Nov 23, 2021
Credit Scoring In Crypto and DeFi Compared to TradFi (Webinar Replay)
Last week we kicked off the Clearpool Webinar Series with “Credit Scoring in Crypto and DeFi Compared to TradFi — Differences, Opportunities, Challenges” as our inaugural webinar.
The Clearpool Webinar Series provides a chance for the Clearpool community to get to know the Clearpool team, Clearpool’s partners and investors, and learn more about the Clearpool protocol product.
The 1st Edition of the Clearpool Webinar Series included experts from the DeFi Credit space:
- Xiao Xiao (Investment Director, HashKey Capital)
- Evgeny Gaevoy (CEO, Wintermute)
- Darshan Vaidya (CEO, X-Margin)
- Robert Alcorn (CEO, Clearpool)
Credit Scoring in Crypto and DeFi Compared to TradFi — Differences, Opportunities, Challenges Webinar Overview
Credit scoring in DeFi is one piece of the puzzle to unlock unsecured loans in DeFi. When loans are unsecured, the lender takes on credit risk. Credit risk is the risk that the borrower will not repay the loan.
Unsecured lending is commonplace in traditional markets, and there are many ways of measuring and managing that risk; but in DeFi, unsecured lending is relatively new.
As unsecured lending comes to DeFi, it’s essential to give lenders the ability to measure and manage credit risk, and X-Margin is the leading project in this space.
X-Margin is a platform that facilitates credit; as of now, it facilitates credit to trading firms. X-Margin does this by calculating the trading firm’s risk and creditworthiness by looking at several factors, such as a borrower’s market exposure across all the different venues they trade across. Moreover, X-Margins does this in a provably private and neutral way using zero-knowledge technology to compute a trading firm’s risk without needing to see the underlying data themselves; they then produce proofs and attestations that verify the accuracy and privacy of those computations.
“Basically we’ve become a neutral oracle of a trading firms risk to be able to attest to their credit worthiness to enable credit to be extended based on those metrics.” — Darshan Vaidya, CEO, X-Margin
Related Post: X-Margin and Clearpool Partner to Bring Transparent Lending to Institutions Trading Digital Assets
Evgeny from Wintermute, one of the largest market makers in the crypto space, transacting over $8 Billion daily across all kinds of exchanges. “We’ve been growing over the past few years, powered predominantly by unsecured lending.”
Xiao Xiao from HashKey Capital sees an evident trend of institutions coming to DeFi.
If you missed the event, or want a refresh of the conversation, below is a full replay of the webinar.
Watch to learn how the idea for X-Margin was born and their founding story. How credit is provided in traditional markets and what the difference is in DeFi. How X-Margin is making credit more permissionless, open, and competitive. Plus much more, watch now on Youtube: Credit Scoring in Crypto & DeFi Compared to TradFi: Differences, Opportunities, Challenges
About HashKey Capital
HashKey Capital both builds and invests in world-class financial technology. Notable investments include Polkadot, Blockfolio, Blockstack, and BlockFi.
A few stats about HashKey Capital:
- 550+ opportunities evaluated per year
- 93 Portfolio Companies
- 14 Countries and Regions
For more information about HashKey Capital, visit HashKey Capital.
About Wintermute
Wintermute is a leading global algorithmic market maker in digital assets to enhance liquidity with cumulative trading volume in billions (USD).
Wintermute provides liquidity to some exchanges you may know, such as, Binance, Huobi, Coinbase, Kraken, FTX, Bitfinex, Bitstamp, Uniswap, DYDX and more.
For more information about Wintermute, visit www.wintermute.com
About X-Margin
X-Margin Credit enables data-driven lending for institutional capital.
X-Margin has developed a privacy-preserving risk engine for institutions to access trading leverage and for lenders to have real-time risk monitoring without borrowers needing to reveal commercially sensitive information.
X-Margin Credit currently monitors $2.4 billion of borrowers’ net trading positions. In September, X-Margin raised $8 million in a Series A funding round backed by leading digital asset investors and the industry’s most active trading institutions such as Coinbase Ventures, DCG, HashKey Capital, Polychain, and Spartan Group.
For more information on X-Margin and its technologies, please visit www.xmargin.io
About Clearpool
Clearpool is a decentralized capital markets ecosystem where institutional borrowers can access unsecured liquidity and where liquidity providers can earn attractive risk-adjusted returns.
The first decentralized dynamic marketplace for unsecured liquidity, where supply and demand always ensure each pool reaches a state of equilibrium in terms of size and interest rate.
A paradigm shift in how institutions borrow uncollateralized liquidity is upon us.
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