DeFi-based Protocol Arcx has just launched the latest upgraded version of its DeFi passport named Sapphire in hopes of giving life to newer DeFi products.
The upgraded DeFi passport named Sapphire V3 will also allow its users to help create and properly verify a reputation profile on the system so that they can be easily identifiable on the network based on the amount of positive reputation they have built up. Arcx made announcements on the 2nd of June, stating that the passport system will provide users with a score in the range of 1 to 1000, marking their reputation level on the network. This will not only encourage users to build up a reputation but will also create a competitive environment that is fun to explore around.
Sapphire v3 will also enable minimal collateralized crypto loans for its users if the users desire to seek loans without sacrificing much. Arcx says that without these passports, every user is managed in the same way, which leads to consideration to institutional support, wallet capacity or others, very preference-based.
Having positive expectations, Arcx thinks that this Sapphire will be utilized by a variety of different DeFi protocols. Projects can benefit from the loans without putting in too much collateral and also receive farms that produce high amounts of yield, awarding users with the higher score, marking their reputation on the network. Sapphire is looking very promising as it will surely help in the development of the DeFi sector, using its feature set to boost competition and stimulate faster development.
Different types of scores will be given according to a variety of activities, including Airdrop Score, Yield Score and Trade Score. Trade scores will determine if the user is using bots for trading. If not, then the user might be offered a reduced trading fee.
Comments from the outside
Co-Founder and CEO of Maple Finance, Sidney Powell, commented on Arcx’s Sapphire passport, saying that it will definitely help Sapphire users in receiving low collateral loans if they so desire. Sidney also said that the reputation system is a great feature, but if the passport has used zero-knowledge proofs, then it will definitely attract more users to Sapphire, giving users the confidence to share details about themselves outside the chain, helping confidential information to maintain its integrity. Sidney emphasized that Arcx should keep the loans affordable to keep their promise of low-collateral loans.