The new crypto project is trying to add a little more credibility to the usually “unreliable” decentralized finance market.
ARCx unveiled its new “DeFi Passport” on Tuesday. With DeFi Passport, users can leverage their online activity to prove their creditworthiness and thus gain additional benefits across various crypto protocols – similar to how high credit ratings can help investors get lower rates.
The project has received the support of a number of major investors in the crypto market, including Dragonfly of the Capital and scalar capital. These crypto funds pledged $ 1.3 million in a recent round for the firm, along with LedgerPrime. To date, the project has raised $ 8.2 million.
The user’s passport rating will be based on a scale of 0 to 999, with a rating of 999 being “the most profitable,” according to a press release.
In an interview with The Block, ARCx founder Kerman Kohli said projects could use the product to offer higher levels of distribution or higher leverage in the DeFi era. “You can create a crop cultivation strategy targeting only the users with the highest score,” he said.
“Going forward, the vision is to make ARCx DeFi Passport and Credit Score a key Lego building block in decentralized finance,” it said. “Beyond the initial proof of concept with the ARCx Credit Score, the possibilities for pseudonymous profiling and personality scoring based on decentralized online activity are endless.”