Overview
This section briefs about the credit scoring methodologies followed.
Credit Scoring Model is a generalized methodology depicting the credit worthiness of a user based on their on-chain and off-chain data. Our scoring methodology follows multiple differentiated models with the main goal of verifying whether the user is financial responsible or not. The total credit score is 1000 points. It is divided between four major standards:
On-Chain Credit Integration
Off-Chain Credit Integration
Real World Financial Metrics
Ongoing Credit Data
The model uses three differentiated scenarios to arrive at the final score of the user based on the type and amount of data provided by them. The credit scoring algorithm decides which methodology is chosen among the three based on the data points given by the user while the onboarding process.
Methodology A: On-Chain Credit Dependency
In this scenario, the user integrates their on-chain data during the onboarding process, therefore, majority weightage of the score is dependent on the on-chain data of the respective user. In this methodology the weightage is as follows:
On-Chain Credit Integration: 60%- 600 Points
Off-Chain Credit Integration: 25%- 250 Points
Real World Financial Metrics: 5%- 50 Points
Ongoing Credit Data: 10%- 100 Points
Methodology B: Off-Chain Credit Dependency
In this scenario, the user integrates their off-chain data during the onboarding process, therefore, majority weightage of the score is dependent on the off-chain data of the respective user. In this methodology the weightage is as follows:
On-Chain Credit Integration: 25%- 250 Points
Off-Chain Credit Integration: 60%- 600 Points
Real World Financial Metrics: 5%- 50 Points
Ongoing Credit Data: 10%- 100 Points
Methodology C: Real World Financial Data Dependency
In this scenario, the user integrates their real world assets and liabilities during the onboarding process, therefore, the weightage of the score is dependent on the real world data of the respective user. In this methodology the weightage is as follows:
On-Chain Credit Integration: 25%- 150 Points
Off-Chain Credit Integration: 40%- 350 Points
Real World Financial Metrics: 25%- 400 Points
Ongoing Credit Data: 10%- 100 Points
Privacy and Security
The data provided by the user is encrypted with BLS and TEE encryption and converted in form of Soul Bound tokens (SBTs) and stored on-chain attested to the user DID. This ensures the data privacy and security of the user.
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