Under-collateralized lending protocol using verifiable credentials to give a credit score for opening dynamic credit lines and give more power to small and loyal users, then encourage decentralization and active participation on Starknet.
Star User is the Only Dust of users. This under-collateralized lending protocol leverages the on-chain reputation on Starknet to give a credit score, open a dynamic credit line to small and loyal users, allowing them to borrow $STRK, encourage decentralization and active participation in governance by wrapping $STRK, then improve activity on Starknet thanks to their continuous actions.
This project has been built during ETHGlobal StarkHack. More information here.
- Watch the demo video and project page here 👉 video
We want to continue this project after the hackathon and work with the Starknet Foundation and open-source contributors from Only Dust.
The protocol targets the best Starknet users, with less than $10,000 in their wallets.
1 - Credit Scoring based on on-chain reputation
2 - Dynamic credit line based on your continuous actions
3 - Innovative Loan System to boost voting power and increase on-chain activity for small and loyal users
4 - Safeguarding System using game theory to create a virtuous community
This system has two objectives for the Starknet Foundation: give more voting power for the governance to their small and loyal users, and increase the on-chain activity on Starknet.
1️⃣ According to their credit score and credit line (X), the user sends X $STRK and defines how much he wants to put in vSTRK (minimum 40%)
2️⃣ According to the amount put in vSTRK, the smart contract asks a Y percentage of X $STRK, that is superior of the amount sent by the user (to boost the voting power)
3️⃣ The foundation sends Y $STRK to the smart-contract
4️⃣ & 5️⃣ The smart contract wraps in vSTRK the X $STRK from the user and the 40% minimum from the foundation to boost voting power
6️⃣ The smart contract locks and delegates Z $vSTRK
7️⃣ The remains Y $STRK from the foundation is sent to the user to increase on-chain activity
- Notification system to prevent risk when a user is close to the deadline
- Finish and improve the credit score algorithm
- Sybil resistance: detect whales and bot activity to avoid a big amount split in different wallets
- “How to improve your credit score” with a quest system
- Create a community note to open a contest to exclude a user with bad behavior
- Implement Tokenbound Accounts
- A decentralized voting pool system for the governance
- Create an API for protocols to prevent systemic risk by sharing the user credit score with them