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Overview

Enable undercollateralized or reduced-collateral lending based on borrower reputation and ZKScore.

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Implementation

async function calculateCollateralRequirement(borrower, loanAmount) {
  const score = await zkScore.getScore(borrower);
  const baseCollateral = loanAmount * 1.5; // 150% base
  
  if (score.total >= 800) return loanAmount * 1.1; // 110%
  if (score.total >= 600) return loanAmount * 1.25; // 125%
  if (score.total >= 400) return loanAmount * 1.4; // 140%
  
  return baseCollateral;
}

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Benefits

  1. Lower Collateral: High-reputation users need less collateral
  2. Better Rates: Reward trustworthy borrowers
  3. Risk Management: Score-based risk assessment
  4. Default Prevention: Higher scores correlate with repayment