Credit Scoring on Compound

Hi team, I lead product at Cred Protocol (a web3 credit bureau) - we have built the first and most widely used predictive credit score based on blockchain data. We are looking for ways to build on and integrate with the Compound ecosystem and would love the thoughts of the Compound Team & Community on some potential grant proposals

Multi-Chain: analytics comparing pool data across different chains (including risk based insights on behaviour and creditworthiness between different chains), using real time data to monitor disparities in behaviour between chains

Protocol Ideas: full ingestion of Compound data into our credit score and report, and integrating that Compound informed credit score into the Compound Protocol (dynamic liquidation thresholds, risk based collateral requirements etc)

Protocol Ideas: Providing aggregate data across all chains and versions of Compound to inform dashboards driven by risk based data. This could be used either be for internal monitoring purposes or given to Compound user to allow them to assess high level performance and creditworthiness of the protocol and its participants

Let me know if any of these are interesting or if there is something youd rather see us build!

Interesting! This sounds a little bit similar to what DeFiSafety is building. Improved Token Technical Risk Report for New Market proposals

I think that external, public facing tools are the best path for those that use the protocol. I don’t know who would see them if they were to be “internal.”

Do you have any visual examples of what you can build for the Compound community? Can you explain how a user of the protocol would use this tool before opening their position? What decisions can they make based on this kind of credit score?

@adam - thanks for your response. Some notes below:

  • Quickly reviewing the DeFi Safety proposal, they seem to focus on the risk associated with specific tokens, our expertise is in risk assessment at both wallet/account and cumulative protocol level
  • ‘External’ public facing tools could be:
  1. Showing the community the aggregate credit scores of wallets interacting with Compound on different versions or chains, 2. Information about the aggregate credit scores of the community borrow/lending on a certain combination or currency pair. 3. Insights about how borrowing and repaying on Compound is impacting and improving their own creditworthiness and credit score. This information could then be used by the user to make risk based decisions about where / how much they borrow
  • ‘Internal’ tools could be used **by Compound’s platform ** to improve the user experience, examples of this might be:
  1. Providing Compound with the creditworthiness of the borrower, and using that credit score to offer improved loan terms (size, yield etc.) We are already doing this with another lending protocol who is using a score we developed based on their lending data to offer under collateralised loans