**AUTHOR**

Chris Brookins, Co-founder of RociFi

**ABSTRACT**

The credit score analysis is meant to build atop of *Defishy* existing analytics regarding borrowers ‘at-risk’ of liquidation. This analysis drills into a borrower’s riskiness based on their credit score, i.e. likelihood of default (or liquidation in case of Euler).

User level risk analysis is complimentary to protocol level risk management as borrowers with strong credit scores are risk-minded, thus unlikely to let their loans be liquidated, even with unexpected market volatility.

**MOTIVATION**

By understanding liquidation risk from a user level (micro) and protocol level (macro), Euler can best assess true insolvency risk to the protocol.

Our post is meant to offer sample scoring and risk metrics to the Euler community of a few at-risk positions, currently.

We also provide an expanded version of our analytics via spreadsheet of a subset of *all* Euler users for further investigation by the community.

If the community finds value in the information provided, we can provide weekly updates to either at-risk positions or spreadsheet.

**AT-RISK ANALYSIS**

**Borrower** `0xef764BAC8a438E7E498c2E5fcCf0f174c3E3F8dB`

Per RociFi’s credit risk model, this address is rated a **3** out of 10, i.e. a *strong credit score*.

Historical activity across all of DeFi – not just Euler – include:

- 274 total borrows, all-time
- Wallet age of 1805 days
- $201M in total debt repaid, all-time
- Zero liquidations, all-time
- $14.7M debt outstanding to Euler

**The borrower has a strong credit score but current health factor of 1.01 is cause for concern. Despite the strong credit score, this position should be closely monitored until health factor increases.**

**Borrower** `0x324E0b53CefA84CF970833939249880f814557c6`

This address is rated a **3** out of 10, i.e. a *strong credit score*.

- 6 total borrows, all-time
- Wallet age of 1995 days
- $359K in total debt repaid, all-time
- Zero liquidations, all-time
- $3.1M debt outstanding to Euler

**The borrower has a strong credit score but current health factor is 1.01. However, the collateral and borrow asset are both USDC, which diminishes risk.**

**Borrower** `0xC814Db50d7543D0f4aA8d8e5ceDCF4A40f8DC7F9`

This address is rated a **4** out of 10, i.e. a *good credit score*.

- 15 total borrows, all-time
- Wallet age of 482 days
- $2.5M in total debt repaid, all-time
- Zero liquidations, all-time
- $1.1M debt outstanding to Euler

**The borrower’s good credit score, current health factor of 1.16, and collateral asset of USDC suggest low risk to the protocol.**

**Borrower** `0x28a55C4b4f9615FDE3CDAdDf6cc01FcF2E38A6b0`

This address is rated a **4** out of 10, i.e. a *good credit score*.

- 4 total borrows, all-time
- Wallet age of 482 days
- $58.7M in total debt repaid, all-time
- 3 liquidations, all-time
- $300 total liquidated, all-time
- $6.3M debt outstanding to Euler

**The borrower’s good credit score and health factor of 1.46 suggest less risk to the protocol.**