Donut Protocol — Hello world

In traditional financial lending, the scale of credit endorsed loans is larger than that of asset endorsements. The bank builds a credit evaluation system that can determine the loan amount based on the user’s credit history and asset situation. However, in the current blockchain financial environment, due to the anonymous nature of blockchain technology, it is difficult to collect and investigate the credit information of lenders. Meanwhile, it lacks a complete credit database to establish a complete credit risk assessment system. Therefore, most of the DeFi projects use over-collateralized asset borrowing methods, which hinders many borrowers without enough mortgage assets. Also, for developing unsecured loans, an effective credit evaluation system is the most significant critical link.

With the development of decentralized identity technology, on-chain credit risk assessment does not reveal private information, which is bound to be the next DeFi hotspot. This project will deeply study the characteristics of credit risk and possible problems, establish a robust and compliant decentralized financial credit risk assessment system, quantitatively and effectively monitor the credit of individuals and institutions in the lending business, in order to improve the overall risk management of decentralized lending.

What is Donut Protocol?

Donut Protocol is an open financial credit facility platform that introduces multiple types of data sources, creates a new credit scoring mechanism for individuals and institutions, provides an open middleware framework for the entire DeFi ecosystem (ie credit market), and builds cutting-edge credit evaluation model. Donut Protocol will be built as one of the important credentials for credit and risk assessment to reduce the amount of over-collateralized loans, increase the user’s asset utilization rate, and provide opportunities for emerging DeFi solutions.

Why is Donut Protocol an open middleware framework?

The reliability of credit scores comes from the richness and authenticity of data sources. Donut adopts aggregation mode to increase the reliability of data.

In terms of authenticity, Donut will aggregate the evaluation data of different credit evaluation products and perform multiple evaluations of the data to improve the reliability of the score.

For the risk assessment model, Donut will accept the risk models provided by different users and companies. The risk assessment mode is the core part of the credit assessment model. All assessment data will be calculated through various types of risk assessment models, and the final risk score will be obtained comprehensively.

Donut Protocol credit analysis will allow lenders to design personalized products and services, and promote a wider range of loan product innovations to attract a larger and more diverse customer base. Donut Protocol has created a more trustworthy ecosystem and also provides incentives to participate in lending to improve the credit evaluation scores of users for multiple borrowing.

What’s Next?

Over the coming weeks we will release information regarding:

• Open job roles
• Platform, governance and token details
• Community involvement opportunities
• Ecosystem partnerships

if you have any interesting ideas, Please feel free to contact us.

Contact：Donutprotocol@gmail.com