TrueFi launches crypto credit score

Thursday 10 June 2021 09:59 CET | News

US-based TrustToken, the team behind TrueFi, has launched a crypto credit score procedure to power reputation-based lending on the TrueFi platform.

The decentralised protocol is also adding USDC and USDT support, offering opportunities to lend and borrow, with starting incentives. TrueFi’s credit model represents a step towards crypto-native credit models, having successfully originated USD 100 million in unsecured loans with no defaults.

Replacing the usual DeFi requirement for posted collateral, TrueFi requires incoming borrowers to report details about company background, repayment history, operating and trading history, assets under management, and credit metrics like leverage and risk exposure.

These combined materials, along with other on-chain and off-chain data, generate a score (on a range of 0-255) for the applicant, which informs TrueFi loan terms. In future, TrueFi will also roll out lines of credit for its borrowers, which will essentially act as open-term loans to make loan processing more seamless for approved borrowers, and move towards making TrueFi credit scores usable across other protocols for various financial activities.

More: Link

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Keywords: product launch, cryptocurrency, credit scoring, blockchain
Categories: DeFi & Crypto & Web3
Countries: United States
This article is part of category

DeFi & Crypto & Web3