Ribbon Finance
  • Introduction to Ribbon Finance
  • Aevo
  • FAQ
    • General
    • DOV Deposits
    • DOV Withdrawals
    • DOV Trading and options
    • Ribbonomics
  • Dune dashboards
  • Contribute
  • Security
  • Ribbon Theta Vaults
    • Introduction to Theta Vaults
      • Strike Selection and Expiry
      • Options Architecture
      • Options Settlement
      • Auctions
      • Risk profile
      • Fees
    • Theta vaults architecture
    • User guides
      • How to deposit
      • How to withdraw
      • How to pause and resume
      • How to stake, unstake vault shares and claim rewards
      • How to transfer vault positions
      • How to participate in Paradigm Auctions
      • How to redeem oTokens
  • RIBBON EARN
    • Introduction to Ribbon Earn
    • Ribbon Earn USDC
      • Risk-Free Rate
      • Twin win strategy
      • Vault specifications
      • Eligibility
      • Fees
    • Ribbon Earn stETH
      • What is a dolphin strategy?
      • Vault specifications
      • Risk profile
      • Fees
  • RIBBON LEND
    • Introduction to Ribbon Lend
      • Yields from unsecured lending
      • No lockups
        • Pool status
        • Default
      • Off-chain enforcement / credit underwriting
      • Built-in insurance
      • Fees
  • ribbon treasury
    • Introduction to Ribbon Treasury
      • Why Ribbon Treasury?
      • Partners
      • How to get involved
  • Ribbonomics
    • Overview and RBN tokenomics
      • Vote-Escrowed RBN
      • Fee Collection and Distribution
      • Liquidity Gauges and RBN Emissions
      • Gauge Weight Voting
      • Bribes
        • Guide to Boost Bribing
          • For Bribers
          • For veRBN Holders
      • Upgrades
    • How to lock RBN, boost and claim protocol revenues
  • Developers
    • Deployed Contracts
    • Ribbon Subgraph
Powered by GitBook
On this page

Was this helpful?

  1. RIBBON LEND
  2. Introduction to Ribbon Lend

Off-chain enforcement / credit underwriting

PreviousDefaultNextBuilt-in insurance

Last updated 2 years ago

Was this helpful?

Offering unsecured lending on-chain requires a developed off-chain process for credit underwriting (including KYC/AML) and legal recourse. As we have already done with , we are collaborating with .

Credora aggregates information from custody venues, CEX spot / derivatives positions, on-chain positions across >5 chains, bank accounts, and other sources to get a comprehensive picture of a market maker’s credit worthiness. Most of this can be monitored in real-time, so a borrower’s credit worthiness can change on a minute by minute basis. This real-time info comprises ~50% of a borrower’s credit rating weight. The other ~50% are more traditional methods such as looking into borrow history and lending relationships, custody processes, ROE, ROA, max drawdowns, solvency ratio, etc. See for more information on credit methodology. Credora has 16 DeFi integrations, 25 CeFi integrations, and +100 borrower/lender institutions onboarded so far. Credora has helped facilitate $785M in loans and monitors $3.85B to date.

It is important to note that although Credora's ratings are representative and timely, they should in no way be interpreted as an invitation to invest in a particular pool or as a "guarantee" of successful investment. They are to be considered solely as indications of the borrowers' creditworthiness.

Ribbon Earn
Credora
Credora docs