TORONTO, Feb. 15 2021 (GLOBE NEWSWIRE) – Credit is essential to the proper functioning of any modern financial system. Credit issuance has historically been monopolized by a few dominant financial institutions, leaving small participants as spectators.
The developers of Zoracles Protocol are committed to democratizing credit by developing a unique algorithm to assess creditworthiness. Zora’s initial release showcases their initial efforts to assign a credit score to every Ethereum address. Accounts with a longer history and verified transactions will gain confidence over time. At the moment, the scores are calculated between 0 and 100.
Over the next few months, the Zoracles development team will create cash pools that allow participants to contribute small amounts of crypto in exchange for higher lines of credit and trust scores. An API will be built for other dApps to use this metric in loan protocols that could greatly benefit from individual credit rating.
Credit ratings will become an integral part of the blockchain ecosystem, as platforms like AAVE will continue to grow in size, importance, and total locked-in value. The team expects its native Zora dApp to attract significant users with its issuance of unsecured lines of credit. Currently, you need collateral to borrow cryptos on APP markets such as Compound or AAVE. This favors large holders, or whales, to access large crypto loans.
Zoracles Protocol believes to build the solution with an algorithm powerful enough to accurately identify credit risks and assign weighted signals to establish decentralized trust. The developers are focusing on their native credit rating as the first major step in achieving unsecured lines of credit.
Democratizing access to credit is one of the main missions of Zoracles Protocol and their new product Zora. A decentralized financial system will need credit ratings for people who do not have the collateral to access funds from lending markets.
The founding team is comprised of information retrieval engineering talents who deeply understand the importance of a strong, fundamental algorithmic approach to problem solving. Once proven to accurately assess credit risk, the Zora API will likely become ubiquitous in the DeFi lending landscape.
Typical of any Zoracles product, privacy and confidentiality will be an important element. The team has developers working on a ZK-Snark that will hide the user’s credit score once the credit is issued to an Ethereum address. The team wanted an early snapshot allowing users to recover their blockchain credit rating as determined by on-chain factors such as address age, recent transaction history, and Ethereum balance. This is an important step in algorithmic solvency resolution and will lead to future lines of credit for eligible accounts.
Zoracles partners with DeFi projects using zero-knowledge evidence to deliver confidential data to smart contracts. Our product lines include credit, price feeds and a “Snarks-as-a-service” governance platform. Learn more by visiting the Zoracles website.
Email: [email protected]
Telephone: +1 647 930 9319