The new credit-based lending product offering by Wing aims to integrate credit elements into the decentralized finance ecosystem. Ontology’s OScore credit evaluation system will evaluate the credit score of a user and thereby increase the potential and scope of the decentralized financial services which can be offered.
What Is OScore?
Built on Ontology, OScore is a self-sovereign reputation and credit evaluation system for the decentralized finance industry. It is supported using decentralized identifiers and verifiable credentials on the Ontology blockchain and supports cross-chain interactions across different blockchains.
Currently, OScore’s primary credit evaluation mechanism calculates the user’s balance and historical holding records of various digital assets. It supports blockchain platforms based on Bitcoin, Ethereum, and Ontology, and it automatically generates a quantifiable credit score for any user. During verification requests, the application takes the utmost care of the user’s privacy.
Thus, using OScore, Ontology is planning to provide a solution for users to bind an identity to their digital assets, which is missing from the current DeFi ecosystem. This will not only increase the trust and the security amongst the involved parties but will also take the DeFi ecosystem to the next level.
According to Li Jun, founder of Ontology, “Ontology is providing a solution that connects users’ assets to their identity, providing increased security and trust to all parties, connecting the missing pieces of the DeFi ecosystem.”
By using @OntologyNetwork's #OScore, risk experienced by lenders utilizing @Wing_Finance's #technology will be vastly reduced as #transparency and trust are greatly increased, and correct due diligence can take place. $ONT $ONG #DeID https://t.co/nPPqHaGFdU
— Li Jun (@LiJun_Ontology) November 13, 2020
The OScore system is planning to incorporate more on-chain data and evaluation mechanisms in the near future. Also, Ontology has already integrated OScore into the ONTO wallet. Users are able to manage their OScore through their mobile phones.
Benefit of Credit-Based DeFi (OScore)
Credit-based DeFi refers to the emerging series of DeFi products that utilize an identity or credit factor component in its user flow. In the Wing Finance Inclusive Pool, users will receive the following benefits for maintaining a good credit score (OScore).
- Users will receive WING tokens as rewards for returning borrowed assets on time and maintaining positive behavior.
- Users may receive reduced collateral requirements, which in turn results in more transactions and higher asset liquidity.
- Users can withdraw any asset in their wallets directly from the dashboard.
- Users may be rewarded with lower interest rates and more generous financing options for good repayment practices.
- Ontology’s Decentralized Identity solution, ONT ID, protects the privacy of both the user’s identity and their data.
Now let see the different products offered on the Wing Finance platform.
The Flash Pool was launched in early September. It allows users to lend, borrow, and earn interest from asset lending. The Flash Pool also contains an incentivized insurance pool to minimize the risk of asset loss.
To learn more about the Flash Pool and how to Lend, Borrow, and insure, read the guide here.
Users can supply assets to the Flash Pool and earn interest as well as WING incentives from it. Users earn interest in the specific form of the supplied asset and receive incentives in WING tokens at the respective APY and WING APY.
Users can borrow assets from the Flash Pool if they have supplied collateral. The interest is charged in the same type of asset that the user has borrowed.
They can also earn WING incentives through borrowing in the Flash Pool, but for that, users need to mandatorily tick the check box to lock a 3% equivalent amount of WING tokens.
If you choose to lock the 3% WING requirement to earn WING on a borrow, then the amount of WING locked will automatically be displayed alongside the rest of your loan info.
You can also earn WING by locking WING in the Flash Pool’s insurance pool for a minimum of three days. But you can only insure Wing in the Flash Pool if that same address isn’t also supplying or borrowing WING in the Flash Pool, i.e., the same address cannot be used to supply/borrow and insure WING in the Flash Pool at the same time.
In addition, you can liquidate the collateral of a breached user at a preferential price along with an estimated 8% liquidation bonus even if you didn’t participate in supplying, borrowing, or insuring.
Claiming WING Incentives
Users can earn WING incentives by lending, borrowing, or insuring WING in the Flash Pool. It is not required to claim the incentives manually as it automatically gets claimed whenever the user takes any further lending, withdrawing, or insuring actions.
Wing encourages the community to help refine a strong governance model and plans to transition into a fully Decentralized Autonomous Organization with time. The DAO community discusses, proposes, evaluates, and ultimately votes on policy, features, and more for the Wing platform.
Users can submit a proposal on gov.wing.finance to carry out actions such as:
- Adding new assets to the platform
- Changing collateral requirements
- Adjusting interest rates
- Implementing buybacks
Proposal Prerequisites (still under development)
- To participate in the governance system, a user must have at least 1 WING token.
- To submit a proposal for on-chain voting, the user must have at least 1,000 WING tokens.
- Once the user submits the proposal, their WING tokens will be locked until the proposal is approved.
- Once the proposal is submitted, it will be reviewed by the Wing team within 72 hours before launching the voting process. The proposal is also required to be viewed 100 times and must receive engagement from at least 10 users.
- The Wing team reserves the right to reject or edit the proposal.
Types of Proposals
Based on the complexity of implementation, proposals are divided into three levels. These levels are defined and set by the Wing team.
Proposals can be implemented in three working days after the vote is passed. Level 1 proposals mainly include adjusting certain project parameters.
Proposals can be implemented within one month after the vote is passed. This includes, but is not limited to, the following:
- Adding a borrowing or lending pool
- Removing a borrowing or lending pool
- Adding or removing a specific type of asset
- Adding a certain parameter
Proposals that require more than one month to be implemented.
- Adjusting certain mechanisms
- Adding new features
- Initiatives that require recurring operations such as buybacks.
The WING token is the governance token of Wing DAO and the utility token for the Flash Pool.
WING Token Distribution
As per WIP-8’s voting result, WING’s final total supply has been lowered to 5 million. To achieve this, WING’s distribution rate was adjusted to 60% and 500,000 WING tokens in the Community Fund were burned.
The total release will be completed over ten years.
- 4,000,000 (80%): Liquidity and margin incentives
- 1,000,000 (20%): Wing DAO Community Fund
Users can trade WING on Binance or on DEXs such as Uniswap and uTrade.
WING Token Statistics as of Nov 29, 2020 at 2 pm IST
A credit-based, cross-chain DeFi lending platform is an innovative approach to offer more advanced solutions typically found in the mainstream financial sector. With this approach, Wing Finance aims to strengthen the capabilities, trust, and security among the parties involved. This not only helps users but it has the power to revolutionize the entire DeFi ecosystem. Built on Ontology, the platform charges a very low transaction fee, which is another advantage. It will attract more users once the platform starts supporting more tokens.
Resources: Wing Finance website, OScore: Everything You Need to Know, Lower Your Collateral Requirements & Loan Interests with OScore
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