Thread by @SpectralFi

🤿Today's Deep-dive will be on the #MACROScore. How is it generated? 🤔 Let's Begin ⬇️

The #MACROScore is created by connecting either a single wallet or a bundle of wallets to Spectral’s App.

Coming soon! Follow us to stay tuned!

The App retrieves all #DeFi and non-DeFi-related transactions associated with 1 or more wallet & engineers a Score ranging from 300 (low creditworthiness), up to a max Score of 850 (high creditworthiness).

The #MACROScore is powered by a continuously updated training dataset and #MachineLearning #ML model. Here are some key stats:

There are 7 broad categories of information used to determine the Score, which cover nearly 100 features! Let's dive in:

1 - DeFi Transaction History

@SpectralFi examines who and what you’ve transacted with, the nature and volume of each transaction in terms of borrowings, repayments, and more.

2 - Liquidation History

The #MACROScore uses liquidation as a proxy for loan default. A higher appetite for risk translates into less creditworthiness or a flag for speculative behavior.

3 - Loan Safety Margin

Spectral also evaluates the amount of headroom maintained as part of your borrowing activities. The higher the historical level of #DeFi collateralization maintained, the more risk-averse a user tends to be, improving the #MACROScore.

4 - Age or Time-Based Factors

The #MACROScore also evaluates whether a user has an established and reasonably long history of #DeFi and other on-chain activities. Older wallets can usually be expected to score higher as long as they have maintained a clean credit history.

5 - General Wallet History

Factors such as wallet balance, wallet composition, and general #ERC20 and #NFT transactions can represent changing balances, and risk tolerance, and give insight into a user's on-chain behavior.

6 - Market Conditions

The #MACROScore also takes into account general market volatility prevalent at the time of borrowing activities and further factors into how they might’ve impacted liquidations.

7 - Credit Mix

The #MACROScore also considers the mix of #DeFi lending protocols a user has interacted with. Although a diversified credit mix is not required for a high Score, it's advisable to interact with a variety of #DeFi lending protocols to spread one's risk.

If you'd like to learn more about the #MACROScore and dive into the data science at play, you can read the fully fleshed out blogpost here:
blog.spectral.finance/introduction-t…