Why Are Credit Scores So Important?
October 22nd, 2024
The graph below illustrates that our credit score effectively predicts the likelihood of liquidation.
Low Score: Wallets with a low score face up to 47% chance of liquidation, akin to a coin toss.
High Score: Customers with high scores have a probability of liquidation as low as 4.2%. These are ideal candidates for undercollateralized or even unsecured loans, depending on each lender's appetite for risk.
Without a credit scoring system in on-chain lending, 16% of users would have at least one liquidation event, often more. Our goal is to ensure users retain their collateral while allowing lenders to remain profitable.
Talk to us to enquire about the statistical mechanics of our score suite.