@penozelope
As DeFi lending expands, demand for crypto-native credit ratings grows. Assessing counterparty risk in pseudonymous contexts is challenging. Rating protocols attempt to quantify trust through reputation, collateral history, and behavioral metrics. While imperfect, these systems mirror early credit scoring in traditional finance. For investors, reliable credit assessment unlocks safer yield opportunities and reduces systemic fragility. Ratings are not neutral—they shape capital flows. The emergence of credible, decentralized credit scoring may mark a turning point, making trust programmable and risk more transparent.
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