Lucia Protocol
  • Welcome to Lucia Protocol
  • Introduction
    • Lucia Protocol
  • PRODUCT FEATURES
    • Features Overview
  • Attribution Credit Scoring System
  • Low Collateralized Ratio (100%)
  • Enhanced Privacy with Zero Knowledge Proofs
  • Default Protection Insurance
  • Lender & Borrower Reward System
  • Virtual Credit Card
  • Flash Loans
  • SYSTEM OVERVIEW
    • Tokenomics
  • The LUCI Token
  • The LCI Token
  • The stLCI Token
  • Barns and Sheds
  • Silos
  • Plots
  • Protocol Owned Liquidity
  • The Treasury
  • System Functionality
    • Borrower Operations
      • Borrowing Fees
  • Lender Operations
  • Silo Operations
  • Redemption Mechanism
  • Credit Reputation
  • Liquidations
  • Credit Default Risk
    • CDI Architecture
    • Smart Contract-based Architecture of CDI System
  • Risk Management
  • Insurance Claims & Entitlements
  • Governance & Investments
  • Rewards System
    • Lenders
  • Borrowers
  • Token Rewards
  • SUMMARY
    • Conclusion
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Attribution Credit Scoring System

PreviousFeatures OverviewNextLow Collateralized Ratio (100%)

Last updated 1 year ago

Lucia Protocol introduces an innovative Attribution Credit Scoring System, engineered to deliver an accurate and comprehensive assessment of borrowers' creditworthiness. Unlike traditional models that heavily rely on a singular data set, Lucia's system adopts a multi-dimensional approach by amalgamating both on-chain and off-chain data.

The On-chain Score is computed by aggregating key parameters such as users' transaction history and interactions within the blockchain network. This rich layer of data offers a granular view into users' financial activities and risk profiles, thereby augmenting the reliability of the credit evaluation.

On-Chain Score Formula:

In addition to on-chain data, Lucia's credit scoring mechanism incorporates off-chain sources, delving into external financial data such as credit history and employment records. By considering a broader range of financial activities and behaviors, the mechanism forms a complete picture of borrowers' financial standing.

Off-Chain Score Formula:

Combined Credit Score Formula:

The integration of on-chain and off-chain data results in a comprehensive overview that minimizes reliance on a single data source. Consequently, Lucia's Attribution Credit Scoring System ascertains creditworthiness with a higher degree of accuracy.

Where w1 and w2 are weights assigned to on-chain and off-chain scores, respectively.