DeFi “Passport” Will Allow Anyone To Get A Cryptocurrency Loan
Arcx has announced the launch of a new version of “DeFi Passport” Sapphire v3, which allows cryptocurrency users to create and verify their online reputation under a pseudonym.
Sapphire v3 was announced on June 2. Passport will rate users on a scale of 0 to 1000. It stimulates the creation of reputation and provides an online identification in DeFi.
Arcx argues that “protocols should treat every user the same”. But sometimes there will be preference for wallet size, institutional support, or KYC limitation.
The company hopes that this passport will be integrated into many DeFi protocols. Sapphire will allow projects to offer users with high credit ratings “low collateral loans and high yielding farms”. In this way, Sapphire can fuel the growth of the emerging DeFi-based undercollateralized lending sector.
Sidney Powell, CEO and co-founder of Maple Finance’s institutional undersecured loan protocol, told Cointelegraph that “the Arcx passport will help bring such loans closer to retail DeFi users.”
He has no doubts that this will have a positive effect on the lending industry and added that Sapphire’s passport should take into account the “availability” of credit.
In addition, Arcx hopes to evaluate individual scores on a number of criteria. These include the Airdrop Score and Yield Farming Score, which assess the likelihood that an address is contained on remote or fermented tokens in the long run. And also “Governance Score”, which evaluates the likelihood of an address’s participation in on-chain governance.