Kixago DeFi Credit Intelligence Platform

The Credit Bureau for Decentralized Finance

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Executive Summary

Kixago is the first real-time credit intelligence platform for crypto-native borrowers. We provide FICO-style credit scores (300-850 range), liquidation risk analysis, and actionable recommendations based on a wallet's complete DeFi lending history across all protocols and chains.

The Opportunity

$50B+ in DeFi lending positions exist today, yet:

• ❌ Banks cannot underwrite crypto-native borrowers
• ❌ Wealth advisors cannot verify client DeFi holdings
• ❌ Developers spend 2-3 weeks integrating each protocol
• ❌ Traders miss liquidation opportunities due to fragmented data

Our Solution

One API call returns:

• ✅ DeFi Credit Score (300-850, like FICO)
• ✅ Complete position data across Aave, Compound, MakerDAO
• ✅ Multi-chain aggregation (Ethereum, Base, Arbitrum, Polygon)
• ✅ Risk factor analysis with severity levels
• ✅ Liquidation scenarios (what-if price drop modeling)
• ✅ Actionable recommendations (immediate, short-term, long-term)

Response time: 1-2 seconds
Developer integration time: 5 minutes

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The Problem: The DeFi Credit Invisibility Gap

Traditional Finance Has Credit Bureaus

When a borrower applies for a loan, lenders check:

• FICO Score (300-850 range)
• Credit History (bankruptcies, late payments)
• Debt-to-Income Ratio
• Report Time: 3-5 days
• Cost: $30-50 per check

Result: Lenders can underwrite with confidence.

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DeFi Has NO Credit Bureau

When a crypto-native borrower seeks financing:

• ❌ No standardized credit score
• ❌ DeFi positions invisible to traditional finance
• ❌ No way to verify leverage or liquidation risk
• ❌ Manual analysis takes days (if possible at all)

Result: Banks decline crypto-native borrowers, even if they have $10M+ in DeFi collateral.

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The Data Fragmentation Problem

A single wallet might have positions across:

Protocol	Chains	APIs Required
Aave V2	Ethereum, Polygon	2 integrations
Aave V3	Ethereum, Base, Arbitrum, Polygon	4 integrations
Compound V2	Ethereum	1 integration
Compound V3	Ethereum, Base, Arbitrum, Polygon	4 integrations
MakerDAO	Ethereum	1 integration
TOTAL	—	12 separate integrations

Each integration requires:

• Custom ABI decoding
• Chain-specific RPC calls
• Token price oracles
• Health factor calculations
• USD value normalization

Time required: 2-3 weeks per protocol × 5 protocols = ~3 months

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Our Solution: DeFi Credit Intelligence API

Kixago provides the credit bureau layer for decentralized finance.

Core Value Proposition

GET /v1/risk-profile/0xWalletAddress

Returns in 1-2 seconds:

{
  "defi_score": 467,
  "risk_level": "High Risk",
  "total_collateral_usd": 2200000000,
  "total_borrowed_usd": 1900000000,
  "global_health_factor": 1.067,
  "global_ltv": 89.02,
  
  "risk_factors": [
    {
      "severity": "critical",
      "factor": "Imminent Liquidation Risk",
      "description": "Health factor 1.067 means position will be liquidated if collateral value drops 6.7%"
    }
  ],
  
  "recommendations": {
    "immediate": [
      "URGENT: Deposit $387M more collateral OR repay debt to raise health factor above 1.5"
    ]
  },
  
  "liquidation_simulation": {
    "scenarios": [
      {
        "event": "Collateral drops 10%",
        "status": "LIQUIDATED",
        "estimated_loss": "$218M in liquidation penalties"
      }
    ]
  }
}

No integration work. No multi-chain complexity. Just answers.

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DeFi Credit Scoring Methodology

The 5-Factor Scoring Model (300-850 Range)

Our proprietary scoring algorithm evaluates 5 weighted components:

Component	Weight	What It Measures
Health Factor	40%	Proximity to liquidation
Leverage Ratio	30%	Debt-to-collateral ratio (LTV)
Diversification	15%	Concentration risk (assets & protocols)
Volatility Exposure	10%	Collateral asset risk profile
Protocol Risk	5%	Smart contract maturity

Formula:

Internal Score (0-100) = Σ(Component Score × Weight)
Final Score = (Internal Score × 5.5) + 300

Result: FICO-style score between 300-850

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Component 1: Health Factor Score (40% Weight)

What it measures: How close a position is to liquidation.

Health Factor	Score	Risk Level
≥ 2.0	100	Extremely safe
1.5 - 2.0	80	Safe
1.3 - 1.5	60	Moderate
1.1 - 1.3	40	Risky
1.0 - 1.1	20	DANGER ZONE
< 1.0	0	Liquidated

Why 40% weight? This is the single most important metric in DeFi lending. Below 1.0 = instant liquidation.

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Component 2: Leverage Score (30% Weight)

What it measures: Loan-to-value ratio (debt ÷ collateral).

LTV Range	Score	Risk Level
0-30%	100	Minimal leverage
31-50%	80	Conservative
51-70%	60	Moderate
71-85%	40	Aggressive
86-95%	20	Very aggressive
> 95%	0	Extreme danger

Example: $1M collateral,$900K debt = 90% LTV = 20 points

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Component 3: Diversification Score (15% Weight)

What it measures: Concentration risk across assets and protocols.

Sub-component A: Collateral Concentration (50 pts max)

• Top asset < 40% of collateral: 50 points
• Top asset 40-60%: 35 points
• Top asset 60-80%: 20 points
• Top asset > 80%: 10 points

Sub-component B: Protocol Diversification (50 pts max)

• 3+ protocols: 50 points
• 2 protocols: 35 points
• 1 protocol: 20 points

Example: 100% weETH in Aave only = 30/100 (poor diversification)

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Component 4: Volatility Exposure Score (10% Weight)

What it measures: Risk from holding volatile collateral assets.

Asset Risk Weights:

• Stablecoins (USDC, DAI): 1.0x (safest)
• Blue chips (ETH, WBTC): 0.8x (low risk)
• Large caps (AAVE, UNI, LINK): 0.6x (medium risk)
• Liquid staking (weETH, wstETH): 0.5x (higher risk)
• Long-tail assets: 0.3x (highest risk)

Calculation:

Score = (Σ(Asset USD Value × Risk Weight) / Total Collateral) × 100

Example: $2.2B in weETH (0.5x weight) = 50/100

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Component 5: Protocol Risk Score (5% Weight)

What it measures: Smart contract and protocol maturity risk.

Protocol	Version	Score	Reasoning
Aave	V3	95	Most audited, $10B+ TVL
Aave	V2	90	Legacy but battle-tested
Compound	V2/V3	90	Proven, well-audited
MakerDAO	V1	95	Oldest DeFi protocol
Morpho	—	80	Newer but audited
Unknown	—	50	Higher risk

Weighted average across all positions.

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Real-World Example: The $2.2B Whale

Let's analyze actual wallet 0xf0bb...416C:

Position Summary

• Total Collateral: $2.2B (weETH)
• Total Debt: $1.9B (WETH)
• Health Factor: 1.067
• LTV: 89%
• Protocols: Aave V3 (Ethereum + Base)

Scoring Breakdown

Component	Score	Weight	Contribution
Health Factor	20/100	40%	8.0
Leverage	20/100	30%	6.0
Diversification	45/100	15%	6.75
Volatility	50/100	10%	5.0
Protocol Risk	95/100	5%	4.75
TOTAL	—	—	30.5

Final Score: (30.5 × 5.5) + 300 = 467

Risk Level: 🔴 HIGH RISK (450-549 range)

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Risk Analysis

Critical Risk Factors

• ⚠️ Imminent Liquidation Risk (-40 pts)
  • Health factor 1.067 = liquidation at 6.7% price drop
• ⚠️ Extreme Leverage (-30 pts)
  • 89% LTV leaves minimal safety buffer
• ⚠️ Concentration Risk (-15 pts)
  • 100% of collateral in single asset (weETH)

Liquidation Scenarios

Event	New Health Factor	Status	Loss Estimate
ETH drops 5%	1.014	Near liquidation	—
ETH drops 10%	0.961	LIQUIDATED	$218M penalty
ETH drops 20%	0.854	LIQUIDATED	$326M penalty

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Recommendations

Immediate (< 24 hours):

• 🚨 Deposit $387M more collateral, OR
• 🚨 Repay $291M debt to reduce LTV below 70%

Short-term (1 week):

• Diversify across Compound, Morpho
• Convert 20% to stablecoins

Long-term:

• Maintain health factor > 2.0
• Target LTV < 50%

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Use Cases: Who Uses Kixago?

1. Banks & Lenders (Credit Underwriting)

Problem: Borrower has $10M in DeFi collateral but no traditional credit history.

Kixago Solution:

const risk = await kixago.getRiskProfile('0xBorrower...');

if (risk.defi_score >= 700 && risk.global_health_factor > 2.0) {
  return 'APPROVED - Low risk DeFi profile';
} else if (risk.defi_score < 550) {
  return 'DECLINED - High liquidation risk';
}

Impact: Banks can now underwrite crypto-native borrowers with confidence.

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2. Wealth Advisors (Portfolio Verification)

Problem: Client claims "$50M in DeFi yield farming" - how do you verify?

Kixago Solution:

const profile = await kixago.getRiskProfile('client.eth');

// Show complete breakdown:
// - All positions across chains
// - Current yields
// - Liquidation risk
// - Recommended actions

Impact: Turn DeFi oversight into billable advisory services.

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3. Developers (Rapid Integration)

Problem: Building a DeFi dashboard requires integrating 12+ protocols.

Kixago Solution:

# One API call, complete data
curl -H "X-API-Key: $KEY" \
  "https://api.kixago.com/v1/risk-profile/0xUser..."

Impact: Ship in 5 minutes instead of 3 months.

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4. Traders (Liquidation Hunting)

Problem: Finding liquidation opportunities requires monitoring thousands of wallets across chains.

Kixago Solution:

const whales = ['0xWhale1...', '0xWhale2...', '0xWhale3...'];

for (const whale of whales) {
  const risk = await kixago.getRiskProfile(whale);
  
  if (risk.global_health_factor < 1.15) {
    alert(`Liquidation opportunity: ${whale} 
           Collateral: $${risk.total_collateral_usd}
           Buffer: ${risk.defi_score.liquidation_simulation.buffer_percentage}%`);
  }
}

Impact: Sub-100ms response times enable real-time monitoring.

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Competitive Landscape

Feature	Kixago	Covalent	The Graph	DefiLlama	Alchemy
Credit Scoring (300-850)	✅ Yes	❌ No	❌ No	❌ No	❌ No
Liquidation Scenarios	✅ Yes	❌ No	❌ No	❌ No	❌ No
Multi-Chain DeFi Positions	✅ Real-time	⚠️ Indexed	⚠️ Fragmented	⚠️ Surface-level	❌ No
Actionable Recommendations	✅ Yes	❌ No	❌ No	❌ No	❌ No
Response Time	1-2 sec	200-500ms	Variable	Variable	<100ms
Target User	Banks, Advisors, Devs	Developers	Developers	Consumers	Developers
Focus	Credit Intelligence	Wallet data	Indexing	Dashboards	RPC access

Key Differentiator

Kixago is the ONLY platform that provides credit intelligence, not just data.

• Covalent gives you wallet balances
• The Graph gives you indexed events
• DefiLlama gives you TVL charts
• Kixago gives you underwriting decisions

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Technical Architecture

graph TB
    A[API Request<br/>GET /v1/risk-profile/0x...] --> B{Multi-Chain<br/>Aggregation Layer}
    
    B --> C1[Ethereum RPC<br/>Own Node]
    B --> C2[Base RPC<br/>Own Node]
    B --> C3[Arbitrum RPC<br/>Alchemy]
    B --> C4[Polygon RPC<br/>Alchemy]
    
    C1 --> D1[Aave V2/V3<br/>Protocol Decoder]
    C1 --> D2[Compound V2/V3<br/>Protocol Decoder]
    C1 --> D3[MakerDAO<br/>Protocol Decoder]
    
    C2 --> D4[Aave V3<br/>Protocol Decoder]
    C2 --> D5[Compound V3<br/>Protocol Decoder]
    
    C3 --> D6[Aave V3]
    C4 --> D7[Aave V2/V3]
    
    D1 --> E[Normalization Layer]
    D2 --> E
    D3 --> E
    D4 --> E
    D5 --> E
    D6 --> E
    D7 --> E
    
    E --> F[Pricing Oracle<br/>CoinDesk + Chainlink]
    
    F --> G[Scoring Engine<br/>5-Factor Model]
    
    G --> H[Risk Analysis<br/>Liquidation Simulation]
    
    H --> I[Recommendations<br/>Generator]
    
    I --> J[Response Cache<br/>30-second TTL]
    
    J --> K[JSON Response<br/>< 2 seconds]

Infrastructure Highlights

• Own Ethereum & Base nodes - No third-party rate limits
• Real-time RPC calls - Not indexed/delayed data
• 30-second caching - Balance speed and freshness
• Concurrent fetching - All chains queried in parallel
• Intelligent retry logic - Exponential backoff on failures

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Roadmap

✅ Phase 1: MVP (Complete)

Timeline: Q4 2024 - Q1 2025

• ✅ Aave V2/V3 integration (4 chains)
• ✅ Compound V2/V3 integration (4 chains)
• ✅ MakerDAO integration (Ethereum)
• ✅ DeFi Credit Scoring (300-850)
• ✅ Liquidation scenario modeling
• ✅ Multi-chain aggregation
• ✅ RESTful API with OpenAPI docs

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🚧 Phase 2: Advanced Intelligence (Q2-Q3 2025)

Features:

• 📊 Historical scoring - Track credit improvement over time
• 🔔 Real-time alerts - Webhook notifications when health factor drops
• 📈 Yield optimization - Find best rates across protocols
• 🌐 Additional protocols - Morpho, Spark, Euler
• 🔗 Additional chains - Optimism, Avalanche, Solana

Developer Tools:

• TypeScript SDK
• Python SDK
• GraphQL API
• Postman collections

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🔮 Phase 3: Enterprise & Institutional (Q4 2025+)

Features:

• 🏦 Bank-grade reporting - Regulatory-compliant credit reports
• 📄 PDF exports - Professional credit reports with branding
• 👥 Multi-wallet portfolios - Track entire organizations
• 🔐 SSO & RBAC - Enterprise authentication
• 📊 Custom scoring models - Tune weights for your risk appetite
• 🌍 On-premise deployment - For compliance requirements

Integrations:

• Salesforce CRM
• Plaid
• Experian API
• FICO Platform

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Pricing Strategy

Tiered SaaS Model

Tier	Price	Requests/Month	Target Customer
Developer	Free	10,000	Indie developers, testing
Startup	$49/mo	100,000	DeFi apps, bots
Institution	$499/mo	1,000,000	Banks, advisors, funds
Enterprise	Custom	Unlimited	Fortune 500, on-premise

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Revenue Projections

Conservative Case (Year 1):

• 500 Developer (free)
• 50 Startup ($49/mo) = **$2,450/mo**
• 10 Institution ($499/mo) = **$4,990/mo**
• Total Year 1 ARR: $89,280

Growth Case (Year 2):

• 2,000 Developer (free)
• 200 Startup = $9,800/mo
• 50 Institution = $24,950/mo
• 3 Enterprise ($5K/mo) = **$15,000/mo**
• Total Year 2 ARR: $597,000

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Go-to-Market Strategy

Target Segments (Order of Attack)

1. Developers (Wedge Strategy)

Why first? Easiest to acquire, generate word-of-mouth.

Tactics:

• Free tier (10K requests/month)
• Open-source examples on GitHub
• Integration guides for popular frameworks
• "Show HN" launch on Hacker News
• DEV.to tutorials
• YouTube integration walkthroughs

Metrics: 500 developers in first 3 months

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2. DeFi Trading Firms (Early Revenue)

Why second? Clear ROI, pay for value.

Tactics:

• LinkedIn outreach to quant traders
• Twitter ads targeting DeFi traders
• Case study: "How Firm X Found $50M in Liquidation Opportunities"
• Integration with TradingView, Dune Analytics

Metrics: 5 paid customers ($49-499/mo) in first 6 months

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3. Wealth Advisors (High-Value)

Why third? High willingness to pay, sticky customers.

Tactics:

• Partner with crypto-native advisory firms
• Webinars: "How to Bill for DeFi Portfolio Review"
• White-label reporting tools
• PDF export with advisor branding

Metrics: 10 advisory firms at $499/mo in Year 1

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4. Banks & Lenders (Enterprise)

Why last? Long sales cycles, but highest LTV.

Tactics:

• Case studies from early customers
• Regulatory compliance documentation
• On-premise deployment option
• Integration with Salesforce
• Direct sales to crypto desks

Metrics: 1-2 enterprise deals ($5-10K/mo) in Year 2

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Why Kixago Will Win

1. First-Mover Advantage

No one else offers DeFi credit scoring. We're defining the category.

2. Network Effects

As more developers integrate Kixago, the score becomes the standard (like FICO).

3. Data Moat

We're building proprietary risk models. The more positions we analyze, the better our scoring becomes.

4. Regulatory Tailwinds

As DeFi regulation increases, auditable credit intelligence becomes mandatory.

5. Developer-First DNA

Built by developers, for developers. We understand the pain points.

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The Team

Founders:

• [Your Name], CEO - Background in [your background]
• [Co-founder], CTO - Background in [their background]

Advisors:

• [DeFi Protocol Founder]
• [Blockchain VC Partner]
• [Former Credit Bureau Executive]

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Conclusion: The Future of DeFi Credit

Traditional finance has had credit bureaus for decades.
DeFi has none - until now.

Kixago is building the essential infrastructure layer that:

• ✅ Enables banks to underwrite crypto-native borrowers
• ✅ Empowers advisors to verify client holdings
• ✅ Saves developers months of integration work
• ✅ Provides traders with actionable intelligence

The market opportunity:

• $50B+ in DeFi lending today
• Growing 100%+ YoY
• Institutional adoption accelerating

Our ask:

• Try the API (free tier: 10K requests/month)
• Provide feedback on scoring accuracy
• Become a design partner for enterprise features

The DeFi credit revolution starts here.

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Get Started

• API Docs: https://docs.kixago.com
• Get API Key: https://kixago.com/dashboard
• Email: hello@kixago.com
• GitHub: github.com/kixago
• Twitter: @kixago

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© 2025 Kixago, Inc. All rights reserved.

This whitepaper is for informational purposes only. Kixago does not provide financial advice. DeFi credit scores are not substitutes for traditional credit reports and should not be used as the sole factor in lending decisions.