Wing Unveiled as the First Credit-Based DeFi Lending Platform on Ontology
Wing is an initiative that supports the construction of new blockchain products at the intersection of Decentralized Finance (DeFi) and Decentralized Identity (DeID). When launching these products, Wing also takes to further decentralized social governance and autonomy.
The majority of DeFi platforms today rely on the over-collateralization of assets to function. This limits the potential for DeFi as it caps its use cases to those where users have such assets to collateralize. For DeFi to reach its full potential as a truly financially inclusive revolution, it will have to evolve to provide financial services without the need for over-collateration. Recognizing the need for this evolution, Wing is launching a decentralized autonomous organization (DAO) initiative called the Wing DAO to galvanize the blockchain community around building the first credit-based DeFi platform on Ontology.
Wing’s Vision for Credit-Based DeFi Project
Wing has designed and is building a DeFi platform dedicated to the digital asset lending market, supporting cross-chain collaborative interaction between various DeFi products. Wing’s decentralized governance model and risk control mechanism intend to promote a mutually beneficial relationship between borrowers, creditors, and guarantors. In addition, Wing innovatively showcases a credit evaluation module as a strong example of credit-based DeFi.
Wing has mapped out a blueprint outlining how it will grow in the following areas:
1. Introducing new types of collateral
Wing will add a variety of collateral types to its platform, and work to expand the digitalized collateral types for multiple assets
2. Incorporating the element of decentralized credit
Wing is planning to integrate self-sovereign credit scores into the design of its financial products so that the user’s data and credit can be of value in helping the user to acquire financial services.
3. Enlarging Wing’s decentralized autonomous organization for financial services (Wing DAO)
Wing DAO encourages community members to spontaneously put forward proposals for decentralized financial services. The community has the power to make independent decisions on product launches based on community participation and is autonomous in product application rules, and the termination and cancellation of products.
Why work with the Ontology blockchain?
In order to design a truly innovative DeFi product, the infrastructure chain has chosen to launch on needs to be equipped with two vital components:
First, a wide range of collateral types needs to be supported.
Ontology is capable of building a collateral pool composed of digital assets from a range of different blockchains through cross-chain support via its collaboration with Poly Network. Ontology also offers decentralized identity and data protocols to allow the digitization and authentication of new and existing types of digital assets. New potential collateral types range from simple non-fungible tokens (NFTs) to more complicated tokenized real estate and other real-world assets that require a mix of verifiable ownership records and attribute descriptions to properly digitize.
Second, the infrastructure chain needs to be armed with a decentralized and automated credit evaluation system based on smart contracts.
Ontology’s decentralized identity (ONT ID) and decentralized data (DDXF) protocols support self-sovereign identity and data management verification and are capable of implementing the actions of automated credit data verification and credit evaluation utilizing smart contracts.
In addition, Ontology also launched a credit scoring system, OScore, which is based on users’ digital asset information and lending/borrowing history. Users hold self-sovereign ownership of their accounts and can generate their OScore in such a way where their data privacy is under their control. OScore will prove an important tool for the design and execution of credit-based DeFi products.
Expected Progress and Timeline
Wing is expected to release the first edition of its project whitepaper on September 1, 2020, and to design and launch the first service pool of products based on the WING token soon after. In the following days after launch, Wing will support the community in bringing up more independent proposals for new financial service pools.
A credit-based DeFi system reveals a much-needed direction for exploring decentralized trust. We are more than glad to witness that Ontology, a blockchain project specializing in decentralized identity and data, has embarked on this path for a while and encourages innovative projects from the community in this direction. We are honored to receive coaching and support from Ontology’s official technical team in framework design and technology development. Meanwhile, we are eager to onboard new and existing members of the blockchain community to join Wing DAO and explore this new world.
Visit wing.finance to follow Wing’s progress.
