DeCredit aims to empower blockchain with credit data. The credit data is the basic service that connects the individual credit investigation profile and transmits it to the chain, so as to realize the mapping of the chain contract to the user’s profile. In simple terms, the Credit Oracle is a bridge connecting the blockchain and the real world, and it supplements the off-chain credit data on the on-chain. DeCredit has created a world-leading credit strategy model through a Credit Oracle mechanism, global deployment of credit data nodes to facilitate the integration of on-chain and off-chain credit data. Through encryption algorithms and Credit Oracle mechanisms, a complete on-chain credit system will be established to empower the Web3 and DeFi ecosystems. DeCredit optimizes the allocation of resources to provide liquidity support to a wider range of entities and individuals with the goal of reducing collateral.
Defi and Web3 products nowadays are almost in over collateral mode, which means users will suffer from low fund utilization. Credit Oracle is still a barren field. DeCredit is an advocate of providing Credit Oracles. It filled the gap in the industry, empowering the whole ecology. DeCredit also hopes that users with good credit histories can get more privileges on the blockchain. DeCredit Oracle combines its credit experience and AI algorithm to blockchain, Web3 and DeFi ecosystems. DeCredit provides user’s Credit Scores to DeFi Smart Contract with Oracle, lower the TVL and thus enhance users’ fund utilization and liquidity.
Assessing credit risk in Web3 lays the framework for a new asset class of programmable creditworthiness. The first product of DeCredit is an on-chain Credit Score, which gives lenders an improved mechanism to evaluate borrower risk, and grants the users full control over their identity and pseudonymity on the blockchain. Building the infrastructure for programmable creditworthiness lays the groundwork for completely new tooling as DeCredit begins to move towards an ecosystem that designs custom and community-centric Credit Scoring mechanisms.
What is DeCredit
DeCredit is built on decentralized oracle nodes and credit data sources to bolster the Dapps in the Web3 and DeFi ecosystems. DeCredit is committed to delivering full value to users and enabling them with entire ownership of individual data including data sovereignty and equity. Moreover, DeCredit not only empowers Web3, but also fosters the Metarverse by introducing the Credit Oracle.
DeCredit’s mission is to create the world leading Credit Oracle, combining both on-chain and off-chain credit. The user could command his own credit data and make use of it to base or DeCredit Scoring Algorithms.
- Centralized Oracle: it is operated by the credit investigation and authenticated nodes. These nodes would be the direct data sources for the oracle.
- Semi- centralized Oracle: The oracle node will be extended to more third-party credit investigation agencies to build a global coordinated Oracle Credit investigation network.
- Decentralized Oracle: Distributed identity did use on-chain + off chain data feed.
Why is credit data so important to the blockchain ecosystem?
Whether it’s lending markets, decentralized insurance products, liquidity aggregators, derivatives protocols, algorithmic stablecoins or something else, the vast majority of DeFi apps and the most recent exponential growth of Web 3 systems rely heavily on oracles, middleware entities that connect smart contracts to resources outside of their native blockchains. Without oracles, blockchains are like computers without internet access – valuable but largely impotent on the connected and interoperable front. DeCredict has achieved what is often referred to as hybrid smart data credit systems, that is the combination of blockchains (immutable on-chain code) and oracles (secure off-chain data) creates a powerful synergy that sets the stage for advanced blockchain applications (e.g DeFi and Web3). Credit data Oracles enable formerly enclosed networks to consume reliable external information and interact with legacy systems, resulting in smart contracts that can react to real-world events and integrate with established business processes.
DeCredit enables to improve liquidity and security for on-chain DeFi projects and Web3 through its Credit Oracle mechanism. With the rapid development of DeFi, there are some pain points including but not limited to: limited capital utilization due to reliance over-collateral in lieu of credit guarantee, liquidation due to fluctuations in collateral value. Some pioneers tried to solve the problem with on-chain credit, however, the situation did not improve. In late 2020, AAVE launched Flash Loan, Credit Delegation, proposing a solution for unsecured lending in specific scenarios. However, due to the lack of off-chain credit information introduced, its credit loan scale is very limited. Flash Loan is only used by crypto finance developers; as of the end of that year, Credit Delegation was few authorized to validate the loan amount in DeversiFi. But Credit Oracle can empower DeFi markers by introducing off-chain credit data covering more users.
What makes the DeCredit project Unique?
The difficulty of realizing credit with Oracle lies in trusted data sources and differentiated credit algorithms.
Firstly, due to the restrictions of policies and regulations, credit data is distributed in the local credit bureaus, which means it is difficult to obtain and integrate that data. Secondly, the difference of economic level in countries leads to different asset and liability situations, so it is a complex task to develop credit algorithms that conform to characteristics of various people.
And the advantages of DeCredit is just about there. In the process of providing services for customers, DeCredit not only cooperated with credit investigation companies and developed a number of credit algorithms. After years of optimization and improvement, the reliability of our credit algorithm has been proven. Strong partnerships over the years have enabled us to link to credit bureaus in multiple countries, and they will become local authorized credit nodes. DeCredit’s Credit Algorithm Scores that information and transmits it to the blockchain.
DeCredit has created a world-leading credit strategy model through a Credit Oracle mechanism. Global deployment of credit data nodes to facilitate the integration of on-chain and off-chain credit data. Through encryption algorithms and Credit Oracle mechanisms, a complete on-chain credit system will be established to empower the Web3 and DeFi markets. DeCredit optimizes the allocation of resources to provide liquidity support to a wider range of entities and individuals.
Undoubtedly, DeCredit is not only a leading credit solutions to empower Web 3.0, but also an interface to credit data in order to bridge credit to the blockchain world. DeCredit extends to credit-based lending, with a view to using credit verification nodes and oracles to introduce off-chain credit data and provide credit scores on-chain to differentiate LTV rates. DeCredit provides the first ever hybrid credit oracle data that is built based on a combination of “on-chain and off-chain” omni-channel lending scenarios. One of the most important aspects of DeCredit is that the team has been deeply involved in the credit investigation market for many years and has a wealth of industry resources in credit investigation protocol, big data credit investigation, industrial fund, data risk control, and other areas.