Figure 1: Main features of TRAVA.FINANCE
TRAVA.FINANCE (or TRAVA) is the world’s first decentralized marketplace for cross-chain lending. While existing approaches provide only one or a few lending pools with their own parameters such as borrowing/lending interest rate, liquidity threshold, Loan to Value ratio, or a limited list of exchangeable cryptocurrencies, TRAVA.FINANCE offers a flexible mechanism in which users can create and manage their own lending pools to start a lending business. TRAVA.FINANCE is deployed on the Binance Smart Chain and allows for lending with BSC tokens first; we then enable cross-chain lending with various tokens on Ethereum and other blockchain networks.
The pool owners, who are an additional role to lenders and borrowers, can receive more earnings by devising a good lending strategy for their pools. Moreover, to reduce risks and stimulate lending and borrowing, TRAVA.FINANCE performs cross-chain data analysis on multiple blockchain networks to (i) recommend optimal pool parameters for pool owners and (ii) detect unusual transactions in their pools. The lending marketplace model of TRAVA.FINANCE will increase crypto liquidity and promote the growth of the DeFi ecosystem. There are six salient features of TRAVA.FINANCE, including:
- Crypto lending marketplace: TRAVA.FINANCE creates a marketplace in which anyone confident in their abundant capital and profound knowledge of finance is free to create and manage their own lending pools. This multiple-pool model allows pool owners and their pool members to flexibly adapt their investment strategies to the volatility of the crypto market and obtain greater earnings.
- Semantic knowledge graph: TRAVA.FINANCE is built upon the semantic cross-chain knowledge graph. The graph is a distributed ledger that holds the data collected from multiple blockchain networks in the form of entities and their interconnections. The graph allows TRAVA.FINANCE to efficiently search for useful information such as (i) the amount and value of assets exchanged between two wallet addresses; (ii) the provenance of an NFT; (iii) aggregated assets of the same user on multiple networks, etc.
- Data analysis: To reduce lending risks, TRAVA.FINANCE performs statistical data analysis based on the cross-chain knowledge graph and other data sources. TRAVA.FINANCE recommends the optimal parameters for pool owners to create and maintain their own pools (e.g., borrowing-lending interest rate, Loan to Value ratio, liquidation threshold, a minimum credit score of borrowers). TRAVA.FINANCE also assists them in detecting and alerting unusual transactions in their pools.
- Credit score evaluation: Though being an effective tool in lending, credit score has never been used in existing decentralized lending platforms. As a pioneer, TRAVA.FINANCE uses the cross-chain knowledge graph to evaluate credit scores for users and their digital assets. The pool owners thus can (i) reduce the lending risks by defining a credit-score threshold for borrowers participating in the lending pool; and (ii) stimulate borrowing by defining a high Loan to Value ratio for borrowers with high credit scores.
- Cross-chain identification and cross-chain lending: TRAVA.FINANCE uses the cross-chain identification protocol to identify all wallet addresses of the same users on different networks. After that, users can use up all of their cryptos as collateral for a huge loan in a single transaction. This facilitates their borrowing operations and saves them transaction fees. Cross- chain identification also helps them to increase their credit scores.
- NFT, stock tokens, and other digital assets as collaterals: To increase the liquidity of such special assets as NFT, stock tokens, or smart contracts, TRAVA.FINANCE allows users to use all of these asset types as collaterals. Before that, the special digital assets must be priced through auctions. The auction winners are involved in the lending contract. They can either possess the digital asset at a low price or earn considerable amounts from the contract.