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Credit Risk & Lending

DeFi with trust + a bridge to IRL financial products
One of the most important use-cases of Atadia's data capability is Web3 credit risk & reputation.
We are keen on exploring the potential of DeFi beyond trustless protocols and the opportunities to bridge token-era tech with existing IRL financial products that most people are already familiar with. Reputation, a concept related to creditworthiness, is also a missing layer for a working Web3 economy.

Leading Web3 Credit Risk

Atadia leads the Credit Risk effort on Solana with the support from the Solana Foundation 🤝
With an aligned goal to enable more financial use-cases and adoption on open L1s, we were awarded a grant from the Solana Foundation to scale credit risk on Solana 🎊🤗.

Our view on the credit industry

We envision a world where anyone can get access to capital instantly with or without collateral as long as his/her data footprints allow it.
On-chain profile data will become an important source of credit information that help enable new financial opportunities for many.
IRL, today millions are still unable to access capital due to "thin file" or "no file" problem with IRL credit bureaus. Atadia will be the first to build robust foundational data layers and tools to help onboard them.
For Web3, lending has so far been fueled largely by overcollateralization. While DeFi and NFTfi innovation is truly novel, we believe that Web3 credit risk is also a key enabler for the next chapter of DeFi and a "bridge" to IRL side of things like CeDeFi or CeFi.

Our approach to Web3 Credit

Web3 Identity as it relates to credit
We operate based on 3 principles:
1. Identity management
2. Machinery
3. Collective Input
Identity is a foundational element of credit since it ties everything about a user together. Our stance is we allow pseudonymous identities to flourish and allow users to maintain/cultivate their identities as they go.
Atadia has built the capability to provide instant, no KYC, zero-collateral loans with underwriting criteria guided by ML credit scoring model trained on $300,000 worth of zero-collateral loans we bootstrapped ourselves through Lending Lab. Current default rate (volume basis) sits at around 3-4%.
Team Atadia, AtaDAO members, our DeFi partners, and Web3 supporters all contribute to additional data points to help aid credit score modeling, discourage nonpayment, and reward good credit individuals.

Our articles on credit risk

Writing these Building Web3 Credit Scoring Capability series is part of our effort towards helping Web3 credit flourish faster and safer with more knowledge about risks going around.
  1. 1.
    ​Part I​
  2. 2.
    ​Part II​