Risk-calculator using Cartesi VM as a co-processor for banking 3.0

Proposed RFPs
1

Wave 2 Intent - 4:
Expand the Cartesi Design Space: Highlight clear use case for Cartesi as a co-processor

Overview:
Cartesi VM is a modular blockchain execution layer that can be delivered on different architectures depending on its necessity and use-case requirements. One of our VM’s delivery methods is to act as a co-processor.

A co-processor is a mechanism that allows a smart contract to offload complex computations to an external system and retrieve the computed results back onto the blockchain, they offload complex tasks, ensuring transparency and trust through verifiable computation

In Cartesi´s case, our co-processor uses as security guarantees from Eigenlayer infrastructure and through our VM it´s we deliver an environment capable of running generic programs to support, with heavier computation and complex programming, existent smart contracts deployed on the blockchains, which by nature are limited on its capabilities due to blockchain constrains.

This RFP aims to create a financial co-processor for risk management.

Solution:
Develop a set of financial risk calculators that handle different types of customer data for risk assessment. The implementation should include a few options for risk model to be used as a choice from the main application

This co-processor must be built to interact with baselayer financial dApps such as lending protocols

  • Implement a co-processor with 3-4 options of risk calculation methodologies and the possibility to receive different types of data inputs to have risk calculated
  • Support option for baselayer application choose which risk model to use

The financial risk calculator co-processor should be capable of receiving requests from different applications on the base layer

Team Qualifications:
The team must have proven expertise in developing production-ready backend services and executables and experience in developing decentralized financial applications, preferably interconnected with the traditional finance system

2 Likes
2

+1 for this. Having a powerful risk analysis engine with fast finalization through AVS would raise the bar for loan protocols and provide novel security to investors.

3

Great way to leverage the heavier computation capabilities! I can easily see other DeFi projects and liquidity providers using this tech! Could also be interesting exploring RWA applications with this

4

Do we have an idea of projects that would potentially adopt this, and amount of coprocessor calls per month that this could make?

Would this have dependencies on other things than stateless computation, or is there a requirement to access content-addressed state / data availability layers like Celestia or Espresso?

5

Its a good question: Im not sure if that solution would be per customer basis or a more general one. I see two type of protocols using that.
1 - For Brazilian market: Get a general risk calculator to help RWA projects evaluate collateral requirements using data from SERASA oracle (brazilian finance risk data service provider)
2- For general lending protocols: Calculate simple volatility index for better collateral calculations

6

We love this idea personally. Our lab have been experimenting with risk models in Cartesi, mostly using off-chain data coming from Plaid APIs to assess cash flow and Credit Karma for credit scores, and our hope was to use it internally for RWA lending to disenfranchised small businesses in the US. It never occurred to us the possibility of an open service offered to other RWA borrowing/lending protocols. Could help a great deal towards un-collateralized or under-collateralized lending efforts in DeFi without overly complicated dynamics or unconventional community input on individual loans. (i.e. Goldfinch, Maple Finance, Centrifuge, etc.)

+1 from our team.