PrivaCRE: Privacy-Preserving Credit Scoring for DeFi

Bringing Real-World Credit Scoring to DeFi Without Compromising Privacy

Live Demo • PPT • Video Demo

🔗 Quick Links

Live Application

website: https://privacre.netlify.app

Smart Contracts (Tenderly Virtual TestNet)

PrivaVault: 0x49BdEEcB489E037C0f6928dEe6a043908b8d8877
Network Explorer: Tenderly Dashboard
RPC URL: https://virtual.sepolia.eu.rpc.tenderly.co/7611135a-8515-41d7-8146-9390be57f949

Repository

CRE Workflow: /PrivaCRE/my-workflow/
Smart Contracts: /contracts/

🎯 Overview

PrivaCRE (Privacy-Preserving Credit Scoring) revolutionizes DeFi lending by enabling under-collateralized loans based on verifiable creditworthiness while maintaining complete user privacy. By combining Chainlink's Compute Runtime Environment (CRE), World ID, and AI-powered analysis, we solve DeFi's biggest barrier to adoption: over-collateralization.

The Problem

DeFi Today: Borrow $100 → Lock $150+ collateral (150%+ over-collateralization)
Traditional Finance: Credit scores enable under-collateralized lending but expose sensitive data
Result: DeFi is inaccessible to 99% of people who can't afford massive collateral

Our Solution

PrivaCRE generates privacy-preserving credit scores using:

✅ Real bank data via Plaid API
✅ Secure computation in Chainlink CRE
✅ AI analysis with Groq (Llama 3.1 70B)
✅ Sybil resistance via World ID
✅ Zero data exposure - all processing in secure enclave

Result: Borrow $100 with just $105 collateral (105%) if you have good credit!

GALLERY

Landing Page

DashBoard

Available Loans

PrivaCRE Lending Vault

CRE Orchestration Brain

Confidential Data Bridge

🏗️ Architecture

┌─────────────────────────────────────────────────────────────────┐
│                         USER INTERFACE                          │
│  Next.js 15 • React 19 • TailwindCSS • RainbowKit • Wagmi     │
└────────────────────────┬────────────────────────────────────────┘
                         │
                         ▼
┌─────────────────────────────────────────────────────────────────┐
│                    IDENTITY & DATA ACCESS                       │
│  • World ID (Sybil Resistance)                                 │
│  • Plaid API (Bank Connectivity)                               │
│  • Wallet Connection (Ethereum)                                │
└────────────────────────┬────────────────────────────────────────┘
                         │
                         ▼
┌─────────────────────────────────────────────────────────────────┐
│              CHAINLINK CRE (SECURE COMPUTATION)                 │
│  ┌─────────────────────────────────────────────────────────┐  │
│  │  1. Fetch Bank Data (Plaid API)                         │  │
│  │  2. Sanitize Data (Remove PII)                          │  │
│  │  3. AI Analysis (Groq LLM)                              │  │
│  │  4. Generate Credit Score (0-100)                       │  │
│  │  5. Publish On-Chain (Smart Contract)                   │  │
│  └─────────────────────────────────────────────────────────┘  │
└────────────────────────┬────────────────────────────────────────┘
                         │
                         ▼
┌─────────────────────────────────────────────────────────────────┐
│                    BLOCKCHAIN LAYER                             │
│  • Smart Contracts (Solidity)                                  │
│  • PrivaVault (Lending & Collateral)                           │
│  • Credit Score Storage (On-Chain)                             │
│  • Tenderly Virtual TestNet                                    │
└─────────────────────────────────────────────────────────────────┘

✨ Key Features

🔐 Privacy-First Design

Zero Data Exposure: All sensitive data processed in Chainlink's secure enclave
PII Removal: Names, addresses, account numbers stripped before analysis
Zero-Knowledge Proofs: Credit scores verifiable but not traceable
User Control: You own your data, we never see it

🎯 Real Credit Scoring

Actual Bank Data: Connects to real financial history via Plaid
AI-Powered Analysis: Groq's Llama 3.1 70B analyzes spending patterns
Comprehensive Metrics: Payment history, cash flow, transaction patterns
Accurate Scores: Based on real behavior, not just crypto holdings

🛡️ Sybil Resistance

World ID Integration: One human = one credit score
Orb Verification: Biometric proof of personhood
Nullifier Hashing: Prevents duplicate scores
Attack Prevention: Impossible to game the system

💰 Better Lending Rates

Dynamic Collateral: 105% - 150% based on credit score
Tiered System: Higher scores = better rates
Under-Collateralized: Borrow more with less collateral
Competitive APRs: 4.5% - 6.8% based on tier

🌐 Cross-Chain Compatible

Multi-Chain Support: Ethereum, Arbitrum, Base, Optimism
Portable Scores: Credit follows you across chains
Chainlink CCIP: Secure cross-chain messaging
Universal DeFi: Works with any protocol

🌐 Deployed Contracts

Tenderly Virtual TestNet (Sepolia)

Network Details:

Network: Tenderly Virtual TestNet
Chain ID: 11155111 (Sepolia)
RPC URL: https://virtual.sepolia.eu.rpc.tenderly.co/7611135a-8515-41d7-8146-9390be57f949
Explorer: Tenderly Dashboard

Deployed Contracts:

Contract	Address	Explorer Link
PrivaVault (Main Lending Vault)	`0x49BdEEcB489E037C0f6928dEe6a043908b8d8877`	View on Tenderly
MockUSDC (Test Token)	`0x5432bed5E495f625640bc6210087D07C14DF5FE3`	View on Tenderly
MockPriceFeed (Oracle)	`0xb8d323B1F3524d2e634B9Fa2537425AD39712140`	View on Tenderly
CRE Oracle	`0xAd0799D4D6564c945C448D8BcFA890c41e111A98`	View on Tenderly

Deployment Date: March 7, 2026

Add to MetaMask:

Network Name: Tenderly Virtual TestNet
RPC URL: https://virtual.sepolia.eu.rpc.tenderly.co/7611135a-8515-41d7-8146-9390be57f949
Chain ID: 11155111
Currency Symbol: ETH
Block Explorer: https://dashboard.tenderly.co/explorer/vnet/7611135a-8515-41d7-8146-9390be57f949

🚀 Quick Start

Prerequisites

Node.js >= 20.0.0
npm or yarn
MetaMask or compatible wallet
World ID app (for verification)

Installation

# Clone the repository
git clone https://github.com/LSUDOKO/PrivaCRE.git
cd PrivaCRE

# Install dependencies
npm install --legacy-peer-deps

# Copy environment variables
cp .env.example .env

# Configure your .env file with:
# - Plaid API credentials
# - Groq API key
# - World ID app ID
# - Tenderly RPC URL
# - WalletConnect project ID

Environment Setup

Edit .env with your credentials:

# Plaid Configuration (Get from https://dashboard.plaid.com)
PLAID_CLIENT_ID=your_plaid_client_id
PLAID_SECRET=your_plaid_secret
PLAID_ENV=sandbox

# Groq AI (Get from https://console.groq.com)
GROQ_API_KEY=your_groq_api_key

# World ID (Get from https://developer.worldcoin.org)
NEXT_PUBLIC_WORLD_ID_APP_ID=app_your_app_id
NEXT_PUBLIC_WORLD_RP_ID=rp_your_rp_id

# Tenderly Virtual TestNet
NEXT_PUBLIC_TENDERLY_RPC=https://virtual.sepolia.eu.rpc.tenderly.co/your_vnet_id
RPC_URL_SEPOLIA=https://virtual.sepolia.eu.rpc.tenderly.co/your_vnet_id

# WalletConnect (Get from https://cloud.walletconnect.com)
NEXT_PUBLIC_WALLETCONNECT_PROJECT_ID=your_project_id

# Private Key (for contract deployment)
PRIVATE_KEY=your_private_key_here

Run Development Server

npm run dev

Open http://localhost:3000 in your browser.

Deploy Smart Contracts

# Compile contracts
npx hardhat compile

# Deploy to Tenderly Virtual TestNet
npx hardhat run scripts/deploy.js --network tenderly

# Update contract addresses in src/lib/contract-addresses.json

Run CRE Workflow Simulation

cd PrivaCRE/my-workflow

# Install CRE CLI (if not already installed)
npm install -g @chainlink/cre-cli

# Configure secrets
cp secrets.yaml.example secrets.yaml
# Edit secrets.yaml with your API keys

# Run simulation
cre workflow simulate

# Expected output:
# ✓ Plaid data fetched
# ✓ Data sanitized
# ✓ AI analysis complete
# ✓ Credit score: 87
# ✓ Transaction submitted

📖 How It Works

Step 1: Identity Verification

// User verifies with World ID
<IDKitWidget
  app_id={WORLD_ID_APP_ID}
  action="verify-identity"
  verification_level={VerificationLevel.Orb}
  onSuccess={handleVerification}
/>

What Happens:

User scans QR code with World ID app
Biometric verification (Orb)
Nullifier hash generated (prevents duplicates)
Verification stored on-chain

Step 2: Credit Analysis Trigger

// Frontend triggers CRE workflow
const response = await fetch('/api/cre', {
  method: 'POST',
  body: JSON.stringify({ userAddress: walletAddress })
});

What Happens:

User clicks "Start Credit Analysis"
Frontend calls backend API
Backend triggers Chainlink CRE workflow
Real-time progress updates shown to user

Step 3: Secure Data Processing (CRE)

// PrivaCRE/my-workflow/main.ts
export async function main(input: WorkflowInput): Promise<WorkflowOutput> {
  // 1. Fetch bank data from Plaid
  const plaidData = await fetchPlaidTransactions(input.userAddress);
  
  // 2. Sanitize data (remove PII)
  const sanitized = {
    transactions: plaidData.transactions.map(tx => ({
      amount: tx.amount,
      date: tx.date,
      category: tx.category,
      // NO: name, account_id, location, etc.
    })),
    summary: {
      totalIncome: calculateIncome(plaidData),
      totalExpenses: calculateExpenses(plaidData),
      avgBalance: calculateAvgBalance(plaidData),
      // NO: account numbers, SSN, addresses
    }
  };
  
  // 3. AI analysis with Groq
  const aiAnalysis = await analyzeWithGroq(sanitized);
  
  // 4. Calculate credit score
  const creditScore = calculateScore(aiAnalysis);
  
  // 5. Store on-chain
  await storeOnChain(input.userAddress, creditScore);
  
  return { creditScore, analysis: aiAnalysis };
}

What Happens:

All processing in Chainlink's secure enclave
Bank data fetched directly from Plaid
PII stripped out completely
AI analyzes anonymized patterns
Score stored on blockchain
Your raw data never leaves the enclave

Step 4: On-Chain Storage

// contracts/PrivaVault.sol
function updateCreditScore(address user, uint256 score) external {
    require(msg.sender == creOracle, "Only CRE can update");
    require(score <= 100, "Invalid score");
    
    userScores[user] = score;
    emit CreditScoreUpdated(user, score, block.timestamp);
}

What Happens:

CRE calls smart contract
Credit score stored on-chain
Event emitted for indexing
Score becomes verifiable asset

Step 5: Lending with Better Rates

// User can now borrow with reduced collateral
const collateralRatio = creditScore >= 90 ? 105 : 
                       creditScore >= 80 ? 115 : 
                       creditScore >= 70 ? 125 : 150;

// Borrow $1000 with just $1050 collateral (if score >= 90)

What Happens:

Higher credit score = lower collateral requirement
Dynamic interest rates based on risk
Automated liquidation protection
Transparent, verifiable on-chain

Interact with Deployed Contracts

You can interact with the deployed contracts directly:

// Using ethers.js
import { ethers } from 'ethers';
import PrivaVaultABI from './artifacts/contracts/PrivaVault.sol/PrivaVault.json';

// Connect to Tenderly Virtual TestNet
const provider = new ethers.JsonRpcProvider(
  'https://virtual.sepolia.eu.rpc.tenderly.co/7611135a-8515-41d7-8146-9390be57f949'
);

// Connect to PrivaVault contract
const vault = new ethers.Contract(
  '0x49BdEEcB489E037C0f6928dEe6a043908b8d8877',
  PrivaVaultABI.abi,
  provider
);

// Read user's credit score
const score = await vault.userScores('0xYourAddress');
console.log('Credit Score:', score.toString());

// Check available loan amount
const maxLoan = await vault.getMaxLoan('0xYourAddress');
console.log('Max Loan:', ethers.formatUnits(maxLoan, 6), 'USDC');

View on Tenderly:

🔧 Technology Stack

Frontend

Framework: Next.js 15.5.12 (React 19)
Language: TypeScript 5.x
Styling: TailwindCSS 3.4 + Framer Motion
Web3: RainbowKit + Wagmi + Viem
Animations: GSAP 3.12

Blockchain

Smart Contracts: Solidity 0.8.x
Development: Hardhat 2.19
Libraries: OpenZeppelin Contracts 5.0
Network: Tenderly Virtual TestNet (Sepolia)
Interactions: Ethers.js v6

Chainlink Integration

CRE (Compute Runtime Environment): Core secure computation
Workflow: TypeScript-based (PrivaCRE/my-workflow/)
CLI: @chainlink/cre-cli for simulation
Secrets: Managed via secrets.yaml

External APIs

Plaid: Bank account connectivity (v41.4.0)
Groq: AI inference (Llama 3.1 70B)
World ID: Sybil-resistant identity (v1.3.0)

Infrastructure

Hosting: Netlify (Frontend)
RPC: Tenderly Virtual TestNet
Monitoring: Tenderly Dashboard
CI/CD: GitHub Actions (planned)

📁 Project Structure

PrivaCRE/
├── contracts/              # Solidity smart contracts
│   ├── PrivaVault.sol     # Main lending vault
│   ├── CrestVault.sol     # Alternative vault
│   └── MockUSDC.sol       # Test token
│
├── PrivaCRE/              # Chainlink CRE workflow
│   ├── my-workflow/       # CRE workflow implementation
│   │   ├── main.ts        # Core workflow logic
│   │   ├── workflow.yaml  # Workflow configuration
│   │   └── config.*.json  # Environment configs
│   ├── project.yaml       # CRE project settings
│   └── secrets.yaml       # API keys (gitignored)
│
├── src/
│   ├── app/               # Next.js app directory
│   │   ├── api/          # API routes
│   │   │   ├── cre/      # CRE workflow trigger
│   │   │   ├── plaid/    # Plaid integration
│   │   │   └── worldid/  # World ID verification
│   │   ├── dashboard/    # Credit score dashboard
│   │   ├── lending/      # Lending interface
│   │   ├── bridge/       # Cross-chain bridge
│   │   └── auth/         # Authentication
│   │
│   ├── components/        # React components
│   │   ├── ui/           # UI components
│   │   └── layout/       # Layout components
│   │
│   ├── hooks/            # Custom React hooks
│   └── lib/              # Utilities & configs
│
├── scripts/              # Deployment & testing scripts
│   ├── deploy.js         # Contract deployment
│   ├── test-borrow.js    # Lending tests
│   └── simulate-workflow.js  # CRE simulation
│
├── docs/                 # Documentation
│   ├── HACKATHON_SUBMISSION_FORM.md
│   ├── TECHNICAL_ARCHITECTURE.md
│   ├── CRE_INTEGRATION_SUMMARY.md
│   └── ... (50+ docs)
│
├── .env.example          # Environment template
├── hardhat.config.js     # Hardhat configuration
├── package.json          # Dependencies
└── README.md            # This file

🎮 Usage Guide

For Users

Connect Wallet
- Click "Connect Wallet" on homepage
- Approve MetaMask connection
- Your address is now linked
Verify Identity
- Click "Verify with World ID"
- Scan QR code with World ID app
- Complete biometric verification
- One-time process per wallet
Generate Credit Score
- Navigate to Dashboard
- Click "Start Credit Analysis"
- Connect your bank via Plaid
- Wait 30-60 seconds for analysis
- View your credit score (0-100)
Borrow Funds
- Go to Lending page
- Enter desired loan amount
- See required collateral (based on score)
- Deposit collateral
- Receive loan instantly
Bridge Score (Optional)
- Navigate to Bridge page
- Select destination chain
- Pay bridge fee
- Score available on new chain

For Developers

Deploy Your Own Instance

# 1. Clone and install
git clone https://github.com/LSUDOKO/PrivaCRE.git
cd PrivaCRE
npm install --legacy-peer-deps

# 2. Configure environment
cp .env.example .env
# Edit .env with your credentials

# 3. Deploy contracts
npx hardhat compile
npx hardhat run scripts/deploy.js --network tenderly

# 4. Update contract addresses
# Edit src/lib/contract-addresses.json

# 5. Run development server
npm run dev

# 6. Test CRE workflow
cd PrivaCRE/my-workflow
cre workflow simulate

Integrate PrivaCRE

// Import credit score in your DeFi protocol
import { PrivaVault } from './contracts/PrivaVault.sol';

contract YourProtocol {
    PrivaVault public privaVault;
    
    function getLoanTerms(address user) public view returns (
        uint256 maxLoan,
        uint256 collateralRatio,
        uint256 interestRate
    ) {
        uint256 creditScore = privaVault.userScores(user);
        
        // Adjust terms based on credit score
        if (creditScore >= 90) {
            return (10000e6, 105, 450); // 105% collateral, 4.5% APR
        } else if (creditScore >= 80) {
            return (5000e6, 115, 520); // 115% collateral, 5.2% APR
        }
        // ... more tiers
    }
}

🔒 Security

Smart Contract Security

✅ OpenZeppelin battle-tested contracts
✅ Reentrancy guards on all functions
✅ Access control (Ownable, roles)
✅ Comprehensive testing suite
⏳ Professional audit (planned)

Data Privacy

✅ All processing in Chainlink CRE secure enclave
✅ PII removal before any analysis
✅ Zero-knowledge proofs for verification
✅ No data stored on our servers
✅ User controls all data access

Sybil Resistance

✅ World ID Orb verification
✅ Nullifier hash storage
✅ One score per human
✅ Duplicate prevention

API Security

✅ Secrets managed via CRE secrets.yaml
✅ API keys never exposed to frontend
✅ Rate limiting on all endpoints
✅ HTTPS only communication

📊 Credit Score Calculation

Factors Analyzed

Payment History (40%)
- On-time payments
- Missed payments
- Payment consistency
Cash Flow (30%)
- Income stability
- Expense patterns
- Savings rate
Account Health (20%)
- Average balance
- Overdrafts
- Account age
Transaction Patterns (10%)
- Spending categories
- Financial responsibility
- Risk indicators

Score Ranges

90-100: Exceptional - 105% collateral, 4.5% APR
80-89: Excellent - 115% collateral, 5.2% APR
70-79: Very Good - 125% collateral, 5.8% APR
60-69: Good - 135% collateral, 6.2% APR
<60: Fair - 150% collateral, 6.8% APR

Privacy Guarantees

❌ We DON'T see: Names, addresses, account numbers, SSNs
✅ We DO analyze: Transaction amounts, dates, categories (anonymized)
🔒 All processing: Inside Chainlink CRE secure enclave
🎯 Result: Credit score only, no raw data exposure

Planned Networks

⏳ Ethereum Mainnet
⏳ Arbitrum One
⏳ Base
⏳ Optimism
⏳ World Chain

🧪 Testing

Run Tests

# Smart contract tests
npx hardhat test

# Frontend tests (if implemented)
npm run test

# E2E tests
npm run test:e2e

# CRE workflow simulation
cd PrivaCRE/my-workflow
cre workflow simulate

Test Coverage

✅ Smart contract unit tests
✅ CRE workflow simulation
✅ Plaid integration tests
✅ World ID verification tests
⏳ Frontend component tests (planned)
⏳ E2E user flow tests (planned)

🤝 Contributing

We welcome contributions! Please see our Contributing Guide for details.

📄 License

This project is licensed under the MIT License - see the LICENSE file for details.

🙏 Acknowledgments

Built with support from:

Chainlink - CRE infrastructure and documentation
Worldcoin - World ID integration and sybil resistance
Plaid - Secure bank connectivity
Groq - Fast AI inference
Tenderly - Virtual TestNet infrastructure
OpenZeppelin - Secure smart contract libraries

🎯 Built For

Chainlink Convergence Hackathon 2026

Tracks:

🏆 Chainlink CRE (Primary)
🏆 Worldcoin Privacy Track

**Made with ❤️ for a more inclusive, privacy-preserving DeFi**

Name		Name	Last commit message	Last commit date
Latest commit History 28 Commits
.vscode		.vscode
PrivaCRE		PrivaCRE
artifacts		artifacts
cache		cache
contracts		contracts
cre-templates-main/starter-templates		cre-templates-main/starter-templates
cre-workflow		cre-workflow
deployments		deployments
docs		docs
scripts		scripts
src		src
.env.example		.env.example
.eslintrc.json		.eslintrc.json
.gitignore		.gitignore
DOCUMENTATION_ORGANIZED.md		DOCUMENTATION_ORGANIZED.md
LICENSE		LICENSE
QUICK_LINKS.md		QUICK_LINKS.md
README.md		README.md
SUMMARY.txt		SUMMARY.txt
complete-private-vault-setup.sh		complete-private-vault-setup.sh
demo-cre-workflow.sh		demo-cre-workflow.sh
deploy-to-netlify.sh		deploy-to-netlify.sh
fix-git-secrets.sh		fix-git-secrets.sh
fix-push.sh		fix-push.sh
force-rebuild.sh		force-rebuild.sh
hardhat.config.js		hardhat.config.js
netlify.toml		netlify.toml
next-env.d.ts		next-env.d.ts
next.config.mjs		next.config.mjs
package-lock.json		package-lock.json
package.json		package.json
postcss.config.mjs		postcss.config.mjs
quick-demo.sh		quick-demo.sh
quick-fix.sh		quick-fix.sh
redeploy-to-new-tenderly.sh		redeploy-to-new-tenderly.sh
simulate.sh		simulate.sh
simulation-results.json		simulation-results.json
tailwind.config.ts		tailwind.config.ts
test-ai.js		test-ai.js
test-conn.js		test-conn.js
test-e2e.sh		test-e2e.sh
test-loan-flow.sh		test-loan-flow.sh
test-plaid-link.html		test-plaid-link.html
test-plaid-setup.js		test-plaid-setup.js
test-rpc.sh		test-rpc.sh
test-worldid-setup.js		test-worldid-setup.js
test-worldid-state.html		test-worldid-state.html
tsconfig.json		tsconfig.json
tsconfig.tsbuildinfo		tsconfig.tsbuildinfo
verify-cre-requirements.sh		verify-cre-requirements.sh

Folders and files

Latest commit

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PrivaCRE: Privacy-Preserving Credit Scoring for DeFi

🔗 Quick Links

Live Application

Smart Contracts (Tenderly Virtual TestNet)

Repository

🎯 Overview

The Problem

Our Solution

GALLERY

Landing Page

DashBoard

Available Loans

PrivaCRE Lending Vault

CRE Orchestration Brain

Confidential Data Bridge

🏗️ Architecture

✨ Key Features

🔐 Privacy-First Design

🎯 Real Credit Scoring

🛡️ Sybil Resistance

💰 Better Lending Rates

🌐 Cross-Chain Compatible

🌐 Deployed Contracts

Tenderly Virtual TestNet (Sepolia)

🚀 Quick Start

Prerequisites

Installation

Environment Setup

Run Development Server

Deploy Smart Contracts

Run CRE Workflow Simulation

📖 How It Works

Step 1: Identity Verification

Step 2: Credit Analysis Trigger

Step 3: Secure Data Processing (CRE)

Step 4: On-Chain Storage

Step 5: Lending with Better Rates

Interact with Deployed Contracts

🔧 Technology Stack

Frontend

Blockchain

Chainlink Integration

External APIs

Infrastructure

📁 Project Structure

🎮 Usage Guide

For Users

For Developers

Deploy Your Own Instance

Integrate PrivaCRE

🔒 Security

Smart Contract Security

Data Privacy

Sybil Resistance

API Security

📊 Credit Score Calculation

Factors Analyzed

Score Ranges

Privacy Guarantees

Planned Networks

🧪 Testing

Run Tests

Test Coverage

🤝 Contributing

📄 License

🙏 Acknowledgments

🎯 Built For

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