RociFi — a decentralized credit economy with blockchain-based, non-transferable credit scores, designed to facilitate zero- or under-collateralized lending. At its core, the protocol uses on-chain data, machine learning and credit risk management to efficiently and profitably provide undercollateralized loans through the blockchain. This innovative approach aims to usher in a new wave of capital efficiency and revenue growth in DeFi lending.
What is special about RociFi?
RociFi consists of an on-chain lending protocol and a credit score. The main smart contracts that make up the RociFi lending architecture are the bond, the investor, the payment, the collateral manager and the revenue manager.
Subjects of the credit protocol:
| Borrowers | participants who want to receive money from the protocol against a certain amount of collateral. |
| Lenders | participants who want to lend money to the protocol to earn fixed income by mining liquidity in liquidity pools (staking the ERC-20 LP token). |
| Liquidators | participants who want to earn money by paying off overdue loans and receiving collateral at a discount. |
Debt token (rUSDC, rUSDT, etc.): represents a lender's stake in a particular credit pool. It is an ERC-20 token with an elastic supply that can be minted and burned on demand. It is managed by protocol administrators or DAOs.
Bond: represents a loan. It is a non-fungible ERC-1155 token that corresponds to a specific loan and is parameterized by principal amount, collateral type and amount and loan maturity date. It is managed by protocol administrators or DAOs.
Asset token: an ERC-20 token, used for borrowing (currently supports DAI, USDC, USDT stablecoins).
Collateral: ERC-20 token, allowed as collateral (currently supports ETH, WBTC).
The scoring oracle handles receiving credit scores from an off-chain service and executes scoring-sensitive logic. It consists of NFCS, ScoreDB and CreditScore components.
Credit score (NFCS)
To borrow from RociFi, users must complete a credit risk assessment by using the CRS system. To receive CRS, the user must first generate their Non-fungible Credit Score (NFCS) token.
The NFCS contains the user's address, RociFi borrowing history, CRS updates and will be immutable once created. RociFi NFCS is a credit card that catalogs a user's online behavior on an easily interpretable scale from 1 to 10; where 1 is the most creditworthy and 10 is the least creditworthy.