Transforming Web3 Finance: The Power of Onchain Scoring Infrastructure - Goat.Tech

The DeFi landscape faces substantial challenges in financial leverage and asset utilization. Recent data shows the ratio of Total Value Locked (TVL) to Total Value Bridged for top Layer 2 solutions is only 20%. Specifically, Arbitrum has a TVL ratio of 16.24% while Manta is at 7.19%. These inefficiencies indicate significant underutilization of assets in Web3.

Goat.Tech’s Onchain Scoring Infrastructure aims to address these inefficiencies by enhancing trust, optimizing asset deployment, and significantly boosting TVL, unlocking the full potential of decentralized finance in Web3.

Goat.Tech - Onchain Scoring System

The Problem: Limited Financial Leverage & Asset Utilization

For Whales

DeFi whales, often high-net-worth individuals or entities, participate in yield strategies and achieve significant returns. However, they encounter several obstacles:

Lack of incentives to manage others' assets: Whales often lack motivation to leverage their expertise by managing assets for others.
Lack of on-demand liquidity: Participation in high-risk, high-reward "Degen" protocols like futures, memes, and games is often hindered by a lack of immediate liquidity.
Lack of practical onchain benefits: Despite their achievements, whales do not receive onchain benefits that reflect their past successes, limiting their engagement.

For Retail DeFi Users

Retail users, who typically have less capital and experience, face their own set of challenges:

Complexity of yield protocols: Yield protocols can be overwhelming due to their complexity, making it difficult for retail users to choose and use them effectively.
Lack of trust in asset managers: Users are hesitant to entrust their assets to managers due to insufficient data on their trustworthiness.
Lack of On-Demand Liquidity: Similar to whales, retail users struggle with immediate liquidity for participating in "Degen" protocols.

These challenges lead to stagnated onchain activities and low Total Value Locked (TVL)

Weighted Avg. Locked / Bridged = 20%

The ratio of TVL (all protocols) to Total Value Bridged of top Layer 2 solutions is only 20%.
The ratio of TVL (all chains) to Total Altcoin Market Cap is only 10%.

The Solution: Onchain Scoring System

1-Click Copy-Yield: Stake assets in pools of the trusted to instantly copy their yields. This feature simplifies the process for users, allowing them to benefit from successful strategies without the need for complex setups.

AI-powered Yield Optimizer: Stake assets in Goat.Tech to leverage an AI-powered optimizer that allocates funds efficiently across various yield protocols, maximizing returns with minimal effort.

Onchain Scores: Can be integrated into any decentralized application (Dapp) and used in onchain calculations, providing score owners with practical benefits. It includes three types of scores: Trust Score, Credit Score & Degen Score.

Onchain Scores at Goat.Tech

Goat.Tech's Onchain Scoring Infrastructure aims to maximize financial leverage and asset utilization while boosting onchain activities and TVL.

To maximize financial leverage:

Trust Score: Combines onchain and offchain data to measure trustworthiness, incentivizing users to actively validate and build trust.
Degen Score: Measures onchain activities, boosting trustworthiness and providing additional leverage for high-risk activities.

To maximize asset utilization:

Credit Score: Offers a credit line based on current liquid and illiquid assets and future earnings, allowing users to borrow against their Credit Score.

To boost onchain activities & TVL:

Integration with Yield Protocols: Collaborations with platforms like Pendle, Goat/Aave, and Karak boost inflows from new users.
Integration with "Degen" Protocols: Enhances volume and participation in high-risk protocols like futures, games, and memes.
1-Click Copy-Yield: Simplifies the yield farming process, encouraging more users to stake their assets and boosting TVL.
AI-powered Yield Optimizer: Optimizes fund allocation, driving higher returns and attracting more users, thereby increasing TVL and onchain activities.

Why Onchain Scoring System is crucial for Decentralized Ecosystems

At Goat.Tech, we believe that an onchain scoring system is not just a crucial aspect, but a necessity for the growth and success of decentralized ecosystems. It builds trust, enhances financial leverage, optimizes asset utilization, and incentivizes participation, leading to a more robust and trusted decentralized environment.

Addressing Key Challenges

One significant challenge in DeFi and Web3 applications is the lack of a reliable method to assess user trustworthiness. The Onchain Scoring System addresses this by evaluating both onchain activities (actions recorded on the blockchain) and offchain data (information not stored on the blockchain). This comprehensive data assessment helps accurately evaluate users' trustworthiness, encouraging participation and building trust within the ecosystem. It also provides additional leverage for high-risk activities like yield farming and Degen protocols.

Enhancing Trust and Transparency

Trust and transparency are critical in a decentralized ecosystem. An onchain scoring system offers a verifiable way to assess user trustworthiness. By storing scores on the blockchain, users can independently validate the reputation and reliability of other entities without relying on centralized authorities. Moreover, the immutable nature of blockchain technology ensures that onchain scores are secure and tamper-proof. This security is essential for maintaining the integrity of the scoring system and ensuring that it remains a reliable source of information for all ecosystem participants.

Maximizing Financial Leverage

The onchain scoring system aids in maximizing financial leverage by providing accurate and reliable data on users' creditworthiness and risk profiles. This enables DeFi platforms to offer tailored and optimized lending, borrowing, and investment opportunities, improving market efficiency and liquidity.

Increasing Asset Utilization

By linking top protocols with precise onchain scores, these systems promote better asset utilization. Users can make more informed decisions about where to stake, invest, or lend their assets based on these scores, leading to higher returns and more efficient capital distribution within the ecosystem.

Incentivizing Participation

Onchain scoring systems incentivize positive behavior and active participation. Users who engage in responsible activities can improve their scores, gaining access to superior financial products and services. This creates a virtuous cycle, rewarding good behavior and further enhancing the stability and growth of decentralized ecosystems.

Simplifying Yield Farming

The system simplifies yield farming through features like "1-Click Copy-Yield," encouraging users to stake or lock up their assets, which in turn boosts the Total Value Locked (TVL). The inclusion of an AI-powered Yield Optimizer improves fund allocation, generates higher returns, and attracts more users.

All of these factors work together to enhance the practical benefits for score owners, promote heightened engagement and establish a trustworthy environment within the decentralized ecosystem.

About Goat.Tech

Goat.Tech emerges as a visionary in Web3 finance, offering an innovative Onchain Scoring Infrastructure, powering 1-Click Copy-Yield and AI Yield Optimizer. Positioned as the emerging Financial Nexus of Web3, our platform is dedicated to turbocharging Web3 activities and significantly boosting Total Value Locked (TVL).

Our goal is to link Top Protocols with Onchain Scores, allowing seamless integration into onchain calculations by any Dapp and providing users with powerful tools like 1-click Copy-Yield and AI Yield Optimizer. This approach addresses challenges such as limited financial leverage and suboptimal asset utilization. At Goat.Tech, we empower users to strategize yields, stake, earn, borrow, and play—all within a unified platform.

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