2.4 Credit Contract

Based on cNFT, CreDA is introducing a new contract form for DeFi, the ‘credit contract’. Individual parties to the contract will be holders of the cNFTs. The content of the credit contract is stipulated by a smart contract. Applicable scenarios for the use of a Credit contract include, but are not limited to:

Scenario 1: Zero Collateral Loans

The lender can borrow a certain amount from another person or from a fund pool through a credit contract and pay the interest and principal in accordance with the terms in the credit contract.

Scenario 2: Credit Insurance

The insurer does not need to pay a deposit for the insurance in advance. After underwriting matters are settled, the insurer will then pay/collect related claims and insurance fees in accordance with the terms in the credit contract.

All behavioral data in credit contracts will be automatically captured by the CreDA Credit Oracle and used as a key factor in calculating dynamic credit ratings.