Lending Trust Scores

A Party Host's Decentralized Lending Trust Score (DLTS) is built by way of three important factors:

1. The amount of unique stakers in their party (40% weight)

2. The amount of FAVORs staked on their party (20% weight)

3. Loan repayment history (total value + amount of loans) (40% weight)

Each factor has its own weight in determing a Lending Trust Score. The LTS of a Party Host is an important signal to be taken in consideration when voting on their loan proposal.

Lending Trust Scores will take time to build and won't be an important factor while the PartyNode network bootstraps itself. As the foundation of the network is established through successful loan repayments, Lending Trust Scores will become continuously more vital to the success of loan approvals.