Off-chain Oracle Analytics for On-Chain Trust
Off-Chain Oracle Analytics
Off-Chain Oracle Analytics Feed On-chain protocols.
Previous migratory flights through DeFi are stored in the history of your Ethereum address, but for many borrowers, much of their financial lives also exists off-chain. Bird.Money’s Analytics Engine and Decentralized Oracle accesses this on- and off-chain information in order to provide lending platforms with more information about the loan applicant in order to reduce the risk of defaulting. It’s flagship product, the Blockchain Individualized Risk of Default Score or BIRD Score, is a machine-learning derived prediction product that captures the unique credit risk characteristics of a given wallet address.
The higher a user’s BIRD Score, the less collateral required to borrow, which maximizes access to capital for the most trusted DeFi Users.
Some examples of factors that can affect on-chain loan access and increase the risk of defaulting may include:
- Individual Wallet Data, such as asset balances and transaction history
- Wallet Network Analysis, such as prior lending performance and smart contract interactions
- Digital Off-Chain Data, such as browsing history and social media
- Other Off-Chain Data, such as employment status and bank balances
Partners
Our partnerships aren't simply for show. They're based on legitimate bilateral technical integrations with other platforms and protocols. Together our aim is to further advance decentralized finance in a safe, sustainable and globally inclusive way. Together we are birds of a feather.
On-Chain Oracle Protocols
Integration between On-Chain Protocols and Off-Chain Bird.Money API
Bird.Money’s off-chain API can feed on-chain protocols with information about an ETH account, its transaction history and digital assets related to that account. The native Bird Oracle (*currently in development) will use event triggers to notify the off-chain oracle nodes of information updates on the blockchain. The target information will only be updated if there is a consensus between all of the oracles.
Examples of Bird Oracle’s Use Case:
- Request sent to the API endpoint/Oracles
- Oracles calculate the user’s transactions and generates a rating
- The rating is sent to the on-chain smart contract, but prior to that information being accepted, the on-chain oracle checks if the source is allowed to save information on-chain
- The oracle sends our event trigger to 2 or more other engines to confirm the ratings are equal
If the information from all 3 or more oracles match, the record is added to the blockchain. This allows other companies and smart contracts to query the information knowing that it has been fully vetted and secured. This information can be leveraged for additional loan ratings, collateral requirements and can act as a form of digital ID issued by Bird.Money.
If the information from all 3 oracles do not match, the record is simply not added to the blockchain, eliminating risk for all parties.
Read MoreLending
Borrow More Assets With Less Collateral
The Bird Lending Platform and Analytics Oracle is the basis for a new type of lending, one in which borrowers are provided loans specifically tailored to their unique risk profile. It is based on the compound protocol with altered asset pools and the deployment of a proprietary credit score, called the BIRD Score. For many borrowers, this architecture increases access to funds above and beyond the current collateralized debt positions (CDP) offered by Compound Finance and AAVE.
The BIRD Score is a first-of-its-kind prediction product delivered on-chain to provide borrowers with cutting-edge credit risk analytics, empowering them to obtain the best possible loan terms with their capital.
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