The potential of undercollateralized lending is huge, there is about $47B in over-collateralized loans in crypto, whereas there is more than $7T under-collateralized loans in TradFi, which is a big gap to fill.

But in order to seize this opportunity, the next bull cycle of crypto and DeFi will demand a lot more regulation(KYC/AML), anti-scam measures and credit-reputation scores.

Verifiable-Reputation blockchain passports like Krebit.id can become an infrastructure layer for DeFi apps using the protocol to conduct decentralized KYC/AML, restrict access to adult content and prevent sybil fake accounts.

Krebit just announced it's partnership with Cred Protocol to issue verifiable credentials for accounts that have a Good or greater credit score on their platform.

Cred Protocol is on a mission to bring trust and transparency to web3 by quantifying lending risk at scale. They analyze on-chain and off-chain data to evaluate an account owners ability and willingness to fulfill obligations, specifically to repay loans.

By integrating the Cred Protocol score credential to Krebit's portable reputation passport, DeFi users can signal their good credit score to other DeFi apps and protocols, to get better ratings and progressively unlock greater capital efficiency on their crypto-collateralized loans.

About Cred
Cred Protocol provides credit risk management infrastructure that quantifies on-chain lending risk at scale. Leveraging enterprise grade data ingestion pipelines, they train machine learning models on data generated across chain (Ethereum, Celo) and across protocol (Aave, Compound, Teller, Moola Market). To learn more about Cred Protocol, visit credprotocol.com or follow along on Twitter at @cred_protocol.

About Krebit
Krebit.id is an open identity verification protocol, DAO and marketplace for Web3 Verifiable Credentials. Verifiable-Reputation blockchain passports like Krebit.id can become an infrastructure layer for DeFi apps using the protocol to conduct decentralized KYC/AML, restrict access to adult content and prevent sybil fake accounts.