1.What’s the RociFi and backers
1.1 What’s the RociFi
RociFi is the Layer 1 for a permissionless, multi-chain web3.0 credit economy.
RociFi is building decentralized credit economy with transferable, blockchain-native credit scores designed to facilitate zero and under-collateralized lending. At its core, the protocol leverages machine learning algorithms for scoring on-chain data and decentralised identity data points to effectively facilitate under-collateralized loans via the blockchain.RociFi changes the game, introducing the idea of on-chain credit scoring as well as NFT-based identity.”
1.2 Backers
RociFi, a decentralized zero and under-collateralized lending protocol, has announced completing a seed funding round of $2.7 million USD from Arrington, Goldentree, Nexo, LD Capital and Skynet Trading.
2. Why the RociFi is significant?
Under-Collateralized lending is a fundamental building block that has yet to be solved within DeFi. Current blockchain lending is highly capital inefficient due to the overcollateralization of loans given the pseudo-anonymity of borrowers.
If DeFi is to reach its full potential, borrowers must have access to credit without locking excessive amounts of capital.
This is why RociFi was created: to enable a massive shift to lending on Web3.0 utilising non-custodial banking, decentralized identity, on-chain reputation and blockchain-native risk management.
RociFi’s efforts will galvanize the DeFi space into squeezing fraudulent actors out of crypto, laying the foundation for higher level objectives like a permissionless, credit economy designed to support web3.0.
RociFi intends to spearhead this initiative by being the first protocol to issue permissionless under-collateralized loans and provide a free dashboard for DeFi users to check the fraud risk of addresses or contracts before interacting with them.
3. How does the RociFi work?
RociFi is a permissionless under-collateralized lending protocol, which makes it a likely target for fraud. In order to mitigate this, RociFi have developed analytics to proactively identify and block fraudulent addresses from the RociFi ecosystem.
RociFi is contributing in two ways:
3.1 Multi-chain Credit and Reputation Score
RociFi will integrate its nonfungible credit scores (NFCS) into decentralized identity (DID) providers and social graph protocols so web3.0 users can prove credit and reputation across multiple chains. This accomplishes two things: 1. Establishes multi-chain proof of credit and reputation; 2. Lays the foundation for social recourse.
RociFi links disparate data points such as DAO participation, social graphs, NFTs, and on-chain behavior to build a ‘Web3 citizen’ (metazen) profile of users; applicable to both borrowers and lenders.
3.2 RociFi Fraud Classifier
RociFi will provide its fraud analytics to the public via a free dashboard. DeFi users can now check the fraud risk of addresses and contracts before interacting with them. This shortcut is especially helpful to non-technical users who cannot read code.
Ultimately a metazen wants a streamlined, portable single ID rather than having multiple IDs and wallets. By bringing together data points from the main areas of Web3 and DeFi into RociFi’s non-fungible credit score (NFCS), it is attempting to build the ‘bitcoin standard’ for creditworthiness and reputation that protocols, DAOs, and individuals can use.
RociFi’s Links
Website: roci.fi
Twitter: https://twitter.com/rocifi
Telegram: http://t.me/RociFi
Medium: blog.roci.fi
Mirror: http://mirror.xyz/rocifi.eth