Spectral develops Chainlink solution to power MACRO score, introduces non-fungible credit

2021-12-10 18:00

Programmable creditworthiness protocol Spectral built a custom Chainlink (LINK/USD) oracle solution to power its MACRO score (Multi Asset Credit Risk Oracle), Invezz learned from a press release. MACRO scores are calculated based on payment history, credit mix, liquidation history, credit history length, amounts owed and repaid, and other data.

Blockchain makes access to financial services easier

Blockchain data transparency makes it possible to provide insight into users’ creditworthiness. Loan recipients have easier access to financial opportunities and services. Platforms use verifiable computation to create a system that does not rely on the trust of a user in the credit-scoring mechanism.

Introducing non-fungible credits

The process of calculating MACRO scores introduces the concept of NFC or non-fungible credit. These credits enable users to combine wallets and sync their transaction history into a single ERC-721 asset, which can then be used as collateral. It also represents their DeFi behavior.

Users can take back control by leveraging their on-chain activity as a credit score to benefit from the best possible loan terms. This is possible by doing away with intermediaries and adding transparency to the process of calculating credit scores.

Sishir Varghese, founder of Spectral Finance, said:

The flexibility of Chainlink enabled us to build a custom solution for calculating a reliable and reproducible on-chain credit score based on past Ethereum transaction activity. Through MACRO scores, DeFi protocols can begin to gain insights into users without users having to give up personal information, opening up new possibilities for the industry like lower collateralization requirements.

Chainlink adapters collect data and perform analysis

Spectral decided to customize their oracle infrastructure by building it on top of Chainlink. Chainlink External Adapters enable collection of on-chain data, performance of data analysis, and delivery in a highly secure and reliable manner. The following adapters are used to calculate MACRO scores:

an “aggregator” adapter that calls other adaptersa single adapter that calls all provider APIsmultiple adapters Chainlink accesses any API and applies any custom computation

Chainlink oracle infrastructure can access any API, aggregate data through custom computation, and use a node network configured to different levels of decentralization and trust assumptions.

The post Spectral develops Chainlink solution to power MACRO score, introduces non-fungible credit appeared first on Invezz.

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