RociFi: On-chain credit scores for capital efficient lending on XDC

Christopher Brookins — Wed, 21 Jun 2023 19:40:48 +0000

Submission date: June 21, 2023

TL;DR:

Temperature check for deploying to XDC based upon user demand for on-chain credit scores that enable higher loan-to-value ratio loan terms (with the possibility for under-collateralized credit lines in the future).

About RociFi

RociFi is a DeFi protocol enabling highly capital efficient lending markets via on-chain credit scores powered by machine learning.

To-date, RociFi has served 811,952 credit scores via our API, issued 38,200 soulbound credit credential NFTs, and facilitated 5445 capital efficient loans (1600 under-collateralized) with an average 6% APY real yield offered to depositors with 98,8% repayment rate.

RociFi lending protocol is live on Polygon and zkSync with plans to deploy to others by year-end 2023. We're particularly interested in chains that have unique value propositions, e.g. Trade Finance, that can benefit from our core competencies of on-chain credit scores and capital efficient credit lines.

For reference: Scores are calculated using on-chain transactional and DeFi protocols usage data across most popular EVM-compatible chains.

Deep Dive into RociFi Scoring Semantics, with examples of how various addresses are scored: https://blog.roci.fi/semantics-of-rocifi-scoring-6d8ccab1cc06

Motivation:

DeFi is lacking real-world credit applications because of insufficient capital efficiency, i.e. over-collateralization. RociFi is building the foundation to solve this issue by creating on-chain credit scores derived entirely from a user or institutions blockchain transaction history. This can further be combined with inherent efficiencies of blockchain technology, i.e. tokenization of real-world assets for trade finance, can be the first step in helping DeFi to tap into mainstream credit markets.

However, given we're newcomers to the XDC ecosystem, the last thing we want to do is build something there is no demand for. So, please voice your preference for either (1) on-chain credit scores (2) capital efficient lending markets coming to XDC.

Key terms

Credit scores: numerical scores representing a user's (wallet address) creditworthiness and trustworthiness based upon their on-chain transaction history. The scale is 1 to 10 with 1 being the lowest risk (best score) and 10 being the highest risk (worst score). The scores are calculated looking at numerous DeFi protocols across 9 blockchains.

Conclusion

We are open to feedback or questions regarding the temp check, so please comment! Thanks!

Developers Forum for XinFin XDC Network: Christopher Brookins

RociFi: On-chain credit scores for capital efficient lending on XDC