Crossing the Chasm

Aug 9, 2022

Introduction

RociFi is a decentralized credit market with non-transferable, native-to-blockchain credit scores created to support lending with little collateral. The protocol’s fundamental strategy is to efficiently and economically support under-collateralized loans on the blockchain by analyzing a user’s on-chain data only. With this novel strategy, DeFi lending will experience a new era of capital efficiency and revenue expansion while ushering in mainstream adoption.

RociFi Borrowing Process

You may be wondering how blockchain native under-collateralized lending is possible. Well, it’s quite simple.

• Borrowers connect their wallet(s) with the same seed phrase
• Wallet(s) are scored based on the on-chain transactional history with an emphasis on three key components (see below)
• Borrower receives a non-transferrable NFCS (Non-Fungible Credit Score) which is the user’s gateway to accessing the platform
• Lock WETH as collateral
• Borrow USDC on under-collateralized basis, e.g. $80 value of WETH and receive $100
• That’s it!

Credit risk: the borrower is able to repay the loan, i.e. creditworthinessFraud risk: the borrower is willing to repay the loan, i.e. trustworthinessReputation risk: the borrower has something to lose in the event of failing to repay the loan, i.e. social recourse

The credit score is calculated based upon risk, i.e. lower risk the better, thus the best score is 1, while the worst is 10. Currently, the scoring process emphasizes interactions with DeFi protocols, i.e. if you’ve never taken out a loan on Aave or Compound but request an under-collateralized loan from RociFi — that is unlikely to be rated well.

The NFCS is meant to be the Web3 credential for credit, reputation, and trust; while providing holders access to rewards, giveaways, and early product access.

Crossing the Chasm

RociFi has created an entirely new credit marketplace and credit scoring process which will onboard the next 1 billion users to DeFi. Rather than cater to the privileged elites of crypto, RociFi aims to make DeFi great againwhile forcing Vitalik Buterin to eat his words.

“Perhaps the largest financial value built directly on reputation is credit and uncollateralized lending. Currently, the web3 ecosystem cannot replicate simple forms of uncollateralized lending.”

By giving the “Promethean” power to the people with an on-chain credit score that they control, we help remove the reliance on traditional banks and capital markets — which are inaccessible for many around the world.

Additionally, DAOs will have the ability to borrow with their on-chain credit score as well — financing productive utilization of debt compared to speculation.

The power of crypto is being able to go straight to the consumer. The user owned NFCS will onboard the next billion users to the capital markets of the future — growing the real-world utility of DeFi.

Conclusion

RociFi is a decentralized credit market with non-transferable, native-to-blockchain credit scores created to support lending with little collateral.

RociFi is singularly focused on creating a product that its community loves, but the “north star” is to build the financial rails so that DeFi can “cross the chasm” into mainstream adoption by onboarding billions of users. By which, hopefully change the world for the positive in some small sentiment.

Join the RociFi movement:

Mint your NFCS ➡️ blog.roci.fi