Money market protocol Konomi integrating DID from Litentry to better adjust collateral rates
Litentry, a cross-chain decentralized identity (DID) aggregator, today has announced a new collaboration with Konomi, a decentralized money market protocol built using Polkadot’s Substrate, to use its on-chain DID data to better cater to the needs of Konomi’s growing borrower and lender customer base.
Under this partnership, Litentry’s on-chain identity aggregation data and credit computation model will bring value to Konomi they explore new ways to adjust and integrate collateral rates, as well as credit scores based on a user’s verified on-chain identity.
Also, this credit score will be derived from sophisticated algorithms with variables such as average loan repayment period, leverage ratio, credit utilization ratio, net asset value, risk preference, etc.
Litentry has developed a litany of decentralized identification-focused products. Konomi will utilize Litentry’s decentralized credit rating model and extensive data to achieve more significant insights and outputs through this collaboration.
Expanding Decentralized Money Market Platform
Litentry makes it easier for users to verify themselves and access different decentralized financial applications with its identity aggregation protocol.
As an interoperable platform with many of the currently available DeFi infrastructures, this integration will make it easier for Konomi users to efficiently utilize other DeFi platforms that require enhanced KYC or AML regulations from their user base, adds another layer of usability as Litenry will take advantage of their DID data across multiple networks.
“The first use case we will implement will be around user credit scores and how Konomi can adjust collateral rates based on the individual user. However, this is just the tip of the iceberg. Litentry offers many exciting capabilities, and we will continue to work with Konomi to add more value to their network.”
– The Litentry Team