TRAVA, the future of lending protocols in DeFi. Introducing the new generation of loan protocols, get all the info.
TRAVA is based on an innovative model of multiple loan pools created by users. It is the first decentralized loan marketplace in the world. In a few words, TRAVA performs an analysis of the blockchain data to optimize the parameters of the pools, calculate the credit score, and thus increase the profits and decrease the risks for all users.
What exactly is TRAVA?
TRAVA is the world’s first decentralized marketplace for cross-chain lending. While existing approaches only provide 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 tradable cryptocurrencies, TRAVA offers a flexible mechanism in which users can create and manage their own lending pools to start a lending activity. TRAVA is deployed on Binance’s Smart Chain and initially enables lending with BSC tokens; we then enable cross-chain lending with various tokens on Ethereum and other blockchain networks.
Pool owners, who play an additional role to lenders and borrowers, can realize big profits by developing a good lending strategy for their pools. Moreover, to reduce risk and stimulate lending and borrowing, TRAVA performs cross-chain data analytics across multiple blockchain networks to (i) recommend optimal pool parameters to pool owners and (ii) detect unusual transactions in their pools. TRAVA’s lending market model will increase the liquidity of crypto-currencies and foster the growth of the DeFi ecosystem. TRAVA has six salient features, including:
Crypto lending marketplace:
TRAVA 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 earn more profits.
Semantic knowledge graph:
TRAVA 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 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.
To reduce lending risks, TRAVA performs statistical data analysis based on the cross-chain knowledge graph and other data sources. TRAVA 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 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 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 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 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 a considerable profit from the contract.