We’re participating in this year’s ETHDenver Buidl week! The four top teams using our API can win a total of $15,000 (details below). Our judges are hackathon veterans, and we’re hoping to see brand-new, innovative work. We’re also going to be open-sourcing our smart contracts during the ETH Denver. Be sure to keep an eye on our blog or Twitter for details to come.
Introduction to our project:
Spectral Finance creates a programmable creditworthiness ecosystem facilitating capital efficiency on-chain through credit risk analysis. As it exists today, creditworthiness in traditional financial markets are static and imposed by opaque institutions. Siloed and monopolized, users have very little control or perspective on their credit. In addition, implementations and applications for creditworthiness are encumbered by their lack of composability.
At Spectral Finance, we propose a paradigm shift to the DeFi lending ecosystem by introducing credit risk infrastructure based on a user’s on-chain activity and behavior. The natural evolution towards credit scoring aligns with the premise of web3: the absence of a central scoring body and ease of access to anonymous data that can be tied to an individual’s credit risk.
Examples of on-chain data points that we use to assess credit risk include:
- Number and volume of the following transaction types, including various time-based related metrics:
- Credit mix — diversity of interactions with various DeFi protocols
- Wallet transactions, including wallet balance
- Account health-related indicators, e.g., the amount borrowed as a proportion of the available collateral
If you would like to learn more about how we create an on-chain credit score, please refer to the following article.
The Bounty Description:
It’s Buidl season with Spectral Finance! We’re excited to welcome Web2 + Web3 developers alike, to our growing ecosystem through #BuidlWeek at ETHDenver.
Prompt: Build a dApp that integrates Spectral’s MACRO score in a way that brings value to an existing Web3 protocol, or that can create new value through a novel implementation (ex. hybrid lending systems, identity tools for MACRO Score, etc.). Launch MVP on Abritrum Goerli.
We’re looking for innovative solutions that encourage collaboration. Such as tools to bridge the gap between, traditional FinTech and Web3, credit analysis; projects that utilize the MACRO Score to enable end-to-end capital efficiency or that enables new ways of lending on-chain. Examples include (but are not limited to):
- A lending protocol that uses Spectral’s MACRO Score (on-chain credit score) to adjust interest/collateral rates
- OR create an entirely new model for lending (eg. imagine Uniswap v3 but for lenders)
- A gating mechanism for protocol usage. Gates can be ranges of the score (eg. imagine a low-risk lending facility only serving users with scores 700-850)
- A protocol that does not reveal a user’s score on-chain (using zero-knowledge proofs or other tools) and adjusts behavior with users in an obfuscated manner. (eg. User A interacts with Protocol 1 → Protocol 1 wants to know how credible User A is. How do we prove to Protocol 1 what User A’s score is without revealing the score to Protocol 1.)
$15,000 USDC Total Prize for 4 Recipients
1st Place Winner: $8,000 USDC
2nd Place: $5,000 USDC
3rd Place: $1,000 USDC
4th Place: $1,000 USDC
- Vision and use case
- Live and usable MVP on Abritrum Goerli
- Video demo of a live application
- Open Source code: e.g. MIT, BSD, GNU
- Great documentation in code and a well-explained README.
- Please show a steady commit trail and thought process e.g. sketches, discussion, and issues on how you arrived at the decision to incorporate this feature.
- List any challenges or benefits you encountered in the developer experience.
- Vision and use case
- Usability of the dApp
- Review of the Open Source Code
- Overall Value Proposition (any of the following)
- Improves capital efficiency of lenders and borrowers in DeFi protocols.
- Improves the functionality of Web3 protocols.
- Implementation of MACRO score in an application creates value in novel ways.
- Creation of a tool that improves the MACRO Score.
- User Experience
MACRO Score Resources