UCL White Paper
The Next Layer
Leading from Project rissot.to is the next layer of foundation for the decentralized ecosystem that we are embarking to build. It is perhaps the perfect catalyst that will redefine the DeFi space, evolving it into a real challenger to the oppressive hegemony of the CeFi's elaborate theatre.
UCL is a decentralized protocol that allows for uncollateralised crypto borrowing through trust less public anonymity consensus. Key limitation of existing crypto lending protocols require excessive crypto collateralisations, preventing borrowers from participating due to risk arising from unverifiable and unvalidated credit worthiness. Through trust-less public peer consensus underscored by an automated rig-free credit risk governance mechanism, the UCL protocol allows credit ratings of borrowers to be assessed based on the effective redemption of loans rather than actual crypto asset holdings. In addition, the protocol caters for NEAR-COMPLETE recovery of loans in the event of loan defaults; with recovered credits returning to the funded liquidity pool. By removing the need for crypto collaterals and providing additional means for passive yield through extending liquidity to other networks, the protocol dramatically improves credit accessibility, limits risk while improving yields.
Read More if you want to know, in-depth, the components and math behind the movement.