restaking mechanisms: deposit piggybacks add unstaked balance to new deposits, and automatic restaking triggers when threshold is reached.

2.1.2

Performance fee on staking rewards taken by TruFin as protocol revenue

TruFin charges a performance fee on staking rewards before distributing to LST holders.

5.4.1

Multisig-controlled upgradeable proxy contracts with auditor co-sign requirement

Smart contracts use upgradeable proxies controlled by owner multisig and auditor multisig.

7.3.1

Novel

Custom rewards allocation feature for institutional Polygon staking

Unique to TruFin: custom-built rewards allocation for institutional clients. Allows tailored reward distribution structures.

How the Pieces Interact

Permissioned KYC-gated accessCentralized validator selectionHigh

The combination of KYC gating and centralized validator selection creates a fully centralized trust model. If TruFin team is compromised, all depositors are affected with no ability to redirect delegation.

Multi-chain stakingVariable unstaking periodsMedium

Different chains have vastly different unstaking windows (2 days for POL vs 21 days for Injective). During market stress, users on chains with long periods are trapped.

Upgradeable proxy contractsAuto-compounding mechanismMedium

Upgradeable contracts mean auto-compounding logic can be changed. A malicious upgrade could redirect restaked rewards or alter threshold parameters.

LST tokens (TruPOL etc.)Limited DeFi composabilityMedium

Institutional KYC requirements limit DeFi composability of TruFin LSTs. This restricts secondary market liquidity, making LSTs harder to sell in emergencies.

What Could Go Wrong

  1. Institutional-focused permissioned environment (KYC/AML gated) creates a centralized trust dependency; access control and vault operations are managed by TruFin team
  2. Multi-chain staking across Polygon, Injective, NEAR, Aptos, and Solana each with different unstaking periods (2-21 days) creates operational complexity and chain-specific risk
  3. No native governance token means protocol parameters and validator selection are entirely controlled by the TruFin team with limited decentralization

Institutional Trust Failure

Tail

Trigger: TruFin team compromise or operational failure leads to loss of staked funds or unauthorized contract upgrades

  1. 1.TruFin team member or key is compromised Attacker gains access to multisig or upgrade mechanism
  2. 2.Malicious contract upgrade redirects staking rewards or principal Institutional depositors discover unauthorized changes
  3. 3.Institutional clients initiate mass withdrawal Unstaking queues overwhelmed across multiple chains
  4. 4.Reputational damage spreads to partner institutions Broader institutional confidence in DeFi staking damaged

Risk Profile at a Glance

Mechanism Novelty2/15
Interaction Severity4/20
Oracle Surface3/10
Documentation Gaps3/10
Track Record10/15
Scale Exposure0/10
Regulatory Risk3/10
Vitality Risk8/10
B-

Overall: B- (33/100)

Lower score = safer

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