Many projects based on the Ethereum blockchain have met with resounding success but other blockchain concepts have emerged in the last few months that have been successfully launched on other platforms. Wing is a protocol that is built on the Ontology blockchain and has a whopping $180 million in crypto assets staked on its platform. This is a huge amount even by ETH standards and is worth a mention.
Ontology’s lead in America and Wing advisor Eric Pinos believes that there are two features in this project that makes it unique. One of them is its cross-chain interoperability with Ethereum and the other it’s a credit-based lending system that allows for loans to be under-collateralized. The mechanism also has something called OScore that analyzes every user’s on-chain behavior to generate a credit score. With the credit score which is quite similar to a loan given out by banks but with additional checks, the OScore credit check determines the amount of collateral the user might need to post for a given loan. He said:
“So instead of everything being over-collateralized right now, you have to put up $10,000 if you want to borrow $8,000 with undercollateralized loans, you can show a credit score that’s built off of your on-chain transaction history and your DeFi interaction history.”
The feature of OScore will surely score in the minds of the user when the feature becomes live. It only shows that the protocol has deeply invested its valuable resources into securing the system at every step of user interaction. The OScore feature is expected to go live into the next pool. OScore has an optimal application in Wing. The integration of OScore into its credit evaluation module to support its DeFi services has enabled the protocol to get an edge and most importantly the confidence of users.
An OScore generation does not involve many complex calculations yet it calls for double-checks and inclusion of every important element. It is based on a hybrid calculation of their digital identity and assets. Users who enjoy a high score will enjoy the benefit of under-collateralization in crediting digital assets such as collateralizing 8 bitcoins to get 10
Compared to the conventionally poised off-chain credit history where the rating agency typically has access to a great majority of relevant information, this protocol does not do this. Here a user can choose which addresses or accounts to submit or remove as per their understanding. Pinos also additionally said that they do their best to eliminate the challenges because they blend both on-chain and off-chain data like social media profiles.
Pinos believes that these unique features showcased by Wing will get the protocol the deserved number of users and assets. The wing protocol may further get additional limelight considering the exorbitantly high cost of transactions on Ethereum which may give it a further push.