Reviewers contribute to consensus ratings by privately generating offchain attestations. Consensus Ratings result from the aggregation of Reviewer attestations and standardized Credora methodology outputs. As participants in the Credora Network, Reviewers:
- Drive Efficiency: Build industry credibility and foster a more informed ecosystem.
- Establish Standards: Contribute to elevating market standards.
- Enable Innovation: Help provide smart contracts essential risk information, unlocking new applications.
Reviewers are automatically eligible to provide input on public Credora methodologies via the Credora Forum, enhancing the development of standardized risk frameworks across relevant asset types.
Additionally, Reviewers insert rating nuance via attestations on Token Ratings, driving an aggregate credible output for widespread market consumption.
Credora has developed a simple interface allowing Reviewers to submit their view on standardized ratings outputs. Attestations are private and verifiable.
Participants
The Credora Network welcomes participation from a variety of qualified Reviewers. The majority of initial participants are in the following categories:
- Trading Firms: Constantly engaging a wide spectrum of assets across centralized and decentralized venues. Their internal processes require the evaluation of these assets in advance of trading. As a result, they are equipped to provide an input on the risk.
- Lending Firms: Have a depth of knowledge pertaining to traditional credit analysis, and in the context of digital assets, the risk of holding any specific asset as collateral. This makes them equipped to provide an input on the risk.
- Investment Firms: In the digital asset industry, Investment Firms cover a wide spectrum. Many are heavily involved in DeFi protocols. They have a fundamental understanding of infrastructure, and are obliged to complete due diligence in a structured manner.
- Analytics Firms: Capture a variety of data points, and provide analysis on different segments of the market. They have a strong understanding of the metrics which allow market participants to understand risk, and are equipped to consider them in the context of credit risk.
- Exchanges: Regularly analyze assets for listing on the exchange, and aim to protect their clients from potential risks. This process equips them to evaluate the risk of tokens.
By incentivizing participation across a diverse set of participants, the Credora Network distills informed market views on a variety of assets.
Credora is currently considering the inclusion of individual participants. In the meantime, individuals are welcome to apply as Contributors on the forum, and contact Credora for higher levels of involvement in methodology development or other aspects of the project.
Application Process
Prospective Reviewers are invited to apply by initially requesting access via the Credora Platform. The application requires the following steps:
- Select the methodologies relevant to your areas of expertise.
- Provide an overview of your risk management experience and credit analysis.
- Upload any relevant supplementary documents.
- Connect a company controlled wallet, or create one on the platform via Privy.
- Sign a message demonstrating wallet control.
Once the application is approved, the Reviewer can access the core Attestations page.
FAQ
What is expected of Reviewers?
Reviewers are expected to familiarize themselves with the Credora Token Rating Framework. This helps inform Reviewer inputs, as relative views on the risk of an asset can be informed by a view that the methodology does not consider or inadequately weights a specific risk factor.
Reviewers are expected to update attestations as their view materially changes. For example, if an industry event drives a change in their fundamental assessment of the risk, Reviewers are expected to revise their attestations accordingly.
If my internal processes do not result in a probability of default, how should I select a ratings input?
Where Reviewers do not internally target a probability of default, it is important for them to consider the relative rating across their attestations. For example, if the reviewer is confident in the base output for certain stablecoins, they can approach attestations from a relative perspective.
How are Reviewers assessed?
Initially, Credora is tracking Reviewer inputs relative to the future consensus rating. For example, Reviewers will be more positively ranked where their inputs lead the consensus rating. This aims to incentivize accurate and timely reviews, especially as information changes.
Over time, there are multiple ways of assessing the performance of the standardized methodology, Reviewer inputs, and the aggregate rating. Credora will introduce these methods in the Credora Forum, in advance of their implementation.
What information is revealed about Reviewer input?
Reviewers submit and sign offchain attestations. In the onchain attestation, Credora only references the UIDs of the offchain attestation. External participants are not capable of mapping these to Reviewer identities. Additionally, the addresses Reviewers use are not visible.