DeFi’s critical missing piece: Credit scores
Traditional finance is built not on collateral but on reputation, and DeFi will grow by following suit. Over the last 12 months, the remarkable growth in decentralized finance has been driven by one thing: the ability of users to earn strong yields on their crypto assets by lending, staking and providing liquidity. Depending on your risk appetite, gains from DeFi investments can run tens or even hundreds of times higher than standard returns in the traditional markets.Even if those kinds of yields don’t last forever, DeFi offers significant promise to transform the financial markets in the....
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A credit score is a statistical value or number that helps the lending parties evaluate their customer’s creditworthiness based on their previous credit history and repayment. Zoracles developed an on-chain solution called Zora Score to calculate an Ethereum wallet’s creditworthiness based on factors including the age of wallet, DeFi activity and loan repayment. Credit scores […]
Borrowing and lending are two important parts of DeFi, but they have been missing an effective operating credential: a decentralized credit rating. The concept of lending and borrowing is as old as time itself. Regarding finances, while some individuals have more than enough for themselves, others barely have enough to get by. As long as there is this imbalance in finance distribution, there will always be a need to borrow and a desire to lend.Lending involves giving out a resource on credit with the condition of it being returned upon an agreed period of time. In this case, such resources....
Releasing the results of its first credit score on the Aave Protocol, a decentralized credit scoring mechanism called Cred Protocol is set to expand to Compound and MakerDAO. Cred Protocol, a decentralized credit scoring startup has unveiled the results of its first automated credit scoring system for users of decentralized finance (DeFi).Cred Protocol CEO Julian Gay outlined the results in a Twitter thread, which showed how Cred successfully utilized past transaction behavior on the Aave protocol to assess the creditworthiness of future borrowers based on on-chain behavior in the DeFi....
In a recent report, Cred Protocol just disclosed its first credit scores for decentralized finance users. The protocol is a decentralized credit scoring startup based on the Aave Protocol. Cred Protocol is headquartered in San Francisco and runs with a team of 9 personnel. The firm operates with part of the goal of making decentralized […]
Litecoin users with iOS devices finally have a server-free SPV wallet to call their own, with the release of LoafWallet on the App Store. Although Android users have used the standard Litecoin Wallet app for years, there has never been a widely-used mobile option for iOS. Hive wallet supported LTC sending and receiving, but required central servers. LoafWallet is based on the popular Bread Wallet for bitcoin, made by developer Aaron Voisine. It is designed to be simple and lightweight, and the code is open source. An Android version is also on the way. Loshan T, Lead Developer of the....