Crypto Credit Score allows differentiating between the good borrowers and not so good borrowers.
Practically most of the crypto lending platforms are not using credit scores. The result of this is that every loan has to be treated as a potentially non-performing loan, where the borrower will not do his payments and borrowers’ collateral will get liquidated.
Adding Crypto Credit Score would enable additional features to the crypto lending platforms. The good borrowers would get better borrower conditions, and the not so good borrowers would have to pay higher interest and to use more crypto collateral.
SmartCredit.io has implemented a Credit Score based on blockchain analytics, social media analysis, and psychometric analysis. Traditional banking uses Credit Score models, which are based on the inflows and outflows of the funds – they use only hard facts based Credit Scores. SmartCredit.io view, however, is that the key parameter for the Credit Score is the borrower’s behavior, especially the willingness to pay.
SmartCredit.io’s vision is to create a self-reinforcing DeFi lending platform. The first version of our non-custodial crypto lending platform available in the Ethereum main-net: https://app.smartcredit.io.