Data Aggregation and Normalization
The Credmark protocol uses a combination of cloud and blockchain services to create, test, and execute data models on a normalized, curated data set from distributed providers. It then allows a variety of mechanisms to consume the outputs of the models, configured by a set of decentralized governance mechanisms.
Figure 1: Credmark Architecture
In order to produce consistent, high quality data models with sufficient predictive capacity in their risk assessment, it’s imperative that the availability of high quality normalized data is open to all potential model creators. Without this, model contributors will spend an excessive amount of time focused on optimizing their models with subpar results once they’re used in the real world.
To amend this issue, the Credmark platform will provide a set of normalized data sources and allow model contributors to focus on what they do best. This will be done through a three-step process of data acquisition, normalization, and governance dictated by standard access methods.
Credmark ingests a subset of already indexed data sources such as The Graph(11) and Dune Analytics(12), as well as direct RPC queries to EVM based blockchains, cached and with proof executed via a semi-proprietary cloud port of Trueblocks(13). This data will then automatically go through the normalization process and thus be in a prepared format for model contributors to use immediately via the SDK’s standard access methods.
The set of data sources will empower model contributors to tackle building models for the most popular Web3 applications at the time of release. For example, one of the first data sets that will be available will enable the 6 creation of effective models to solve the liquidity risk problem for Uniswap V3. This will address the needs of liquidity providers by making it trivial to choose liquidity ranges which limit impermanent losses while also maximizing profits.
In order to maintain long term stability, governance will determine additional datasets to be added to the platform. Credmark’s data standardization layer abstracts the problem of unique data sources providing disparate APIs which do not deliver normalized data. This normalized data can then be added directly to the Credmark API. Governance provides the benefits of both decentralization together with the agileness of being able to adjust over time as data sources become available.
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