Credit Score Methodology
Cred Protocol analyzes on-chain data to generate credit scores that reflect the financial behavior and trustworthiness of blockchain addresses. Our scoring model evaluates multiple dimensions of wallet activity to produce a comprehensive assessment.Scores range from 300 to 1000, similar to traditional credit scoring systems. Higher scores indicate stronger on-chain financial behavior.
Credit Factors
Our scoring model considers several key factors when evaluating an address. Each factor contributes to the overall score based on its relevance to creditworthiness.Borrowing History
Track record of borrowing and repayment across DeFi protocols
Wallet Composition
Diversity and distribution of assets held in the wallet
Wallet Health
Current financial standing and risk exposure
Interactions
Protocol usage patterns and on-chain activity
Trust
Identity attestations and reputation signals
New Credit
Recent borrowing activity and credit utilization changes
Factor Breakdown
Borrowing History
Your borrowing history reflects how you’ve managed debt obligations on-chain. This factor examines your track record with lending protocols to understand your repayment behavior.What we look at
What we look at
- Loan repayment patterns across DeFi protocols
- Historical liquidation events
- Duration and consistency of borrowing activity
- Repayment timing relative to loan terms
Why it matters
Why it matters
A strong borrowing history demonstrates responsible credit management. Addresses with consistent repayment behavior and no liquidations signal lower risk to potential lenders.
Wallet Composition
Wallet composition evaluates the structure and diversity of your on-chain portfolio. A well-balanced portfolio suggests financial sophistication and stability.What we look at
What we look at
- Asset diversity across token types
- Balance distribution between different protocols
- Stablecoin holdings relative to volatile assets
- Long-term holdings versus trading activity
Why it matters
Why it matters
Diversified portfolios indicate thoughtful financial planning. Addresses concentrated in single assets or highly volatile positions may represent higher risk profiles.
Wallet Health
Wallet health measures your current financial standing and risk exposure across DeFi positions. This provides a real-time view of your creditworthiness.What we look at
What we look at
- Current collateralization ratios
- Health factors across lending protocols
- Distance from liquidation thresholds
- Overall leverage exposure
Why it matters
Why it matters
Healthy positions with conservative collateralization demonstrate prudent risk management. Addresses operating close to liquidation thresholds present higher risk profiles.
Interactions
Interactions capture your engagement with the broader blockchain ecosystem. Active participation in reputable protocols contributes positively to your score.What we look at
What we look at
- Protocol diversity and usage breadth
- Transaction frequency and patterns
- Smart contract interaction history
- Ecosystem participation across chains
Why it matters
Why it matters
Meaningful on-chain activity demonstrates genuine ecosystem participation. Addresses with rich interaction histories across trusted protocols establish stronger credibility.
Trust
Trust signals come from identity attestations and reputation mechanisms that verify the legitimacy and standing of an address.What we look at
What we look at
- ENS domain ownership and history
- Gitcoin Passport score and stamps
- POAP attendance tokens
- Other on-chain attestations
Why it matters
Why it matters
Identity attestations provide social proof and verification. Addresses with established on-chain identities and community participation are more trustworthy.
New Credit
New credit examines recent borrowing activity to identify changes in credit-seeking behavior. Sudden increases in borrowing may indicate changing risk profiles.What we look at
What we look at
- Recent loan originations
- Changes in credit utilization
- New protocol onboarding
- Velocity of borrowing activity
Why it matters
Why it matters
Stable, gradual credit usage indicates consistent financial behavior. Rapid increases in borrowing activity may signal increased risk.
Feature Selection
Our scoring model uses machine learning to identify the most predictive signals from on-chain data. The feature selection process ensures that scores are:1
Data-Driven
Features are selected based on their statistical correlation with creditworthy behavior, not arbitrary assumptions.
2
Resistant to Gaming
The model considers complex patterns that are difficult to artificially manipulate, ensuring authentic assessment.
3
Continuously Refined
Feature weights are regularly updated based on new data and observed outcomes to maintain accuracy.
Multi-Chain Analysis
Cred Protocol aggregates data across multiple blockchain networks to build a complete picture of on-chain activity.| Network | Data Sources |
|---|---|
| Ethereum | Lending, DEX, NFTs, Identity |
| Polygon | Lending, DEX activity |
| Arbitrum | DeFi positions |
| Optimism | Protocol interactions |
| Base | Ecosystem activity |
| + More | Additional L2s and sidechains |
Improving Your Score
While we don’t reveal specific weights to prevent gaming, genuine positive financial behavior is always rewarded:Maintain Healthy Positions
Keep collateralization ratios well above minimum thresholds
Build History
Consistent activity over time establishes stronger track records
Diversify Thoughtfully
Spread activity across reputable protocols and asset types
Establish Identity
Connect identity attestations like ENS and Gitcoin Passport