Cred Protocol Disclosed Its First Decentralized Credit Scores

Cred Protocol, a business engaged in decentralized credit scoring, has revealed the outcomes of its initial automated credit scoring system (DeFi). The results, as described in a Twitter thread by Julian Gay, CEO of Cred Protocol, demonstrated how Cred effectively used historical transaction behavior on the Aave protocol to evaluate the creditworthiness of potential borrowers based on on-chain behavior in the DeFi area. Cred Protocol creates a health factor score that forecasts the likelihood of future liquidation for a single address using machine learning to evaluate time-based account attributes and analyze the user’s past transaction behavior. According to Gay, this score was one of the most effective baseline predictors of creditworthiness. 1/ Over the last few months, we've been working to build one of the first credit scores for DeFi. Today, we're excited to share the results of our first credit score with the world! 🌍 Read more below 👇 — Julian Gay (@juliangay) July 14, 2022 Global Access To Decentralized Finance Cred Protocol states that it will increase global access to decentralized finance by introducing reliable credit scores that allow “anyone with an internet connection” and “a strong financial reputation” to obtain loans. DeFi makes it feasible to run financial services with a Peer-to-Peer (P2P) system, eliminating an intermediary or central authority where borrowers and lenders have their loan worthiness ass...