Wenode, an AI-powered DePIN infrastructure, has announced a strategic partnership with Creditlink, an AI-driven on-chain credit protocol.
WeNode is a decentralized compute network with expertise in turning idle personal computer power across the world into AI and Web3 infrastructure.
On the other hand, Creditlink is a decentralized credit infrastructure platform designed to develop credit identities on-chain, leveraging AI-powered rating and credit digital assets. It offers an on-chain credit rating that allows people to access higher liquidity in DeFi using their virtual assets.
This alliance is a symbiotic relationship seeking to improve creditworthiness evaluation and widen the capability of DeFi lending and develop stronger and more reliable decentralized applications in Web3.
WeNode’s Role in the Collaboration
DeFi borrowing and lending is a crucial component in the Web3 landscape, allowing people to use their digital assets to access greater investment opportunities.
DeFi platforms allow people to lend assets to others and, in exchange, earn interest, while others borrow assets by providing collateral. These platforms function interdependently, leveraging smart contracts to enable trading. However, these systems experience challenges, especially in evaluating the repayment capacity of borrowers.
Creditlink has collaborated with the DePIN infrastructure, Wenode, to address this problem. WeNode’s DePIN uses blockchain technology to power a system that supports physical assets, enabling Creditlink’s network to assess people’s creditworthiness based on real-world data.
The DePIN enables the collection of trustworthy data associated with people’s financial behaviour and asset management. This data includes things like asset ownership, transaction history, and off-chain aspects like income verification.
By using its decentralized identity system, Creditlink leverages data generated from WeNode’s DePIN to develop on-chain creditworthiness without infringing privacy. This approach allows a more complete view of people’s financial behavior beyond their cryptocurrency holdings.
The Wenode’s AI-powered system also enables Creditlink smart contracts to automatically evaluate creditworthiness based on predetermined parameters, minimizing the need for manual intervention and decreasing bias.
By tokenizing assets, Creditlink leverages the DePIN system to allow people to utilize their RWAs as collateral, improving their ability to access loans in DeFi and engage in further investment possibilities.
Unlocking Credit in DeFi
Using this partnership, Creditlink bridges that gap between various DeFi platforms. Its incorporation with the DePIN enables it to run a powerful system that makes DeFi borrowing and lending ecosystems reliable and grow.
First, this partnership helps streamline the user experience in DeFi. With the integration, borrowers can smoothly give out collateral and obtain loans depending on their evaluated creditworthiness. On the other hand, lenders can invest with confidence, knowing the DeFi platforms are supported by reliable data.
The alliance is also part of efforts to improve security and user trust in DeFi. With Wenode’s DePIN infused in Creditlink’s asset verification and decentralized identity network, the risks that might affect borrowing and lending are immensely controlled. Also, people can have confidence that their trading activities are protected and that the creditworthiness evaluations are based on reliable and audited data.
Lastly, Creditlink’s partnership with Wenode encourages interoperability with other decentralized finance platforms. This can contribute to advanced investment offerings that use a wider variety of data feeds for creditworthiness and risk evaluation.
