CreDA protocol utilizes real-world (off-chain) and blockchain (on-chain) data to compute a user credit score, also known as a credit rating. CreDA provides on-chain credit ratings for the blockchain world by minting a user’s credit profile into a non-fungible token (cNFT). The cNFT enables the user to unlock preferential rates and incentives across a variety of use cases e.g. reduced borrowing rates on decentralized finance (DeFi) platforms. The CreDA protocol enables DeFi platforms to model risk profiles across their userbase to offer personalized rates and services, making them more competitive versus industry peers.

CreDA enables users to increase their leverage ratio (loan vs. collateral) to the extent some users may be able to secure loans with no over-collateralization being required. CreDA allows users to build and grow their individual credit whilst contributing to the evolution of a DeFi web of trust across multiple chains. This credit can be extended into traditional finance where off-chain commercial entities can account for on-chain activity through the consumer’s CreDA score.

CREDA is the governance token issued by the CreDA protocol. It is a core element in promoting the development of the CreDA network. Based on the economic model of the protocol, all participants are incentivized to participate in the maintenance and development of the entire ecosystem through the community governance mechanism.