FlashCred
Problem Statement
Traditional DeFi lending protocols often require over-collateralization, limiting access for users without significant assets. Existing credit scoring systems are either centralized, opaque, or computationally heavy, making them unsuitable for real-time, on-chain applications. There’s a need for a decentralized, transparent, and efficient credit scoring and microloan system that evaluates wallet behavior in real-time without collateral, while providing clear user explanations and Sybil resistance.
Solution Overview
FlashCred is an AI-powered, on-chain microloan and credit scoring protocol built on Hyperion’s infrastructure. It uses a rule-based scoring system implemented in Solidity and executed via the Metis SDK to evaluate wallet behavior (transactions, DeFi interactions, token holdings) in real-time, offering collateral-free loans. The Alith SDK provides conversational explanations for credit decisions, enhancing user trust. Hyperion’s flash execution ensures parallel processing for scalability, and a DAO-driven feedback loop allows rule updates. The system is transparent, lightweight, and gamified to drive engagement.
Project Description
FlashCred enables DeFi users to access microloans without collateral by evaluating their on-chain behavior (e.g., transaction count, DeFi interactions, token diversity) using a deterministic rule-based scoring system. Deployed on Hyperion’s testnet, it leverages the Metis SDK for efficient on-chain computation and the Alith SDK for user-friendly explanations. Loans are issued from a liquidity pool, with risk-adjusted interest rates and repayment tracking managed by Solidity smart contracts. Hyperion’s flash execution ensures real-time performance, and optional social proof (Lens/Farcaster) enhances Sybil resistance.
Community Engagement Features
Gamified Experience:
Reputation NFTs: Mint ERC-721 NFTs for successful repayments, displayed in the dApp to showcase user credibility.
Credit Ladders: Tiered system (Bronze, Silver, Gold) based on scores, unlocking better rates/limits.
DAO Governance:
Users stake tokens to vote on rule updates (e.g., adjusting scoring weights) or liquidity pool funding.
Example: Propose increasing defiInteractions weight to 60 points.
Transparent Explanations:
Alith SDK answers queries like “Why is my score low?” with clear breakdowns, fostering trust.
Example: “Your score is 400 due to low transaction count (5 txs, +50 points).”
Social Proof Integration:
Optional Lens/Farcaster profiles link on-chain activity to social reputation, encouraging community participation.
Incentives:
Early repayment rewards (e.g., 1% rate discount on next loan).
Referral system: Invite users to earn bonus points.
Getting Involved
Developers:
Contribute Code: Fork the repository (to be created) and submit PRs for smart contracts, frontend, or Alith/Metis integrations.
Tasks: Implement data fetching (Ethers.js for txs, Lens API for social proof), enhance DAO logic, or add UI features.
Setup: Clone Hyperion SDKs (https://x.ai/api), set up Hardhat, and deploy to Hyperion testnet.
DeFi Users:
Test the dApp on Hyperion testnet: Connect wallets, request loans, and provide feedback.
Join the DAO to vote on rule updates or pool funding.
Community Members:
Engage on X or Discord to discuss features, propose rule tweaks, or share use cases.
Example: Suggest new scoring metrics (e.g., DAO voting participation).
Resources:
Docs: Hyperion SDKs (https://x.ai/api), OpenZeppelin for Solidity standards.
Tools: Hardhat, React, Ethers.js, Lens/Farcaster APIs.
Contact: Join HyperHack channels or post on X with #FlashCred.
Timeline:
Week 1: Set up environment, deploy rule-based contracts.
Week 2: Integrate Metis for scoring, Alith for explanations.
Week 3: Build/test React frontend on Hyperion testnet.
Week 4: Add NFTs, DAO, and polish UI.