Nomis | Devpost

Inspiration

The problem that we're going to solve is the over-collateralization in DeFi borrowing which is an entry- and adoption barrier for mainstream borrowers.

The market is also attractive: TAM (as of 07/05/22): $155MM = $15.5bln (TVL in DeFi lending) * 1% fee (business model assumption). Growth potential (as of 07/05/22): 560X = $8,681.5bln (CeFI lending global market, 2022 fcst) / $15.5bln (TVL in DeFi lending).

What it does

Nomis is a crypto protocol based on a mathematical prediction and AI model enabling protocol users with a favorable on-chain credit score to borrow crypto with a fair collateral and APR on a case-by-case basis. On the other hand, Nomis is an open-source protocol that helps web3 developers both building new on-chain solutions and use cases, and balancing already existing high-TVL protocols.

How we built it

To predict the crypto borrower’s reliability on the basis of wallet’s data and transactions history, it's proposed to hire a model of trained AI built on the hierarchy analysis and pairwise comparisons methods. The choice of these methods is justified by the data insufficiency of the crypto loan defaults for the development of forecasting mathematical models based on statistical approaches. The hierarchy analysis method seems to be more reasonable for solving multi-criteria problems in complex environments with hierarchical structures involving both tangible and intangible factors than the linear logic approach. Also, the method of hierarchy analysis is a closed logical construction providing, with the help of simple rules, the analysis of complex problems in all their diversity and leading to the best answer. Moreover, the application of this method enables including all the knowledge we have on the problem into the hierarchy. This approach, from our point of view, is a balanced way of solving a quite difficult problem: credit decision forecasting with insufficient statistical data.

What's next for Nomis

The long-term vision for Nomis goes far beyond credit scoring for DeFi. We’re gonna go even further than that. Other dApps will use Nomis Score as a wallet qualifier for making job offers, for adding in whitelists, for offering special marketing terms, or just for inviting to a private party, etc.