Litentry announced last Tuesday, May 25, through its Twitter account, its strategic partnership with DeCredit, to take advantage of “the potential of decentralized credit in loans”. According to the company, DeCredit will improve the performance of its credit authentication system by integrating Litentry’s decentralized credit calculation network.
“Litentry is pleased to announce our strategic partnership with DeCredit, a DeFi 2.0 protocol that links credit authentication nodes and the credit oracle with credit products. The two teams will work together to take advantage of the potential of decentralized credit in the transformation of loans”, he said through an article published on the Medium platform.
The company explained that, compared to the traditional model of guaranteed loans, decentralized credit facilitates latency in the allocation of resources by eliminating the total guarantee or even the over-collateral on loans.
In his view, DeCredit provides decentralized credit services by linking the credit oracle that connects off-chain credits with on-chain credits and verifies the credit at its credit authentication nodes.
“In this partnership, DeCredit will strengthen the capacity and performance of its credit authentication system by accessing and integrating Litentry’s decentralized credit calculation network. In addition, they will incorporate Litentry’s DID credits into their existing credit model”, he added.
For its part, Litentry plans to index relevant credit oracle identity data from the DeCredit protocol, with the purpose of improving the accuracy and integrity of users’ aggregated identity.
It is a DeFi 2.0 protocol that empowers the DeFi market by introducing credit loan models, that is, linking credit authentication nodes and Oracle credit to credit products, on the premise of existing encrypted secured loan models, with a view to progressively reducing and finally eliminating collateral, allowing the phased allocation of resources and allowing the blockchain paradigm to inclusively enable the traditional financial lending sector.
According to the company, in doing this, DeCredit leverages “the tremendous momentum generated by DeFi to provide liquidity support to a broader range of entities and individuals”.
It is a cross-functional decentralized identity aggregator (DID) that enables linking of user identities across multiple decentralized networks. Based on the Substrate framework and with a DID indexing protocol, Litentry provides a decentralized, verifiable identity aggregation service that eliminates code redundancy and the hassle involved in resolving agnostic DID mechanisms.
“Litentry’s DID aggregator supports all DID standards and has a reliable DID data interface. Everyone can create and submit DID methods to Litentry, which makes identity data easily accessible in Web3.0”, he said.