Discover and read the best of Twitter Threads about #DeFiCreditScore
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🚀 This is how you unlock 100% LTV on your ETH collateral!
Users who grow their #DeFiCreditScore through responsible borrowing will unlock greater capital efficiency. Meaning those with a credit score of 999 will have access to 100% maximum LTV loans on their collateral.
Users who grow their #DeFiCreditScore through responsible borrowing will unlock greater capital efficiency. Meaning those with a credit score of 999 will have access to 100% maximum LTV loans on their collateral.
🧠 How did we achieve this?
This is primarily achieved by mapping the #DeFiCreditScore (a value between 0 and 999) with a range of maximum LTV ratios for each vault.
This is primarily achieved by mapping the #DeFiCreditScore (a value between 0 and 999) with a range of maximum LTV ratios for each vault.
🏗 The vault design
To support this, we implemented a three-tiered vault design, with each collateral asset having three distinct vault options.
🎯 Score threshold = minimum score to access
💵 Capital efficiency = max LTV offered
💳 Credit limit = max amount of debt available
To support this, we implemented a three-tiered vault design, with each collateral asset having three distinct vault options.
🎯 Score threshold = minimum score to access
💵 Capital efficiency = max LTV offered
💳 Credit limit = max amount of debt available
📢 Introducing ARCx Credit and the #DeFiCreditScore
A reputation-based decentralized credit market for DeFi, launching on #Polygon. Build your DeFi Credit Score to borrow up to 100% LTV ratios on your ETH collateral.
Links and thread below👇
arcx.substack.com/p/introducing-…
A reputation-based decentralized credit market for DeFi, launching on #Polygon. Build your DeFi Credit Score to borrow up to 100% LTV ratios on your ETH collateral.
Links and thread below👇
arcx.substack.com/p/introducing-…
🧠 Why does this matter?
A lender’s effective and efficient evaluation of a counter-party’s credit risk, and the subsequent pricing of their overall cost of capital, is the core mechanism at the heart of global credit markets.
A lender’s effective and efficient evaluation of a counter-party’s credit risk, and the subsequent pricing of their overall cost of capital, is the core mechanism at the heart of global credit markets.
Despite the important role that reputation plays in mature financial markets, #DeFi lending has historically relied on indiscriminate mechanisms of risk management, where all borrowers are given the same terms regardless of the real or historical credit risk they represent.
