3Jane Protocol: Combining on-chain and traditional financial data, unsecured loan service based on credit assessment

The development of the decentralized finance (DeFi) lending market is limited by the over-collateralized lending model, while uncollateralized loans are only available in the institutional market or community credit systems. The 3Jane Protocol, through a credit-based lending mechanism, provides instant USDC credit lines and replaces the traditional on-chain collateral method with verified financial data, creating a new era of loans secured by future cash flows.

DeFi Lending Current Situation and Challenges

3Jane Protocol points out that the current DeFi lending market is divided into two extremes:

1. Over-collateralized Loans: Only applicable to specific DeFi assets, such as Aave or Morpho.

2. Uncollateralized Loans: Usually only provided to private credit institutions or institutional markets as a liquidity tool.

This model leads to a lack of effective credit expansion mechanisms in the DeFi industry, making it difficult for market participants with less capital but higher productivity to obtain funding support.

3Jane Protocol Uncollateralized Lending Solution

As an Ethereum-based DeFi credit lending market, 3Jane Protocol provides users with a service to deposit USDC and earn USD3 token rewards. At the same time, it allows borrowers to obtain USDC credit lines without the need for traditional on-chain collateral by connecting their Ethereum address and bank account:

3Jane achieves higher capital efficiency through its on-chain and off-chain credit scoring mechanism.

Delving into the whitepaper of 3Jane, you will find that the protocol has the following core functionalities:

Lending Market: Efficient Capital Flow in DeFi

First, the 3Jane lending market allows liquidity providers to earn interest and participate in profit distribution based on market changes by depositing USDC into the lending pool and minting USD3 or sUSD3.

Meanwhile, borrowers (traders, businesses, AI agents) can connect their bank accounts and crypto wallets to obtain instant credit lines.

Credit Assessment System: On-chain Assets, Traditional Finance Data and Future Cash Flow

For credit assessment, 3Jane uses its proprietary 3CA (3Jane Credit Assessment) algorithm to analyze the borrower's verifiable financial data (including on-chain DeFi assets, centralized exchange assets, bank deposits, and future cash flows).

In terms of on-chain assets, 3Jane integrates the on-chain credit scoring mechanism Cred Protocol and Blockchain Bureau to collect users' past transaction records, borrowing and repayment history, and liquidity provision status, and calculate their credit scores.

For traditional finance data, 3Jane uses zkTLS zero-knowledge proof technology to collect borrowing and repayment records and credit card debt, and obtains credit scores based on the traditional VantageScore 3.0 system. It also analyzes cash flow, income status, and asset data through the user's connected bank and CEX accounts.

Credit Default Management: How to Ensure Lending Safety?

To address defaulting or late-paying borrowers, 3Jane has the following measures:

1. Credit Score Slashing: If a borrower delays repayment, the system will reduce their credit score, affecting their future loan conditions.

2. On-chain Dutch Auction: If a borrower fails to repay on time, 3Jane will initiate an on-chain non-performing loan (NPL) auction, where a licensed US debt collector will bid to recover the debt, using partial exposure of the borrower's information and legal recourse to ensure debt collection.

Advantages of the 3Jane Protocol

1. Improved Capital Efficiency: Traditional DeFi lending requires over-collateralization, while 3Jane allows users to obtain credit limits based on their overall financial situation.

2. Expanded Lending Targets: In addition to traditional DeFi users, 3Jane also provides financing opportunities for enterprises, individuals, and AI agents.

3. Credit Risk Management: Through zkTLS zero-knowledge proof technology, the financial data of borrowers is verifiable and privacy-protected; at the same time, the encrypted economic security technology of EigenLayer is used to obtain credit verification and data credibility.

3Jane: May Provide Unsecured Credit Products for AI Agents

Currently, 3Jane Protocol's credit assessment is still asset-based, but in the future, it will further transition to cash flow-based credit assessment, allowing more high-productivity but asset-poor market participants to obtain loans.

Very cool. AI powered real-time unsecured USDC credit. The future is accelerating.https://t.co/K3S2m0ecnE

— Jeremy Allaire – jda.eth / jdallaire.sol (@jerallaire) March 11, 2025

In addition, with the rise of AI agents, 3Jane also plans to provide unsecured credit products for AI agents, further expanding the possibilities of the DeFi lending market.

(China's General AI Agent Manus Tested! Early Testers Think Financial Application Scenarios Perform Best, Some Media Start to Hype)

Through innovative credit assessment and unsecured lending models, the 3Jane Protocol breaks the limitations of traditional DeFi lending, providing market participants with more flexible and efficient financing channels. With the development of technology, 3Jane is expected to become a key infrastructure in the DeFi lending market, driving the economic expansion of the Ethereum ecosystem.