Non-Transferable, Non-Financialized tokens tied to a unique profile proving reputation and credit records
Soulbound Token (SBT) needs to be minted if users want to borrow on Prestare. The need for a unique, non-transferable on-chain credential that unlocks greater utility and safety across Web3 has grown in interest since Vitalik Buterin’s recent post about “Soulbound” tokens. Prestare’s SBT was designed to be that and more by becoming Web3’s first, verified token for credit of a user’s on-chain identity.
Vitalik Buterin, together with E. Glen Weyl and Puja Ohlhaver, co-published a 37-page paper titled Decentralized Society: Finding Web3’s Soul, where he introduced the concept of Soulbound tokens (SBTs).
Soulbound tokens are non-transferable tokens that can be utilized to form the social credit system stored in people’s “souls” and revoked upon choice, representing credentials such as a college degree or a job title for verification purposes on the web3.
Prestare’s SBT containing credit score can serve as proof of a valid history and reputation for the address. There are six levels of credit scores, and the discount values vary by credit score when using CRT as collateral. When an address first interacts with Prestare, the initial credit score is calculated based on the address’s past interaction history with other protocols and addresses and will be capped.
Continued credit score improvement will be updated as the address interacts with Prestare’s borrowing afterwards. The score belongs to the user but the user does not control it, making it integrable into other Web3 protocols, bringing the full composability of DeFi. See Appendix B for details of the credit score calculation.