ARCx is a decentralized scoring protocol that powers on-chain identity through the issuance of a DeFi Passport.
The first page, or element, in the DeFi Passport is an on-chain credit score. This initial score is issued to an identity based on an assessment of the address’ on-chain activity. More details on this metric and its assessment are on a dedicated Wiki page describing the Credit Score.
During Phase 1 of the launch, identities who have been issued their DeFi Passport can access ‘Passport Enabled Farms,' which exclusively offer high APYs that are incentivized by ARCx and our genesis launch partners.
With time, DeFi Passport holders will then be issued with a Credit Score which will mark the commencement of Phase 2. This Credit Score can then enable dynamic terms for borrowing depending on the borrower themselves.
The ARCx DeFi Passport is designed to be a staple of users and protocols in Decentralized Finance on multiple blockchains. Beyond the ARCx Credit Score constituting its first page, the applications are endless for the pseudonymous, decentralized profiling and assessment of identities based on on-chain activity.
In the near future, ARCx plans to continue to add more scores and pages to the DeFi Passport. These would include:
“Yield Farming Scores” that evaluates whether a farmer has a long-term mindset, which shows support for a protocol's long term growth---as opposed to farming and immediately selling. A higher Yield Farming score based on these parameters could potentially enable favorable APY to incentivize a higher quality and activist community.
“Airdrop Score” that evaluates whether an address on-chain holds airdrops---again, showing support for a protocol's long term growth---or immediately sells their tokens.
“Governance Score” that signals to protocols and builders how actively a user is involved in on-chain governance. Beyond metrics of activity in governance, the kinds of decisions a user makes on-chain and the nature of their governance in given protocol(s) could be very telling of motives and future behavior.
“Trader Scores” which determine the differences between bots and real identities to give different rates based on how a protocol wants to interact with a counterparty. For example, a DEX could enable lower trading fees for identities compared to that for bots