Credit network

Based on the flow of funds between wallet addresses, the credit oracle helps the credit NFT (cNFT) to establish a Metaverse Credit Network (cNetwork). The function of the cNetwork is to record the credit relationship between users without direct revenue management. Through the cNetwork, the connections between various cNFTs can be analyzed. Users connected through the cNetwork can opt in to act as Guarantors for loans taken by individuals within their cNetwork (similar to off-chain community cooperatives). Acting as a Guarantor will benefit a user’s credit score whilst also receiving a fee for their service. Guarantors will have flexibility in the scope and level of support they wish to provide:

• Ability to create White & Blacklist of individuals they guarantee

• Set minimum credit score limits on population of individuals they will guarantee

• Set maximum caps on the amount they will cover as a guarantor

With the expansion of the cNetwork, the CreDA Credit Oracle will provide a higher credit rating. The more users the cNetwork reaches, the higher the utilization rate of the user's credit limit, and the greater the chance of benefiting from participating as a Guarantor.

Efficient 500 Credit Score means that users with a Credit Score of 500 or more will appear in your Credit network. "Layer1" is a user with whom you have a one-tier relationship, and "Layer2" is a user with whom you have a two-tier relationship. A Credit Loan is the amount value you can borrow.

Example:

If person A acts as a guarantor for person B and B does not repay his loan then A would be asked to step in and cover. If neither of both repay, then both credit scores will be impacted (default event), plus person A cNFT would be liquidated along with any CREDA balance on it.