Nomis

Problem

We build Nomis to crush two of the most significant barriers to entry- and adoption- of the whole DeFi lending which are over-collateralization and lack of reputation-based terms. Today mainstream borrowers are either not using DeFi lending due to its unattractiveness comparing to TradFi lending, or taking over-collateralized loans with unfair collateral, APR and liquidation terms.

In other words, today's DeFi loans suck:

• >125% collateral scares away mainstream borrowers from DeFi loans;
• Collateral liquidation terms are often tricky and make DeFi loans even more unattractive;
• There are no personalized terms even if a user has 'good' or 'fair' on-chain reputation.

Banks, in their turn, overcomes this problem by hiring credit scores. Such tool could also be implemented in DeFi making crypto loans more accessible for fair users and underserved populations, cultivating trust and reputation culture. Moreover, credit score negatively impact the number of crypto fraud cases by disincentivizing actors to play dirty.

Solution

Nomis is an open-source protocol which helps on-chain developers both to build better DeFi products and use cases, and to balance already existing high-TVL protocols. Every lending/borrowing platform will be able to provide its end-users with extremely customized loan terms for borrowers by using Nomis API.

Nomis is designed to be a multi/cross-chain solution to offer the most robust financial snapshot of a potential borrower by hiring hierarchy analysis as a scoring method.

Before the Hackathon we had MVPs on Ethereum, Solana, Polygon, and Ripple.

Klaytn's able to leverage Nomis and skyrocket its MAU, TVL and MAD by incentivizing DeFi lending partners use Nomis API to provide mainstream borrowers custom initial terms (collateral, APR, liquidation) based on wallet scores.

Differentiation

Nomis' competitors are other credit scores such as Chainscore (NEAR), RociFi (Polygon), Spectral Finance (Ethereum), Project Galaxy, Cred Protocol, and TrueFi, etc.

BTW, Nomis brings two crucial competitive advantages to the table:

1. Nomis is an open-source solution that helps web3 developers leverage credit scores building better on-chain products and communities.
2. Nomis offers the most robust financial snapshot of a potential borrower by hiring multi-chain approach and hierarchy analysis as a scoring method.
   
   

What we built during the Hackathon

As far as we aspire to build multi-chain solution and offer the most robust financial snapshot of a potential borrower, we are extremely interested in developing Nomis on top of Klaytn.

As a result, we have developed MVP for Klaytn wallets based on on-chain wallet and transaction history which is open source. We also have developed API and its documentation.

Our Hackathon roadmap was as the following:

1. Extracted wallet and transaction data from Klaytn and constructed initial variables;
   
2. Aligned the Nomis mathematical model to the variables extracted;
   
3. Developed credit score and Ul for Klaytn wallets;
   
4. Developed API for Klaytn and its documentation.
   
   

How we built it

1. We hired Klaytnscope to get wallet, transaction and NFT-movement data.
   
2. We constructed variables, based on the data extracted, which further can be received via Nomis API.
   
3. Finally, we hired our mathematical model to develop Nomis (credit) score based on the constructed variabled.
   
   Our solution is based on the .NET 6 platform and the ASP Net Core framework. We used the Docker toolset to build and deploy the solution. To build, run the following command: `docker build -f src/Nomis.Web.Client.Klaytn/Dockerfile -t nomis-klaytn . docker -dp 80:80 nomis-klaytn`
   
   

What's next for Nomis

As mentioned above, our goal is to allow one to borrow capital using one's on-chain reputation as a form of collateral (best case scenario), or at least provide better terms. Although, the long-term vision for Nomis goes far beyond credit scoring for DeFi: other dApps will be able to use existing Nomis Scores as well as building their own custom scores for any need (e.g. wallet qualifier for jobs applications, whitelists, special offerings for products, or just for inviting to a private party, etc.). In other words, our big-picture vision includes building the credential and identity infrastructure layer and empowering developers to build on top of it.

We plan to make Nomis self-sufficient by hiring one of the B2B or Web3 business models and GTMs.