We are excited to announce that Zeru's groundbreaking new product, zScore, is now live on testnet backed by the zScore EigenLayer AVS (Actively Validated Service). This marks a major milestone as we prepare to bring the world's first decentralized, AI-powered credit infrastructure to the Web3 and DeFi ecosystems.

What is zScore?

zScore is a revolutionary new service that computes your on-chain credit score based on your past borrowing and repayment history. By leveraging the power of artificial intelligence and decentralized technology, zScore provides a transparent, unbiased, and secure way to assess creditworthiness in the blockchain ecosystem. Generating and updating your zScore is done at the wallet level, and does not require identity verification or KYC processes. To begin, we are allowing users to generate their first zScore based on their history of using the Aave protocol since 2020.

Generate your zScore now at https://myzscore.ai.

Why Credit Score Decentralization Matters

In the traditional financial system, credit scores are controlled by centralized entities that often lack transparency and are prone to bias, and incomplete or even inaccurate data that’s difficult to get updated. By decentralizing credit scores, zScore puts the power back in the hands of individuals, ensuring fairness and equal access to financial opportunities. Users choose which wallet to use and build up their history, therefore generating a positive borrowing and repayment history, and DeFi protocols choose whether to enable zScore integration. Where this synchronicity occurs, there is no doubt users and protocols will see more usage, more fees, and higher yields.

Traditional credit infrastructure has spurred over $4.5 trillion dollars in economic activity including personal loans, business loans, credit cards, education loans, mortgages, and more. There is a similar opportunity in Web3, where onchain credit infrastructure can add trillions of dollars of activity onchain and have a massive, positive impact on people’s lives.

How zScore Works

zScore utilizes a neural link AI model to analyze on-chain data corresponding to a user's wallet. By examining past borrowing and repayment behavior, the model generates a credit score reflecting the probability of the user getting liquidated. A high zScore indicates a low risk of liquidation, making the user a more attractive borrower. A low zScore indicates a high risk of liquidation or default, and therefore that user will continue to take out overcollateralized or partially collateralized loans until they prove their creditworthiness. Since zScore is a SoulBound Token, it cannot be transferred to another wallet or burnt. Browse through Zeru’s documentation for more information.

Unlocking New Possibilities in DeFi

zScore has the potential to revolutionize the DeFi lending and borrowing landscape. By integrating zScore, incumbent protocols can increase their Loan-To-Value (LTV) ratios, enabling users to access more capital while maintaining a safe level of risk.

While many protocols are currently experimenting with reputation-based scoring models, zScore as a Service (zSaaS) offers a more reliable, AI-driven alternative that’s already onchain and ready for adoption.

Several next-generation DeFi protocols are already exploring potential use cases for zScore, with details to be announced following DevCon 7. Additionally, Zeru's own DeFi super app, now in testnet, will utilize zScore to offer users access to leveraged money markets.

Unlocking New Frontiers: What’s Next for zScore

Looking forward, Zeru plans to implement zkTLS (Zero-Knowledge Transport Layer Security) to bring existing, traditional credit scores to the blockchain, which will allow users to link real-world credit data onchain—securely and anonymously. This feature is set to open doors for real-world applications like crypto credit cards, a significant advancement in DeFi accessibility and utility. With zkTLS, users can verify their creditworthiness onchain while preserving their privacy, making zScore a comprehensive solution for a decentralized financial world.

Call to Action for EigenLayer Operators

As we gear up for the mainnet launch of zScore, we invite operators to opt-in to provide their services to the Zeru zScore AVS, enhancing the security of zScore and its availability.

Join us on the frontlines of the decentralized credit revolution with zScore. Together, we can build a more inclusive, transparent, and empowering financial future. You can reach us over Discord and Telegram!

Learn more:

• 🌎 Website: https://zeru.finance/

• 🐦 Twitter: https://x.com/zerufinance

• 📚 Discord: https://discord.gg/XkYjDGVwJQ

• 📢 Telegram: https://t.me/zerufinancediscussions