{"id":474223,"date":"2022-07-15T09:03:13","date_gmt":"2022-07-15T06:03:13","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/cred-protocol-unveils-its-first-decentralized-credit-scores\/"},"modified":"2022-07-15T09:03:13","modified_gmt":"2022-07-15T06:03:13","slug":"cred-protocol-unveils-its-first-decentralized-credit-scores","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/cred-protocol-unveils-its-first-decentralized-credit-scores\/","title":{"rendered":"# Cred Protocol unveils its first decentralized credit scores"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a231b711537f\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a231b711537f\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/cred-protocol-unveils-its-first-decentralized-credit-scores\/#%E2%80%9D_Cred_Protocol_unveils_its_first_decentralized_credit_scores_%E2%80%9C\" >&#8221; Cred Protocol unveils its first decentralized credit scores &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Cred_Protocol_unveils_its_first_decentralized_credit_scores_%E2%80%9C\"><\/span>&#8221; Cred Protocol unveils its first decentralized credit scores &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-28d77a7a>Cred Protocol, a decentralized credit scoring startup has unveiled the results of its first automated credit scoring system for users of decentralized finance (DeFi).<\/p>\n<p>Cred Protocol CEO Julian Gay outlined the results in a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> thread, which showed how Cred successfully utilized past transaction behavior on the Aave protocol to assess the creditworthiness of future borrowers based on on-chain behavior in the DeFi space.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">1\/ Over the last few months, we&#8217;ve been working to build one of the first credit scores for DeFi.<\/p>\n<p>Today, we&#8217;re excited to share the results of our first credit score with the world! <\/p>\n<p>Read more below <\/p>\n<p>\u2014 Julian Gay (@juliangay) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/juliangay\/status\/1547662040788914176?ref_src=twsrc%5Etfw\">July 14, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\nBy using machine learning to assess time-based account attributes and analyze the user\u2019s past transaction behavior, Cred Protocol generates a health factor score that predicts the likelihood of future liquidation for a single address, which, according to Gay, was one of the strongest baseline creditworthiness predictors. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-07\/f573aa5b-c9a2-4619-8c39-c3832a31f744.jpeg\"><figcaption style=\"text-align: center;\"><em>Julian Gay Twitter Post\u00a0<\/em><\/figcaption><\/figure>\n<p>Cred Protocol claims to make decentralized finance more accessible to the world by implementing trustworthy credit scores that would see \u201canyone with an internet connection\u201d and \u201ca good financial reputation\u201d gain access to loans. <\/p>\n<p>Where borrowers and lenders have their loan worthiness assessed by a central authority such as a credit bureau, DeFi makes it possible to run financial services with a peer-to-peer (P2P) system, eliminating the idea of an intermediary or central authority.<\/p>\n<p>Prominent DeFi researcher Chris Blec raised concerns that a borrower could use multiple Ethereum addresses to skirt credit scoring \u2014 to which Gay responded that a potential solution was in Beta.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">So it&#8217;s just a credit score for that 1 Ethereum address? What if someone uses 10 different addresses?<\/p>\n<p>\u2014 Chris Blec (@ChrisBlec) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/ChrisBlec\/status\/1547746195153375234?ref_src=twsrc%5Etfw\">July 15, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Cred Protocol is a small nine-person team based out of San Francisco with additional \u201chubs\u201d in New York and London. However, Gay says that he aims to bring DeFi <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> to more than one billion people. <\/p>\n<p>In a Medium post, Cred <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/credprotocol.medium.com\/cred-protocol-building-a-decentralized-credit-score-9e1bde1d2b48\">outlined<\/a> its plans to grow from the Aave protocol and expand its data analysis to other lending protocols like Compound and MakerDAO.<\/p>\n<p>Two years ago, blockchain lending protocol Teller raised $1 million in a seed funding round to incorporate traditional credit scores into DeFi. <\/p>\n<p><strong>Related: <\/strong><strong>Decentralized credit scores: How can blockchain tech change ratings<\/strong><\/p>\n<p>In November 2021, Credit DeFi Alliance (CreDA) officially <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.globenewswire.com\/news-release\/2021\/11\/25\/2341056\/0\/en\/New-DeFI-platform-CreDA-looks-to-de-risk-the-world-of-crypto.html\">launched<\/a> a credit rating service that would ascertain a user\u2019s creditworthiness with data from multiple blockchains. CreDA was developed to work using the CreDA Oracle by evaluating records  of past transactions carried out by the user across several blockchains  with the help of artificial intelligence (AI).<\/p>\n<p>Recently, P2P lending protocol RociFi labs <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.businesswire.com\/news\/home\/20220412005114\/en\/RociFi-Raises-2.7-Million-in-Seed-Funding-to-Lend-Money-to-Anonymous-Users-in-DeFi\">concluded<\/a> a seed funding of $2.7 million in partnership with asset management firm GoldenTree, which is aimed toward expanding on-chain credit ratings for decentralized finance.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/cred-protocol-unveils-its-first-decentralized-credit-scores\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Cred Protocol unveils its first decentralized credit scores &#8220; Cred Protocol, a decentralized credit scoring startup has unveiled the results of its first automated credit scoring system for users of decentralized finance (DeFi). Cred Protocol CEO Julian Gay outlined the results in a Twitter thread, which showed how Cred successfully utilized past transaction behavior&#8230;<\/p>\n","protected":false},"author":1,"featured_media":474224,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDcvYjU2ZDk0OGUtYmRmZi00OTlhLTk5YWQtM2E0ZjBmYjBkYjQyLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[92664,126890,74868,77595,76700,95118,90109,74355],"class_list":["post-474223","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-aave","tag-compound","tag-defi","tag-lending","tag-makerdao","tag-nft","tag-peer-to-peer-lending","tag-adoption"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/474223","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=474223"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/474223\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/474224"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=474223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=474223"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=474223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}