Users of the CreDA platform can now qualify for industry-leading lending rates through FilDA based on their Crypto credit score.
New York, NY, January 14, 2022 – (ACN Newswire) – CreDA (Credit DeFi Alliance), the leading decentralized credit scoring service, and FilDA, the largest DeFi lending platform ever on HECO with a peak TVL of over $2 billion, have partnered to offer rates loans exclusive to CreDA users. Users who upgrade their crypto credit score as Credit NFT (cNFT) will have access to leveraged loans and low or unsecured loans directly within the CreDA platform.
The partnership comes just months after CreDA officially launched its platform and demonstrates the value that Crypto Credit Scores can have by removing many barriers in the traditional banking and DeFi space. According to Bank of America, more than 200 million users are now part of the digital asset universe, but very few financial institutions would lend them. Even within the DeFi space, lenders are operating in an over-collateralized fashion with typical loan-to-value (LTV) ratios below 50%.
Inspired by traditional consumer credit reporting agencies, CreDA introduces the concept of personal credit scores to the $250 billion decentralized finance (DeFi) ecosystem.
Leveraging existing blockchain infrastructure, CreDA provides a trust architecture for the relatively young and volatile MetaFi ecosystem that includes emerging areas such as DeFi, GameFi, and SocialFi.
“While our core business focuses on supporting the overall ecosystem through a reliable and verifiable credit rating, ours is a new concept for this space. By partnering with FilDA, we hope to demonstrate the value and viability of the CreDA credit rating to reward both users and lenders by negotiating more transparent and trustworthy relationships,” says Fakhul Miah, new Managing Director. “We like to say that we are finally extending credit where credit is due. .”
How to Get Leveraged, Low, or No Collateral Loans
CreDA allows users to link their wallets, create credit NFT (cNFT), and borrow at industry-leading rates, all from the same platform.
CreDA provides on-chain credit ratings using CreDA Oracle, which uses artificial intelligence (AI) to examine assets, historical transactions, and user behavior in the crypto space across multiple blockchains . This data is used to calculate a credit score which is then transformed into a non-fungible secure token called credit NFT (cNFT). The cNFT allows the user to unlock preferential rates and incentives.
The FilDA partnership allows users to access leveraged loans and low or even unsecured loans based on users Crypto credit score. The score represents a user’s ability and willingness to repay loans, reduce Filda’s exposure risk, and reward the user for good on-chain behavior.
One of the main goals of CreDA is to ensure a safe and secure user experience. To achieve this, the data is fully protected, secured by industry-leading, W3C-compliant Decentralized Identifications (DIDs), which are linked to a user’s cNFT. CreDA recently underwent a strict security audit with leading blockchain security group, CertiK.
Built on the Ethereum Layer 2 network, CreDA operates on Arbitrum with developers aiming to launch on multiple chains including BSC (Binance Smart Chain), Ethereum mainnet and ESC (Elastos Sidechain) in Q1 2022 with more to follow throughout. year round.
CreDA’s Credit Oracle has already retrieved data from billions of on-chain activities linked to over 90 million addresses on the largest blockchains. This large initial data pool helps build a reliable and trusted credit model that will continue to improve as more data is collected from additional channels and users who log on and build their credit scores. The CreDA protocol is designed to calculate a user’s crypto credit score while protecting their identity through the use of a DID, which removes KYC (know your customer) checks.
The goal of the CreDA protocol is to ultimately combine traditional (off-chain) and blockchain (on-chain) data to calculate a holistic user credit score that allows for more flexibility and access between virtual and “real” life. ” people. This will become even more relevant as technology advances and society continues to embrace virtual spaces, such as the Metaverse.
“As Benjamin Franklin once said, ‘If you want to know the value of money, try to borrow it!’ said Cassie Zhang, chief operating officer when CreDA launched in late 2021.
“The DeFi landscape is changing rapidly, but one factor is still missing: credibility. The CreDA protocol allows DeFi and other Web 3 platforms to model the risk profiles of their user base and offer rates and personalized services, which makes them more competitive compared to industry peers.”
CreDA (Credit DeFi Alliance)
E-mail: [email protected]
THE SOURCE: CreDA