  Collateral is an item of value serving as security for the repayment of a
loan. In blockchain-based loans, cryptocurrencies serve as the collateral. The
high volatility of cryptocurrencies implies a serious barrier of entry with a
common practice that collateral values equal multiple times the value of the
loan. As assets serving as collateral are locked, this requirement prevents
many candidates from obtaining loans. In this paper, we aim to make loans more
accessible by offering loans with lower collateral, while keeping the risk for
lenders bound. We use a credit score based on data recovered from the
blockchain to predict how likely someone is to repay a loan. Our protocol does
not risk the initial amount granted by liquidity providers, but only risks part
of the interest yield gained by the protocol in the past.
