2.3.1 Features of Credit NFTs

1.Scalable

Credit NFTs (cNFT) can communicate with multiple operating interfaces, making themselves accessible to, and interoperable with, a wide variety of DeFi protocols. If some portion or function of the cNFT is being utilized, the protocol, when given permission, will write status information informing other DeFi protocols regarding the usage status of the various parts of the cNFT credit quota. This information is used to assess the risk of the cNFT’s remaining, unutilized credit in real-time.

2. Upgradable

To incentivize loyal users in the CreDA ecosystem, the cNFT will be upgradeable. When the credit rating meets certain requirements, users can pay CREDA tokens to upgrade their cNFT. The higher the cNFT's credit rating, the more rights and privileges it has, and the easier it is to get preferential terms from DeFi protocols.

3. Metaverse 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.