ARCx ノ Profile picture
Aug 23 10 tweets 5 min read
📢 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👇…
🧠 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.
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.
An effective reputation layer in #DeFi credit represents the next major frontier of innovation. It promises material improvements in cost of capital and efficiency for creditworthy borrowers, and enables risk-based lending and the formation of credit spreads between risk profiles
🚀 What are we launching today?

Today we launching ARCx Credit, a decentralized credit market on the #Polygon network that offers dynamic maximum-LTV loans on #ETH collateral based on a borrower’s #DeFi Credit Score.

At launch, a Score of 999 will offer 100% max-LTV on ETH 📈
We are also launching 🚀 the #DeFiCreditScore, which provides a credit risk assessment for wallet addresses based on historical on-chain borrowing activity. Through these systems, borrowers will progressively unlock greater capital efficiency on their crypto-collateralized loans.
⚙️ How does it all work?

We've published an article on our Substack that explains our approach to risk and our mechanisms for managing profitability, so please read that if you are curious.👇…
But essentially, the system relies on empirical data and incentives rather than trust, is designed to avoid excessive risk exposure across the loan book, and enables monitoring and improvement in profitability/risk over time through adjusting various unique control parameters.
👋 How do I get started?

To ensure the system works as expected, we have created a waitlist which you can join now 👉🏼 We will whitelist addresses over the coming weeks and months before a wider release following an audit with Trail of Bits in October
🤔 Do you have any questions?

If you have any questions, please head over to our Discord server and chat to the team or check out our docs!


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More from @arcxmoney

Aug 28, 2020
1/ World, Meet ARC - A Synthetic Asset Game.

Composable debt is here.

The idea is simple, you can create a synthetic debt dollar from any collateral type you want via separate asset pools (i.e. a LINK pool, a RENBTC pool, etc.)…
2/ We’ll be kicking things off with LINK as the first collateral type. This means that you can use your LINK tokens to mint synthetic LINK dollars (LINKUSD). Oh and did I mention we use LINK oracles as well? #LINKMARINES
3/ There’ll be many more collateral and debt products but the end goal is to have a universe of debt products. Ultimately you’ll be able to decide which kind of product you hold and use based on the underlying risk profiles of the debt.
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