How On-Chain Credit Works

Why Blockchain Data Is Better

Every interaction you have with a blockchain — borrowing, lending, swapping, staking, bridging — leaves an immutable, timestamped record. Unlike traditional bureau data, which depends on voluntary reporting from thousands of lenders with varying formats and error rates, blockchain data is deterministic and verifiable by anyone.

Immutable Records

Once a transaction is confirmed on-chain, it cannot be altered or deleted. There is no equivalent of a lender accidentally reporting a late payment or failing to report an account closure. The blockchain is the single source of truth.

Timestamped Precision

Every on-chain event carries a block timestamp accurate to the second. Traditional bureaus often receive data weeks or months late. Blockchain records capture the exact moment a loan was opened, collateral was added, or a position was liquidated.

Permissionless Access

Anyone can verify any wallet's on-chain history without requesting permission from a gatekeeper. There is no application process, no annual report limit, and no credit freeze to navigate. The data is open by default.

No SSN Required

Traditional credit scoring requires a Social Security Number, locking out billions of people worldwide. On-chain credit requires only a wallet address — making it accessible to anyone, anywhere, regardless of citizenship or documentation status.

The 8 Scoring Signals

VIZI indexes blockchain activity across multiple chains and protocols, extracting eight distinct credit signals. Each signal carries a published weight that determines its influence on the final score.

Repayment History

28%

On-time DeFi loan repayments across Aave, Compound, Morpho, Spark, and other supported protocols. The single most influential factor.

Liquidation Events

19%

Undercollateralization and forced liquidations. The most damaging negative event in on-chain credit, equivalent to a default in traditional finance.

Wallet Age & Activity

15%

Account maturity and consistent usage. Measured from the first transaction on any supported chain, rewarding long-term ecosystem participation.

Collateral Ratios

12%

How well-collateralized positions are maintained over time. Wallets maintaining 200%+ ratios consistently score highest on this signal.

Average Balance

10%

Sustained balances demonstrating financial stability. The time-weighted average across stablecoins, major tokens, and LP positions over 12 months.

Sanctions / Fraud Flags

9%

OFAC screening, mixer usage, and flagged interactions. Any direct sanctions match results in an immediate floor score of 300.

Verified Income Proxies

5%

Recurring deposits, staking rewards, yield patterns, and DAO contributor payments. Measures the regularity of inbound value flows.

Protocol Diversity

2%

Breadth of DeFi ecosystem engagement across distinct protocols and chains. A secondary indicator of sophistication and ecosystem commitment.

How Data Is Collected

VIZI operates a multi-chain indexing infrastructure that continuously ingests and normalizes blockchain data from both EVM-compatible and non-EVM chains.

EVM Chain Indexing

Ethereum, Polygon, Arbitrum, Optimism, Base, Avalanche C-Chain, and BNB Chain are indexed continuously. EVM compatibility allows a unified parsing pipeline for smart contract events, including lending positions, repayments, liquidations, and token transfers.

Non-EVM Chain Support

Solana and XRP Ledger use custom indexing pipelines tailored to their unique transaction structures. Solana's account-based model and XRP Ledger's payment channels require specialized parsers that map activity to VIZI's unified signal format.

Protocol-Level Parsing

Each supported lending protocol (Aave V2/V3, Compound V2/V3, Morpho, Spark, MakerDAO) has a dedicated event parser that extracts borrow, repay, deposit, withdraw, and liquidation events with full context including amounts, timestamps, and health factors.

Real-Time Processing

New blocks are processed within seconds of confirmation. On Ethereum, this means every 12 seconds; on Solana, every 400 milliseconds. VIZI Scores reflect the current on-chain state, not a monthly snapshot from weeks ago.

Self-Sovereign Credit

On-chain credit fundamentally changes the relationship between a person and their financial reputation. In traditional finance, credit bureaus own your data. With VIZI, you own your wallet and all the data it contains.

There is no application form, no SSN, no credit file created without your knowledge. Your on-chain history belongs to your wallet address, secured by your private keys. Nobody can freeze your score, sell your data to marketers, or deny you access to your own financial records. You never have to request a copy of your own credit report because the blockchain is public and verifiable by default.

This self-sovereign model also eliminates the identity theft problem that plagues traditional credit. Because VIZI scores wallet addresses rather than Social Security Numbers, there is no centralized identity database to breach. The Equifax breach of 2017 exposed 147 million SSNs. On-chain credit has no equivalent vulnerability.

Cross-Chain Identity

Most active DeFi users operate across multiple chains and may control several wallet addresses. VIZI uses graph-based wallet clustering to build a comprehensive credit picture.

When a VIZI Score is requested for a wallet address, the system identifies which blockchains the wallet has been active on and queries all of them in parallel. Bridge transactions, shared deposit addresses on centralized exchanges, and on-chain identity attestations are used to link related wallets into a single credit identity. This ensures that a user who has strong repayment history on Aave (Ethereum) and active borrowing on Solend (Solana) receives credit for both, rather than being scored as two separate thin-file wallets.

Cross-chain identity resolution is opt-in for privacy-conscious users. If you prefer that your wallets remain unlinked, VIZI scores each address independently. Linked wallets always produce equal or better scores than isolated ones, because they present a more complete picture of creditworthiness.

From Raw Data to Score

When a VIZI Score is requested for a wallet address, the following pipeline executes in under 2 seconds.

Ingest

VIZI identifies which blockchains the wallet has been active on (Ethereum, Polygon, Arbitrum, Base, Avalanche, Solana, BNB Chain, XRP Ledger, Optimism) and queries all of them in parallel. All relevant transactions are pulled from VIZI's indexed blockchain data.
Normalize

Raw transactions from different chains and protocols are converted to a unified event format. A repayment on Aave V3 (Ethereum) and a repayment on Solend (Solana) both become standardized REPAY events with consistent fields: amount, timestamp, protocol, and chain.
Extract Signals

Normalized events are processed into the eight scoring signals. Each signal is computed independently using the full transaction history. Recency weighting ensures recent activity matters more than events from years ago.
Weight & Combine

Each signal is normalized to a 0–100 scale and multiplied by its published weight. The weighted signals are summed to produce a raw composite score, which is then mapped to the 300–850 range using a linear transformation.
Output

The final score, letter grade (A+ through F), confidence level, factor breakdown, and chain-level detail are returned via the VIZI API. The entire process completes in under 2 seconds from request to response.