Cred Protocol

Cred Protocol is a decentralized credit score. A financial primitive that enables web3 smart contracts to make better risk-based decisions. In traditional finance, under-collateralized consumer lending is a $4.5T market but it’s not happening in DeFi, yet. The missing component is the “quantification of risk at scale” embodied as a “credit score”. That’s what we’re building at Cred Protocol. “Lending” is one of the biggest applications of Decentralized Finance (DeFi) with $40B of loans being serviced by the top three lending protocols; Aave, Compound, MakerDAO (on the Ethereum blockchain). Most DeFi lending is over-collateralized, which has the benefit of reducing systemic default risk at the expense of capital efficiency. “Over-collateralization” isn’t suitable for consumer lending, where borrowers want leverage their good reputation to amplify their access to financial resources beyond what they currently have. Institutional under-collateralized lending is happening today through protocols such as Maple Finance and TrueFi however loans are approved by governance token-holders so risk-underwriting is fundamentally “human powered” and limited in scale. Consumer lending in traditional finance is a $4.5T market, almost three times larger than the $1.5T institutional lending market, however DeFi-powered under-collateralized consumer loans aren’t happening in DeFi yet. To enable consumer lending, we need to quantify risk at scale, which requires an algorithmic approach, which is a “credit score”. That's what we're building at Cred Protocol.