Spectral Finance claims to develop a credit risk oracle and loan underwriter that will serve as a middleware solution for the entire DeFi ecosystem. The credit ratings generated by Spectral will determine the amount of collateral required by a user. Spectral’s credit ratings are determined by three factors:
1. On-chain financial history in DeFi
2. Credit delegation by other users
3. Off-chain data points (optional)
Borrowers can leverage the credit score to purchase under-collateralized loans from leading DeFi protocols such as Aave or Compound. It’s still very early days for Spectral and currently doesn’t seem to have the dev team on the Github that the project of this sort needs.