Why did Donut choose to develop ecologically in Polygon and Polkadot?
Let’s first understand what Donut does. We have introduced Donut in detail in the previous article, please click on the link to view
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.
Looking back at the first half of 2021, blockchain security incidents occurred frequently. In the first half of 2021, there were 78 well-known security incidents in the entire blockchain ecosystem, involving 50 DeFi security incidents, 2 wallet security incidents, and 3 public chain security incidents. , 6 cases of exchange security and 17 other security-related cases, with a total loss of more than 1.7 billion US dollars.
It leads to a large number of hacker events.Due to the loopholes in the smart contract of the project, hackers can make use of these loopholes to obtain a lot of profits. At the same time, a small number of project parties run away.
From the above hacking incidents that in decentralized finance, project security management and compliance are indispensable. Users urgently need a set of tools to avoid capital risks and reduce asset losses.
Users can obtain a risk report in a very short time, and at the beginning of each risk report, a summary will be provided, which includes the address, owner’s name (if determined), the type of cryptocurrency, and the balance of the original token (such as ETH, BSC, Polkadot) and the balance of all supported tokens (such as usdt, bat, comp, etc.).
When generating reports, the Donut platform checks a variety of credit evaluation algorithms and risk analysis scenarios. It also identifies whether the address is directly or indirectly risky (e.g., an address belonging to a hacker or an address on the sanctions list).
BCS (blockchain credit score) BCS is a number between 0 and 100, reflecting the risk score of crypto activities on the wallet address. Around BCS, we can observe which types of risk indicators have the greatest impact on the overall risk score. For some risk indicator addresses, additional information is provided in the report — showing the list of sanctions where the address is located and when the address is blacklisted.
Why Polygon？
With more than 350 DApps, DeFi and NFT applications have become the mainstream on Polygon, and the speed of Polygon’s development has exceeded everyone’s imagination.
According to Polygon’s official website, Polygon currently brings together applications and infrastructure such as DeFi, NFT, wallets, oracles, and decentralized autonomous organizations, including Aave, a large DeFi lending agreement, SushiSwap, a decentralized exchange, and automated market services Curve, On-chain aggregation exchange 1inch, etc.; NFT projects include Opensea, the world’s largest NFT digital art exchange, and NFT virtual game Decentraland; oracles include the leading oracle projects Chainlink, AP13, etc.; digital wallets include MetaMask, Maizi Wallet, and Fortmatic And other applications.
Credit risk assessment - data is credit data
As can be seen from Polygon’s ecological project, the project’s coverage rate is very high, and the data dimensions are rich, which helps to increase the scope of use of standard scoring. According to the US credit investigation experience and the credit risk scoring model, the basic condition is to cover enough users. The modeling dimensions are relatively uniform, and the integrity of individual data is high. And Polygon’s ecological project can form a complete data ecology. In the Polygon ecosystem, Donut can get rich real values and form credit risk assessment reports that are beneficial to individuals.
Why Polkadot？
Polkadot is an excellent project in the cross-chain field, and many ecological projects continue to migrate to the Polkadot ecosystem.
Polkadot’s characteristics and advantages in parachain slots, processing decentralized applications, and data services provide great support for subsequent innovations in a large number of projects combined with DeFi Lego.
After all, in the early days of Polkadot’s DeFi ecology, based on the card slot auction logic, liquid betting may undoubtedly be one of the most direct demand and one of the first tracks to inject sufficient funds and volume into the entire ecology, and once the basic Lego The system is established and complete, and developers will develop innovative financial products on this basis.
Donut Protocol believes that the establishment of a credit information sharing mechanism, decentralized processing of scattered data, avoids the “information island” effect, ecological big data is the raw material of the Donut platform, and the full integration of ecological big data is whether the Donut platform can truly exert its effectiveness. The essential. Donut expects to use big data to break space boundaries, break industry barriers, connect related platforms, and promote the integration, sharing and comprehensive management of credit information.
In fact, it can be said that the ecological data of Polygon and Polkadot are a very good complement to each other. As DeFi agreements become more abundant and complete, there should be more risk hedging mechanisms in the future, whether it is options, futures, insurance, or even more complex or structured derivatives, the ways for users to avoid risks will gradually increase. Donut provides users with a comprehensive credit risk assessment system of Defi. Through Donut, users can browse the entire Defi user portrait and fund flow dynamics. Donut will become a powerful tool for users to avoid capital risks in the future.
You can get to know more about Donut:
Website: Http://donut.global
Twitter: @donutprotocol
Medium: https://medium.com/@donutprotocol
Github: https://github.com/DonutProtocol/Donut
