ETH 100% LTV DeFi Loans* -- Now Available
DeFi’s first integrated on-chain credit score
Hey all! Outside of writing content about the market, the ARCx team has been working hard over the past 18 months on some groundbreaking new products. The first which I’m very excited to share with you today is ARCx Credit (Beta) – the safest and most capital efficient borrowing experience in DeFi.
There is no KYC, no counterparties to match and no humans making case-by-case risk decisions.
You can read more about the system, our thinking on designing it and more in the official launch article here: https://arcx.substack.com/p/introducing-arcx-credit-and-the-defi
If you want to know more around the risk and infrastructure, you can read those details directly here: https://wiki.arcx.money/risk-and-infrastructure/risk-management
Why this is important
The bigger reason that I believe this is critical to the future of crypto is that it enables on-chain identity and reputation to have a real, tangible use case. The fact that a good, responsible borrower now has access to more capital, algorithmically determined & accessible via smart contracts, is huge.
Targeted airdrops and fun scores to check out were the beginning. Getting access to more capital takes on-chain identity to a whole new level.
Zooming out of borrowing, it also marks a key behaviour change that I believe in: doing the right long term thing on-chain. Currently, there is no incentive to do so in crypto. However, with the technology we’ve spent many months working on – all of that changes. Your wallet’s actions and behaviours can lead to new opportunities and rewards outside of pure airdrops.
What it’s taken to build this
When I first embarked on this journey, I honestly didn’t really know what I had signed up for! Luckily, having the fortune of an amazing team with years of runway, made the journey a lot more fun – and viable! In that time we’ve had to build some critical infrastructure that hasn’t existed in DeFi till date. Some of these include:
Ingest and store transaction data from the blockchain
Perform heavy calculations to derive a unique Credit Score for each wallet address
Continuously ingest new transaction data and frequently update the Credit Score
Allow us to modify the Credit Score parameters as required by an in-house risk function
Publish all Credit Scores on-chain in a gas-efficient and secure manner
Be verifiable on-chain to prevent fraud or exploitation
Allow for external validation and verification to ensure Credit Scores are correct
Scale publishing process to allow the indexing of many wallet addresses
You can read more about the infrastructure and challenges at the docs (https://wiki.arcx.money/risk-and-infrastructure/infrastructure/context-and-challenges).
What comes next
The beta is capped to an initial $100k loan book to limit the amount of risk we take with this new system. The initial supplier capital is fronted by ARCx to indicate the confidence we have in the system to bootstrap it. While this initial loan book is filled out we’ll be investing heavily in our infrastructure to make it more secure and safe to scale a larger loan book.
We’ve also got some other really cool crypto products that are enabled by this new infrastructure that I’ll be showcasing in the coming weeks and months – however this should give you a flavour for what we have underneath the hood ;)
View more here at: https://arcx.money
*100% LTVs are only available to 999 credit scored users and not guaranteed.