Hi all, Michael from Lumen Proof here.
I’m excited to propose a new on-chain lending tool for TrueFi to verify the assets of potential borrowers, evaluate their borrow capacity using attestation data and overall increase trust between lenders and borrowers.
Problem:
TradFi leans on the crutch of credit scores, an established third-party system that assesses an individual’s financial history. In DeFi, we have managed to emulate this process, but thinking of DeFi lending in this way is limiting the potential of blockchain lending protocols. What we truly need is not merely a third-party opinion but an unbiased and forward-thinking paradigm, one that transcends the confines of traditional credit scoring and empowers lenders to gain insights into specific aspects of a borrower’s past and current activities that hold the most relevance to their unique circumstances – without revealing anything else.
Solution:
A privacy-enabled proof of funds system for on-chain lending. Partner with Lumen Proof and use Lumen’s privacy preserving technology to verify funds and validate a borrower’s ownership of on-chain assets held across centralized exchanges. By having borrowers attest to their assets and liabilities, lenders gain trust through transparency by not having to take the borrowers’ “word for it.” Borrowers receive improved borrow rates and/or extended credit limits by completing the Lumen Proof attestation process.
Technology:
Lumen uses zero-knowledge proofs for the verification of DeFi positions without revealing the denominating assets or the wallets containing said asset and leverages confidential computing with Trusted Execution Environments (TEEs) to protect the authenticity and confidentiality of financial data and exchange API keys. Rest assured your financial privacy is safe with Lumen.
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Let’s redefine on-chain lending together. Would love to hear your thoughts on this tool and how a potential integration with TrueFi will look like.
Contact
Michael Chiang
Co-Founder & CEO
Telegram: @diamondogedad
