XV Международная студенческая научная конференция Студенческий научный форум - 2023

The model of providing loans on the blockchain currently differs little from the form of issuing money by a pawnshop. Decentralized lending services require the borrower to deposit collateral, to confirm the solvency of user. The amount of collateral is the total blocked value (TVL), which characterizes the volume of liquidity pools (digital asset repositories for their use during transactions). Modern applications work according to the excess collateral model, according to which the pledged amount of money must exceed the taken ones. This principle of lending is not suitable, if client does not have the necessary amount of money to borrow the necessary monetary resources, because a person needs to deposit more funds in a different cryptocurrency. Because of this, the excess collateral coefficient, "Loan To Value" (LTV), is introduced, reflecting the required amount of collateral depending on the size of the loan (Formula 1) [1].

In most decentralized lending services, LTV is in the range from 50% to 80% [1].

The operation of DeFi lending services on the principle of pawnshops (with collateral) allows participants in the borrowing market to remain anonymous online. The lack of information about the solvency of the borrower when issuing funds to himis a flaw in comparison with bank lending. The credit scoring system [1] should reflect basic information about the client: his income, third-party obligations and other facts from his life. It will be possible to issue loans without excess collateral, only if it is available.

Depositing non–interchangeable tokens (NFT), unique digital assets, as collateral, with information about the uniqueness of which is stored on the blockchain, is the first solution to the problem of optimizing the collateral system, their information ensure the reliability of information about the object. There are projects that allow to carry out a borrowing operation using NFT, including such services as NFTfi [2] and Stater [3]. The sophistication of their evaluation and low liquidity during the crisis are disadvantages of blocking of non-interchangeable tokens as collateral [4].

The second way to resolve the problem of oversupply is tokenization of real–world objects. Tokenization refers to the creation of a NFT with information confirming the borrower's ownership of the property and the corresponding pledge of a tangible object. Currently, technologies that allow accepting real-world asset tokens as collateral for debt are being tested by large companies in the DeFi sector such as Aave and Maker DAO. Tokenizing real-world assets, it is possible to assign ownership to a subject without disclosing his personal data. The difficulty for creditors is the low liquidity of some property, for example, real estate, which makes it impossible to liquidate obligations quickly. In addition, the repayment of debt by tangible items may be accompanied by high transaction costs of their sale.

Teller Finance, a project that allows to issue loans to individuals without excessive collateral, is trying to solve this problem [5]. The program requires the user to access his bank account in the viewing mode. Teller Finance makes a conclusion about the reliability of the borrower on the basis of the history of his transactions and the cash balance. Disclosure ofdata from a bank account can declassify the identity of the customer of the service. The lender faces the problem of asymmetric information. The history of operations on the bank account is not able to confirm the employment of the borrower and availability of property for emergency repayment of the debt.

It will be possible to determine the solvency of the client of the DeFi lending service using digital identity technologies and decentralized reputation,proposed by Michael Sena in 2021 [6]. With the appropriate use of these developments, it will be possible to collect all the necessary digitized documents through blockchain oracles, information collectors, and verify the data obtained using smart contracts (automated algorithms for providing, storing and managing information). Credit scoring data will be stored on the blockchain while maintaining the confidentiality of information.

Literature:

1. Adams R. S. Evolution of crypto-pawnshops [Electronic resource] // Cashless payment: a complete guide to DeFi, NFTs, Ethereum and Bitcoin. / May 7 , 2021 URL : https://newsletter.banklesshq.com/p/the-evolution-from-crypto-pawn-shops

2. NFTfi [Electronic resource]: Borrow & lend on the leading NFT liquidity protocol / NFTfi community URL : https://www.nftfi.com/

3. Stater [Electronic resource]: is an open-source peer-to-peer lending platform for NFT / Stater team URL : https://stater.co/about-us.html

4. Shemyakin M. NFTfi: Loan secured by NFT [Electronic resource] // SMART-LAB URL: https://smart-lab.ru/blog/832353.php?ysclid=l7vr43tyrm742701188

5. Teller [Electronic resource]: Lend to the Fintechs of Tomorrow / 2022 Teller Org, INC URL : https://teller.org/

6. Michael Sena The evolution of digital identity [Electronic resource] // Ceramic / 24 February 2021 URL : https://blog.ceramic.network/the-evolution-of-digital-identity-from-key-pairs-to-dids-and-idx/