CreDA (Credit DeFi Alliance) announced its partnership with FilDA to bring CreDA users exclusive lending rates. To avail leveraged lending along with low or no-collateral loans within the CreDA platform, users have to mint their Crypto Credit Scores in the form of Credit NFTs (cNFTs).
CreDA is the leading credit rating service built on the Ethereum Layer 2 network. In the first quarter of 2022, CreDA will launch across multiple chains such as Binance Smart Chain, Elastos Sidechain, and Ethereum mainnet, with more blockchains to be added to the list throughout the year. The Credit Oracle by CreDA has already retrieved billions of on-chain activity data and an upward of 90 million Ethereum blockchain addresses. CreDA's protocol computes a user's Crypto Credit Score and removes KYC (know our customer) requirements for protecting consumer identity. The extensive data pool of transactions paired with the blockchain addresses will help CreDA build a credit model that can be relied on.
More than 200 million people now own digital assets worth over $250 billion, yet they find it difficult to get a loan. The over-collateralization in the DeFi space discourages many borrowers. CreDA has previously demonstrated through its platform how Crypto Credit Scores can remove all the unwanted barriers in crypto lending. With its partnership with FilDA, the largest crypto lending platform on HECO, CreDA wants to provide a trust-based lending architecture in DeFi. TransUnion has also taken a similar approach by Trying To Enable Crypto Lenders to Check Consumer Credit Scores.
CreDA Oracle uses Artificial Intelligence to analyze a user's assets, transaction history, and on-chain behavior to provide on-chain credit ratings. This data can then be used for minting a user's credit NFT (cNFT), a secure NFT that determines a user's credit scores on the blockchain. CreDA provides borrowers with an all-in-one platform to link their crypto wallets, mint their creditNFT (cNFT), and borrow cryptocurrencies at preferential interest rates and incentives. The partnership with FilDA will allow users to use leveraged lending and no-collateral loans depending on their Crypto Credit Score.
You can only realize money's actual value when you borrow or lend some. Credibility is one of the factors missing from today's fast-evolving DeFi space. CreDA, with FilDA's help, is striving towards providing this credibility on the blockchain. It provides a great model to analyze risk profiles for users and provide them with personalized interest rates and services. As more and more institutions find their way into the crypto lending sector, we can expect some incredible blockchain innovations soon.