Reputation / Loyalty Point

What is Reputation Score?

Despite this robust development of Web3, the evaluation of user engagement and inter-dApp relationships remains hidden. Therefore, Centic provides Reputation Scores, a scoring model that gauges the engagement of entities within a project’s ecosystem.

The objects of this scoring model are user wallets, smart contracts, and various dApps:

  • Wallet Reputation: Evaluate the loyalty level of users towards a project’s ecosystem.

  • Project Reputation: Assess the relevance of other dApps with a project (smart contracts are counted in Project Reputation as they belong to projects).

The Use Cases of Reputation Score

Reputation Scores offer distinct advantages to organizations, with key benefits that enhance the backbone of Web3 projects. Take the Wallet Reputation as an example. Web3 projects can rank and group crypto wallet addresses to identify their potential users. For instance, Wallet Reputation to a token T (i.e., wallet T-reputation) evaluates the loyalty of holders to the token T, showing the trust and reputation of the holder in the community. A holder who owns many tokens over a long period will have a high reputation.

Beyond assessing the reputation of wallets tied to a specific token, this scoring model considers how wallets interact with products within a project’s ecosystem, revealing different levels of user activeness.

How is Reputation Score calculated?

This scoring model is calculated by two methods: the Scorecard Model and the PageRank Algorithm

Scorecard Model

Wallet reputation to a token T (i.e., wallet T-reputation) is a parameter to evaluate the loyalty of holders to the token T, showing the trust and reputation of the holder in the community. A holder who owns a large number of tokens over a long period will have a high reputation.

Wallet reputation to a token T is calculated by 4 main parameters as follows:

  • Token balance: The value of total assets that the wallet possesses.

  • Wallet history: This parameter is calculated based on the duration and value of digital assets the wallet possesses.

  • Wallet behavior: The behavior of wallets is identified by their crypto assets flow, particularly, transferring transactions.

  • Wallet credit score: Credit score is also a factor affecting the reputation of wallets. This parameter evaluates the credit history and ability to pay crypto loans.

More scoring models are on the way.

Pagerank Algorithm

PageRank Algorithm is a tool for ranking web pages on Google Search based on the number and quality of links pointing to them. It plays a key role in helping Google deliver qualified results. Therefore, Centic leverages this algorithm to more precisely evaluate entities’ reputations in a project’s ecosystem.

Within our constructed Knowledge Graphs, Web3 entities are connected through relationships and interactions. The PageRank Algorithm takes these connections into account, contributing to a comprehensive ranking of entities.

Results showcases the rank of Token Contracts on Aave reputation Score

$WETH (Wrapped Ether) and $WBTC (Wrapped Bitcoin) are the Digital Assets that gain the highest Aave user's preference & interaction.

Rank

Token Name

Score

Depositor

Deposit Amount

Borrower

Borrow Amount

1

WETH

144,272

9,202

$1,487,639,512

1,456

$926,786,230

2

WBTC

92,172

5,677

$1,167,532,784

569

$162,724,618

3

USDC

61,432

2,582

$728,546,551

4,715

$671,301,221

4

WMATIC

58,578

2,859

$30,393,523

594

$19,902,804

5

USDC.E

53,990

2,434

$83,629,611

3,816

$68,116,933

The Statistics of Wallet Reputation in Aave Ecosystem

Most of user wallets joining Aave Ecosystem possess $1K-$10K worth of crypto assets, while ~10% of the total have above $100K.

Among 44K+ Aave users, 3.4K+ ones show loyalty toward Aave which is above the fair level.

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