Telefy Introduces the Tele Score API to Calculate Creditworthiness of Crypto Wallets
As the crypto industry is growing, it is drawing many new investors. The latest innovations within the crypto space are making it easier to trade cryptos. Decentralized Finance or DeFi is one of the recent innovations that have taken the crypto space by storm.
Being a fast-growing sector in the crypto industry, DeFi provides various solutions to investors and other crypto users. DeFi lending is one of those solutions people use to lend coins and gain profit in terms of interest.
Many people have staked coins for lending purposes. However, inappropriate interest rates are troubling most borrowers. High-interest rates occur because there is no information regarding the creditworthiness of users.
Telefy has come up with an innovative solution to associate the Tele Score (credit score) with cryptocurrency wallets. It will help users to lend or borrow a crypto loan with a fair interest rate!
What is the Tele Score?
The Tele Score is like a credit score that defines the creditworthiness of a crypto wallet. If a wallet gets a high score, potential lenders will find it pretty lucrative. Crypto lenders also like to assess the borrower’s ability to repay the loan.
There was no other way of assessing this factor before the Tele Score. Now, Telefy is offering comprehensive support to eliminate the risk and set the right interest rate! This platform assesses the amount of token held in the wallet along with the previous transactions to assign the Tele Score.
What is the Tele Score API?
The Tele Score API is quite similar to Infura. It provides a suite of tools to assess the credit score of cryptocurrency wallets. Telefy is working to offer a highly sophisticated solution that is available for all decentralized finance platforms. It will be the most generic API that will calculate the Tele score.
Platforms like DEX and CEX exchanges will use this API to reveal the creditworthiness of any chosen wallet. So, whenever a user tries to take benefits of DeFi’s lending protocol, the Tele score will reveal whether the lender can take the risk or not!
The TELE Score API will assess the some of the below parameters to calculate the Tele score of crypto wallets:
The number of transactions
The API will check how many transactions have been made with a selected wallet to assess whether it’s active or not. If the user frequently trades the cryptocurrency, its chances of getting a good credit score are high.
Wallet balance
The Tele Score API can also assess the wallet balance to determine its value. If the wallet owner has not invested in too many crypto assets, the balance will be pretty low. Many lenders would not prefer such a user to lend valuable crypto assets. A wallet with a history of holding and trading a good crypto volume is more lucrative!
Holdings
The API can also find out how long the user has held coins to determine its Tele score. If the wallet has held cryptos for prolonged periods, it will gain a pretty impressive credit score. Wallets that do not hold a considerable amount of cryptos for prolonged periods might not gain the top score.
Telefy protocol usage
If crypto users use the Telefy protocol and DeFi solutions offered on this platform, they can gain an extra score. It’s one of the most important parameters the Tele Score API will assess while associating credit scores to crypto wallets.
NFT transactions
NFTs or non-fungible tokens have drawn thousands of new users to the crypto space. Wallets used to invest in NFTs and trade non-fungible tokens can gain a higher Tele Score through the API. Users with no NFT investments might not be among the top wallets with a great credit score.
The length of credit history
The Telefy Tele Score API will assess the length of credit history of wallets to associate the right score. It will assess how recently added accounts have been associated with the wallet to determine its creditworthiness!
The Tele Score API will also consider collateralized liquidation history and cross-chain wallet transactions to assign the right credit score. Essentially, this API is going to eliminate all the risks of associating a wrong credit score to crypto wallets. Therefore, many decentralized finance platforms with lending pools will incorporate this API into their system!
Multi-chain solutions
Telefy is going to offer the Tele Score API on many famous blockchains, such as Binance, Ethereum, Matic, Solana, Polka Dot, Cardano, and so on. This platform is committed to helping DeFis determine the right credit score with the right interest rate! Now, all decentralized finance platforms can spot risky wallets before lending cryptos.
Users willing to prove their creditworthiness can invest in the TELE token and stake it to increase their credit score. It’s the simplest way to maintain a good credit score of the crypto wallet. So, many cryptocurrency investors are going to try this tactic.
