# Roci.fi - undercollateralized borrowing with credit scoring

**Published by:** [Wagame.eth🦇🔊  | Wagame.lens🌿](https://paragraph.com/@wagame/)
**Published on:** 2022-08-21
**URL:** https://paragraph.com/@wagame/roci-fi-undercollateralized-borrowing-with-credit-scoring

## Content

Hey anon, don't fade Roci.fi - undercollateralized borrowing could soon become a gamechanger for Decentralized Finance as we know it! "But ser, how can that ever be sustainable?" you might say... Probably it's not as outrageous as it sounds So what is Roci.fi? TL;DR version: undercollateralized lending enabled by on-chain credit score #NFCS based on: DeFi repayments & Social score (no, not dystopian social credits managed by a central authority - but a mechanism called social recourse) Undercollateralized loans for pseudonymous borrowers didn't seem outrageous to VC Investors, Roci.fi has been able to close a $2.7M seed round with participation of: Arrington Capital, GoldenTree Asset Management, Nexo, LD Capital, SkynetTradingRociFi Raises $2.7 Million in Seed Funding to Lend Money to Anonymous Users in DeFiRociFi, a decentralized zero and under-collateralized lending protocol, has announced completing a seed funding round of $2.7 million USD (closed in November...https://www.businesswire.comRoci.fi Founders are doxxed, Chris Brookins is a TradFi veteran but involved in crypto since 2017! Previous roles in corporate debt and commercial loans at PNC Bank, Maple Finance and also co-founder of a quantitative crypto hedge fund.Roci.fi - How does it work in detailBefore borrowing, the NFCS (Non-Fungible Credit Score) NFT has to be minted. Similar to TradFi FICO, but consisting only of on-chain data: DeFi history and social Reputation. Roci.fi NFCS credit score requires no KYC & AML but fraud database are screened NFCS is permissionless, free, instant & always up-to-date Good credit scores (1–6) provide access to under-collateralized loans - riskier scores (7–10) receive over-collateralized loans What measures are in place to avoid a bank run? Roci.fi issues so-called "debt tokens" which are tradeable loans bundled by credit risk score and can be resold on secondary market AMMs - “decentralized bond market” which is the first ever in DeFi. Another safety measure put in place on protocol level guarantees that the value of under-collateralized loans will never surpass the total reserves deposited. All smart contracts and debt conditions are open source.Roci.fi credit score NFCS in practiceMultiple addresses can be added, i.e. “bundled” to NFCS. In this case the credit score is attained based on the aggregate transaction (Tx) history. NFCS is immutable once generated. Currently Roci.Fi analyzes Tx history of bundled addresses on 4 blockchains: Ethereum Mainnet, Polygon, BSC and Avalanche. Soon the activity on all major EVM-compatible chains and Layer2 will get included into NFCS. Addresses can be included in 1 bundle and borrowing available only from ‘Primary’ address in bundle. NFCS is minted as SBT (Soulbound Token) on Polygon and is therefore non transferable.Potential additional use cases of NFCS within DeFi & DAO'sRoci.fi NFCS based reputation could potentially be used for Sybil resistance in DAO elections - balancing DAO voting power according to NFCS reputation and also for prioritizing Token airdrops and Whitelists to quality users i.e. lower NFCS scores.Roci.fi Alpha: Mint your NFCS credit score 👇RociFi - On-chain Credit Scoring and Capital-Efficient Lending ProtocolMint NFCS (Non-Fungible Credit Score); DeFi Credit Scoring; Borrow Under-Collateralized DeFi Loans with 70-85% of Collateral; Lend up to 15% APRhttps://roci.fiIf you are an active DeFi user with borrowing history (no liquidations obv.) and good on chain reputation you might attain <5 #NFCS which qualifies you for undercollateralized loans - just imagine, you can borrow more than your underlying collateral and use the funds to yield farmRoci.fi Alpha: How to improve NFCS credit score?✅bundle wallets with Tx history >200 days ✅borrow on blue-chip money markets like Aave ✅improve reputation/social score by connecting ENS, BrightID, Sismo, Link3 ✅donate on Gitcoin ✅participate in DAOs by gov vote ✅own Rabbithole credentials ✅Probably other notable SBT credentials might get included soon, Noox, Mazury Want to know more about SBTs (Soulbound Token)? 👇our dedicated thread wagame @xwagame 1/ New week, new thread - after all today is Wagame-Wednesday! This time we cover web3-credentials and #SBTs (Soulbound Tokens). Never heard of those anon? That's cause we’re very early! Btw there will be #airdrops too Read on for Alpha no one else’s talking about 49 2:13 PM • Jun 1, 2022 Roci.fi Alpha: Community questsNot eligible for undercollateralized loans? Short of funds? Wait, there are still interesting opportunities for you, anon Become an early user and complete community quests, rewards are very likely... Currently multiple quests live on @crew3xyz, @Quest3_xyz, @Pyme_team, below all the links: https://rocifi.crew3.xyz/questboard https://app.quest3.xyz/RociFi https://pyme.team/quests/rocifi-mint-your-nfc-on-rocifi

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