The Irion Credit Engine
Unlike traditional lending protocols that require 150%+ over-collateralization, Irion Pay enables under-collateralized or credit-based borrowing for BNPL. This is made possible by our proprietary CreditScore smart contract.
Scoring Factors
Your on-chain reputation in Irion is determined by several key factors:
- Repayment History: Timely repayments on existing BNPL loans significantly boost your score.
- Wallet Age & Activity: The protocol analyzes your Algorand wallet's history to establish baseline trust.
- Governance Participation: Users who contribute to the protocol (e.g., through lending or voting) receive score multipliers.
- Transaction Volume: Frequent usage of the Irion ecosystem increases your total credit line over time.
Credit Tiers
| Tier | Score Range | Borrow APR | Max Credit Limit |
|---|---|---|---|
| Bronze | 0 - 300 | 18% | 200 USDC |
| Silver | 301 - 600 | 12% | 1,000 USDC |
| Gold | 601 - 850 | 8% | 2,500 USDC |
| Platinum | 851+ | 5% | 10,000 USDC |
Loan Lifecycle & Impact
- Loan Initiation: A small score lock is applied when a loan is opened.
- Successful Repayment: Upon closing a loan, the locked score is released and a bonus is applied based on the loan size and speed of repayment.
- Defaults: Missing payments or reaching the
grace_perioddeadline results in significant score penalties, which may restrict future credit access across the entire Irion merchant network.
Improving Your Score
Users can monitor and manage their credit status via the Credit Dashboard.
[!NOTE] The
CreditScoreis non-transferable and tied to your Algorand account. Keeping your wallet secure is essential for maintaining your financial reputation in the Irion network.