Community Ambassador for Credible
The First Decentralized AI Credit System.
Checkout: https://crediblefinance.notion.site/litepaper
Introduction
Credible is revolutionizing the credit ecosystem by creating a decentralized, AI-powered infrastructure for consumer credit. By focusing on serving the 560 million crypto holders globally, Credible unlocks liquidity from crypto portfolios without requiring asset sales. Collateral can include on-chain whitelisted assets such as cryptocurrencies, staked assets, and tokenized Real-World Assets (RWAs). Furthermore, Credible's innovative credit scoring mechanism allows fintechs and other decentralized applications (dApps) to gain valuable insights into their users' on-chain reputations. Our vision is to build a transparent, accessible, and efficient financial system where credit can flow seamlessly across borders and ecosystems.
Market Opportunity
The global credit market is valued at trillions of dollars, yet millions of consumers remain underserved due to outdated and exclusionary practices in traditional credit systems. Among the 560 million crypto holders worldwide, many face barriers to accessing liquidity without liquidating their holdings. Additionally, a growing number of Web3 remote workers are paid in crypto and find it challenging to establish a local banking reputation, limiting their access to credit cards, cash loans, and other financial products.
Credible addresses these challenges by offering:
- A fiat consumer credit infrastructure leveraging on-chain whitelisted assets.
- AI-driven credit scoring that analyzes wallet activity (past and future) to build credit reputations.
- Solutions that help Web3 remote workers build credit scores and gain access to credit.
- Credit scores that can be utilized by fintechs and Web3 protocols to evaluate user on-chain reputation.
With built-in crypto-to-fiat rails, Credible also recommends Web3 employers use the system for payouts at no cost, enabling their teams to build a strong credit reputation while simplifying payroll operations.
Credible is positioned at the intersection of AI and blockchain, unlocking new opportunities in underwriting, loan collateralization, and credit scoring for underserved populations and Web3 ecosystems.
Problem Statement
Despite the exponential growth of the crypto ecosystem, reliable credit infrastructure remains a significant barrier. Crypto holders struggle to access liquidity without selling their assets, and Web3 workers face challenges in building financial credibility with traditional banking systems. Fintechs and dApps lack robust tools to evaluate user creditworthiness in a decentralized environment. These challenges highlight the urgent need for a system that bridges traditional and decentralized finance, ensuring equitable access to credit.
What is Credible?
Credible is an AI-powered consumer credit infrastructure that generates on-chain credit ratings and leverages these ratings to offer cash loans, credit cards, and pay-later products.
Credible serves the 560 million crypto holders, unlocking liquidity from their crypto portfolios without requiring them to sell their assets. We offer a fiat consumer credit infrastructure where:
- Credit scores are built based on wallet activity (past and future).
- These scores are used to calculate Loan-to-Value (LTV) ratios against collateral such as cryptocurrencies, staked assets, and tokenized Real World Assets (RWAs).
This innovative approach ensures that crypto holders can leverage their portfolios while retaining ownership, fostering financial inclusion and flexibility.
How Credible Works?
1. Credit AI Agent: Segregates wallet activity and generates on-chain credit scores based on various parameters. Learn more here: https://crediblefin.notion.site/creditai-infra.
2. Credit Oracle Nodes: Stores credit reports of wallets in a decentralized manner and makes them accessible to fintech and other Web3 protocols. Credit AI updates the records every three months.
3. Consumer Credit Products: Cash loans, Credit Card, and Buy Now, Pay Later (BNPL) are backed by on-chain collateral in crypto, staked assets, or tokenized RWAs. The LTV depends on borrowers' on-chain credit scores and the collateral assets.
4. Loan Disbursement: Loans are disbursed in fiat to bank accounts or via MoneyGram. Users can also add this credit limit to their credit cards.
5. Repayment: Repayments are made in stablecoins, with USDC currently being the only supported option.
6. Liquidation: In case of default or price variations, the collateral is liquidated with a 10% liquidation fee, interest, and principal amount payment. The surplus amount is refunded to the borrower. We are actively working on no-liquidation mechanisms for Bitcoin loans.
Decentralized AI Credit Infrastructure
Credible’s Credit AI infrastructure represents a monumental leap in onchain financial innovation. By combining AI-driven credit scoring, decentralized data storage, and interoperable protocols, Credible is redefining how creditworthiness is assessed and utilized in the blockchain space. With the vision of enabling undercollateralized lending, private credit solutions for businesses, and a robust consumer-facing application in Credible Finance, the platform is set to become a cornerstone of the decentralized financial ecosystem, driven by its community-first.
AI Agent: Building a Comprehensive Onchain Credit History
The CreditAI system employs a sophisticated AI agent to build a comprehensive credit history for blockchain wallets. This is achieved by analyzing and categorizing wallet transaction data into various dimensions, including:
- Transaction Segregation: Categorizing wallet activities into trades, lending, borrowing, and liquidity pool operations.
- Risk Exposure Analysis: Utilizing Webacy to assess risk exposure by evaluating transaction patterns and associated activities.
- Wallet Longevity: Factoring in the wallet's age, measured from its first recorded transaction.
- Reputation Protocol Integration: Leveraging data from reputation protocols like SolanaID and Nomis for enriched insights.
- Balance Metrics: Calculating average balances to gauge financial health and activity.
- High-Risk Transactions: Identifying involvement in gaming, prediction markets, and similar high-risk activities.
- Illicit Activity Exposure: Detecting potential links to suspicious or illicit activities.
The AI agent processes this extensive dataset to generate a dynamic credit score accompanied by a detailed credit report. This credit rating provides a transparent and holistic view of a wallet’s creditworthiness.
Oracle Nodes: Ensuring Transparency and Usability
The credit reports and scores generated by the CreditAI agent are stored onchain through a decentralized oracle node architecture. This design ensures:
- Authenticity: Data integrity is guaranteed by leveraging decentralized oracles.
- Reliability: The onchain storage mechanism provides consistent access to accurate information.
- Transparency: Credit scores and reports are immutable, promoting trust among users.
- Interoperability: Other protocols can seamlessly access and utilize these credit scores for their decision-making processes.
Application of Decentralized AI Credit Infrastructure
The CreditAI infrastructure is integral to Credible’s loan processing capabilities, particularly for calculating Loan-to-Value (LTV) ratios. Borrowers benefit from this cutting-edge system, which adjusts LTV offerings based on their credit scores. Key features include:
- Dynamic Scoring: Credit scores are updated quarterly to reflect the latest wallet activity and behavior.
- Undercollateralized Lending Vision: As the CreditAI system matures with more transaction data and user activity, Credible aims to transition towards offering undercollateralized loans, making credit more accessible.
The CreditAI-generated scores are utilized across Credible’s consumer credit products, including:
- Cash Loans: Providing quick and efficient access to stablecoin-powered loans.
- Credit Cards: Enabling users to manage expenses with a blockchain-integrated credit system.
- Pay Later: Supporting seamless deferred payment options for retail users.
Additionally, Credible extends its infrastructure to business users through private credit offerings, enabling venture debt raises for businesses. This allows companies to secure the funding needed to scale operations, backed by transparent and efficient credit assessments.
This unified approach makes Credible a comprehensive credit infrastructure platform.
Achievements to Date
- Processed $6 million USD in loans within five months of launch.
- Served over 3,000 borrowers, generating $60,000 USD in revenue.
- Built a robust ecosystem of lending partners, liquidity providers, and borrowers.
- 1st prize winner at FoundersVilla, UAE by Solana Superteam.
- 4th prize winner at SolanaSummit, Malaysia by Solana Foundation.
- Featured project on Colosseum Renaissance Hackathon by Solana Foundation.
- Successfully completed Outlier Ventures Accelerator RWA bootcamp.
- Over 10,000 registered users.
$CRED Token
The $CRED token is the backbone of the Credible ecosystem, fueling operations and incentivizing network participants. Key functions include:
- Credit Rating Oracle: $CRED powers the decentralized oracle nodes that update and validate credit scores on-chain.
- Staking and Governance: Token holders can stake $CRED to participate in governance and earn rewards.
- Transaction Fees: $CRED is used to settle fees within the Credible platform, ensuring seamless operation.
Roadmap
2024:
- Join Outlier Ventures Accelerator.
- Launch Private Credit.
- Cash loans for INR go live.
- Process $5M USDC in loans.
2025:
- Launch CreditAI.
- Conduct Node Sale.
- $CRED Token Generation Event (TGE).
- Introduce cash loans in USD, EUR, AED, PHP, and VND.
- Launch credit card services.
- Whitelist staked assets, tokenized stocks, and bonds as collateral.
2026:
- Introduce Buy Now Pay Later (BNPL) services with a dedicated store for Web3 phones, rings, and more.
- Scale operations with additional collateral options and expanded fiat rails.
Security and Compliance
1. Non-Custodial Platform: Credible is a non-custodial platform, meaning wallets are either self-custody or managed by our partner Circle, which handles custody for users.
2. No Access to Collateral: Unlike other fiat lending platforms, Credible takes a DeFi approach and never takes custody of collateral, preventing scenarios like Celsius and BlockFi.
3. Audited Smart Contracts: Credible’s smart contracts are audited by Sec3 on Solana.
4. Nominee Service: Credible offers an insurance service for your funds and keys, where encrypted keys can be passed on to your next of kin via nomination.
5. Risk Monitoring: Wallets connected on Credible are monitored for exposure to illegal activities or red-flagged platforms like Tornado Cash.
6. KYC and Monitoring: All borrowers must be KYC-verified, while lender wallets are monitored without requiring KYC.
Why Credible?
- AI-Driven Innovation: Harnessing the power of AI for accurate and unbiased credit assessments.
- Decentralization: Empowering users through decentralized governance and transparency.
- Proven Expertise: Backed by a team with over a decade of experience in Web3 and a successful track record in successful fintech exit and working with HSBC, Nexo, Oracle.
Join Us
Credible is redefining the future of credit. Be part of the revolution by exploring our platform, joining our token sale, or partnering with us to create a more inclusive financial ecosystem.
Visit our resources for more information:
https://credible.finance/invite/gpaldo
https://credible.finance/invite/gpaldo
https://credible.finance/invite/gpaldo
