EasyFi Integrates Multi-chain Credit Rating System

Roadmap to Uncollateralized and Unsecured DeFi Lending

We believe the decentralized identity layer is finally mature enough to enable the next phase of development in DeFi. In our previous related blog post we explained, in brief, about our approach to achieve under collateralization & non-collateralization in ever expanding DeFi lending markets.

Here’s a reiteration of our plans in two parts — highlighting the completion of two roadmap deliverables in one go.

Part 1: Integration of Credit Rating System & Borrower’s Evaluation Mechanism

Our Approach

In the past, self-sovereign identity platforms have tried to create standards to improve the collateralization ratios through the implementation of social risk distribution, Zero-knowledge proofs, and Credit DAO’s but have thus far had little traction.

At EasyFi we plan to tackle this by enabling under collateralized loans using individual credit scoring built by TrustScore (a product of Koinfox.com). More details on Koinfox TrustScore can be read here.

EasyFi through TrustScore empowers a user to whitelist an ERC20 address for assessing DeFi as a market. Activities such as supplying assets, borrowing assets, repaying, defaulting (liquidation by LPs) are done through the very whitelisted ERC20 address which produces a standardized Credit Score (Similar to Experian, CIBIL).

This credit score measures credibility of whitelisted addresses making it attractive, depending upon achieved score, for users to avail loan every time at less collateralization ratio and a step closer to unsecured loan.

Proof of Reputation — Blockchain based Reputation Provenance

TrustScore is built upon a series of interconnected Smart Contracts, that enables on-chain credit scoring & on-chain storage on blockchain networks to avoid any biases or fraudulent activity around calculation of user’s performance for the specific set of transactions for the whitelisted addresses.

Proof of reputation (POR) contracts, closely knitted, can be termed as decentralized ledger of reputation that can inculcate cross-chain user activity over a period of time to arrive at a measurable unit of user behaviour.

POR ledger indicates credibility of the individuals based on his past borrowing and repay transactions. POR contracts can be deployed multi-chain to ascertain the TrustScore over a single point of collection. For instance, user may have used a whitelisted ERC-20 address for lending and borrowing on EasyFi over matic network and same address on Compound Finance on Ethereum mainchain; the TrustScore so ascertained shall reflect all activities on EasyFi & Compound Finance for both Ethereum and Matic Network.

POR is essentially a universal cross chain decentralized ledger of reputation that helps DeFi users reap benefits of their good financial behaviour over time by monetizing it. POR not only helps in cross-chain reputation aggregation but opens a great deal of innovation in lending markets, particularly.

EasyFi integrates POR contracts

As a first step to achieve the ambitious goal of non-collateralization in DeFi, EasyFi has now integrated POR contracts and initiated comprehensive time bound testing to ascertain & analyze desired results. The exercise involves cohesive data testing & time testing in a controlled environment on multiple chains and released as a single module.

We have planned a phase-wise release of TrustScore to start with basic functionalities on a single chain. More tools & features shall be added by the time and TrustScore shall be released on multiple blockchain networks to cope up credit scoring demand.

We look forward to integrating TrustScore with other lending platforms on ethereum mainchain & other sidechains and Layer-2 lending platforms so as to create user experience at par with the traditional lending industry and even better.

TrustScore Contract

Part 2: Universal Multi-chain Credit Rating Generation System

Integration & Testing TrustScore on multiple chains

As per our roadmap we had two closely related milestones to be achieved this quarter. As a matter of fact we integrated and tested POR contracts on both Ethereum and Matic Networks. Therefore, we are equipped enough to move further in our journey to achieve desired goals.

Here are few images to reflect the progress on this front:

We have now successfully integrated the POR contracts in our protocol and are currently undergoing comprehensive testing of our credit rating generation system (CRGS) on two different chains right now — Matic Network and Ethereum Network. We have since completed initial test runs on the Mumbai Testnet of Matic Network for our credit rating mechanism.

Hence, we will be first going live with the CRGS on Matic Network and then move to Ethereum.

We are in talks with other chains as well to integrate our system with them and are hoping we will be able to induct new partners.

Next Steps

• Data Aggregation

In the quest for continuous improvement of our data model that would enhance algorithms on which TrustScore runs, we need to identify data points and inculcate methodologies to ascertain & analyze for desired behaviour. These data points may be identified off-chain or on-chain. Also, we may need to expand our observatory horizon to traditional finance too. These data points need to be aggregated while maintaining a balance with the user’s privacy ( it’s DeFi after all), to generate a comprehensive score for every user who intends to access the service.

• Potential Partnerships

Setting up a decentralized identity layer solution is a daunting and time consuming task. A proper solution ought to act as the backbone of a newly evolving financial system therefore requires a collaborative approach. To establish such a magnanimous system of universal credit scoring, EasyFi intends to keep looking for appropriate partners with common synergies so as to achieve twin objectives of constant improvement of algorithm and wider acceptance of TrustScore in the DeFi space for money markets. We have integrated and are testing TrustScore on Ethereum & Matic chains, and are in talks with other blockchain networks. We are also aggressively hunting for potential partnerships with other protocols, platforms for this purpose.

To learn more about $EASY and EasyFi, please go through our whitepaper and other articles on this publication.

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