The TEC Standard
The Tythe Enhanced Credit (TEC) standard is the protocol’s canonical framework for the tokenization of creditworthiness. It defines how raw on-chain telemetry and institutional verifications are transformed into Tokenized Creditworthiness (TCT)—a machine-enforceable financial-risk signal.
The protocol establishes creditworthiness through a three-layer sovereign risk engine, formally decoupling Compliance Eligibility,
I. The Gate: Compliance Eligibility
Role: : Compliance is a non-weighted prerequisite. The scoring engine remains dormant until the Compliance Gate is toggled to a True state via the TRIS registry.
Mechanism: Zero-Knowledge Attestations (zk-KYC via Privado ID).
Verification Anchors:
Sanction Screening: Non-exposure to restricted lists (OFAC/AML).
Proof of Personhood (PoP): Sybil resistance through World ID or similar biometric-anchored protocols.
DID Root: Successful binding of the TRIS ID to the
did:cheqdnetwork.
Protocol Note: Without a verified Compliance Gate, no TCT token can be minted or refreshed for the user, regardless of their on-chain activity.
II. The Metric: Behavioral Reliability
Role: Canonical creditworthiness signal (Range: 300–850)
Logic: Reliability is the definitive measure of on-chain character. It is calculated as a weighted aggregate of historical, real-time, and sophisticated behavioral patterns.
Relative Rank
The Rule: You can only enter the Excellent (800–850) bracket if your behavioral reliability is mathematically in the Top 10% (90th Percentile). Capital capacity cannot bridge a reliability gap; it can only optimize the output of your existing bracket.
Historical Performance: Prioritizes successful loan fulfillment over a 24-month window. Defaults carry a heavy decay factor.
Current Risk: Aggregates total liabilities across all mapped wallets against real-time collateral values (Liquidation-at-Risk).
Credit Utilization: Monitors the delta between current LTV and maximum permitted LTV to identify "edge" behavior.
New Credit: Analyzes the frequency of debt acquisition to detect predatory behavior or distress.
Credit Mix: Rewards sophistication based on interaction with complex vaults, LP management, and blue-chip protocols.
Volatility Quotient: Penalizes over-exposure to low-liquidity or high-volatility tokens.
Action Integrity: Quantifies "stickiness" through staking duration and governance participation.
Investor Status: Analyzes the retention of Real-World Asset (RWA) and institutional-grade portfolios.
III. The Multiplier: Capital Capacity
Role: Scale Multiplier & Credit Limit Underwriting Logic.
The Multiplier Effect: The Reliability Score is adjusted by a capacity-weighted coefficient within the bounds of the assigned bracket.
Retail (High Reliability): Top 10% behavior + Low Capacity = 803 TCT (Excellent, but lower MVV).
Whale (High Reliability): Top 10% behavior + High Capacity = 849 TCT (Excellent, with Maximum MVV).
Whale (Mid Reliability): 60th Percentile behavior + High Capacity = 739 TCT (Capped at the ceiling of the "Good" bracket).
Institutional Vouchers: Verified institutions (Banks, Fintechs, DAOs) may issue Credit Vouchers into the Unified Registry.
Logic: A Voucher acts as a cryptographic "vouch" that provides a direct multiplier to the user's Reliability score for specific markets.
Utility: Allows institutions to commoditize their off-chain due diligence as on-chain risk-alpha.
The Maximum Vouchsafed Value (MVV): Capacity dictates the user's $ credit limit.
Logic: A CEW Boost is only applied up to the user's verified MVV. This ensures the protocol never over-extends its "vouch" beyond the user's proven capital surface.
Capacity Input Markers:
Aggregate Net Worth: Real-time TVL across all mapped addresses.
LP & Staking Depth: Size and duration of provided DEX liquidity.
Verified Cashflow: Recurring on-chain rewards or zkTLS-verified off-chain income.
Transactional Weight: Analysis of average transaction size to distinguish heavyweight market participants.
The Collateral Asset Volatility Benchmark (CAVB)
The CAVB calibrates the risk-weighted "Volatility Quotient" of every TCT-enhanced position based on 180-day realized volatility and secondary market depth.
AAA (Pristine)
1.00x
These assets feature 24/7 instant redemption and deep, multi-billion dollar secondary depth. They represent the neutral rate of the Tythe ecosystem.
Major Stables, Tokenized, Gold, T-Bills, & Money Market Funds.
USDC, EURC, USDT, PYUSD, USD1, USDe, USDtb, USDG, RLUSD, USDD, U, DAI, TUSD, XAUt, PAXG, BlackRock BUIDL Fund.
AA (Blue-Chip)
1.15x
Core crypto and government-backed debt. The multiplier accounts for minor network/redemption latency and 1st-tier volatility benchmarks.
Foundational Cryptocurrency, Tokenized U.S. Treasuries (Short-Term), & Bank Demand Deposits.
BTC, ETH (includes all wrapped/LST/LRT versions: stETH, ezETH, cbBTC, etc.), Ondo USDY, & Ondo USTB.
A (Top-Alternatives)
1.35x
Assets with high intraday volume but subject to equity cycle or protocol-specific volatility. Requires 24/7 secondary market presence.
Top 1–40 CMC & Tokenized Stocks/ETFs.
XRP, BNB, SOL, TRX, BCH, AVAX, LINK, CC, HYPE, XMR, XLM, ZEC, HBAR, LTC, SUI, TON, CRO, WLFI, UNI, DOT, MNT, AAVE, TSLAon, Von, AAPLon, Metaon, Coinon.
BBB (Hard-Assets)
1.75x+
High-quality productive debt with verified underwriting. The multiplier reflects permissioned liquidity and potential redemption bottlenecks.
Top 41–100 CMC & Tokenized Private Credit/Invoices.
ARB, OP, ASTR, OKB, BGB, SKY, NEAR, ONDO, ICP, POL, MORPHO, WLD, H, ENA, QNT, DASH, VET, ZRO, CRV, IP, KITE, JUP, FIL, Maple Finance and Centrifuge funds.
BB (High-Retail)
2.50x+
Assets with similar price volatility but higher exit friction. Multipliers account for the long clearing cycles inherent in BB asset liquidations.
Top 101–150 CMC, Non-AAA Stables/Gold, Tokenized Real Estate, & Big Memes
INJ, SYRUP, TIA, GRT, PYTH, IOTA, BTT, AERO, LDO, MON, MYX, ENS, Mid-tier stables/gold, RealT property tokens, DOGE, SHIB, PEPE.
B (Speculative)
3.50x+
High-value collectibles with thin secondary liquidity. Significant haircuts protect the lender against appraisal delay or physical clearing during "Slash" events.
Top 151–300 CMC, Mid Memes, & Tokenized Physical Assets.
BONK, FLOKI, WIF, PENGU, SPX, MEME, FARTCOIN, 4K Protocol (Watches, Art, Commodities).
CCC (Junk)
5.00x+
Assets with unverified liquidity or self-reported supply. These assets provide zero TCT vouchsafe power and are excluded from creditworthiness calculations.
All other assets
All other assets
The TCT Lifecycle
Tythe utilizes a unified Registry of EIP-712 attestations to coordinate credit truth across all integrated markets.
Manual Refresh (Positive Growth): Users choose when to "Refresh" their score. The Tythe backend generates a signed EIP-712 Voucher, which the user anchors to their on-chain TCT balance and MVV limit.
Auto-Slash (Negative Enforcement): If a critical nEvent (Default, Liquidation, Exploit) is detected, Tythe bypasses the user and immediately updates the on-chain TCT balance to reflect the risk.
Relay Emitter: Every slash triggers a network-wide alert. Integrated CEW Wrappers listen for these events to instantly revoke discounts or adjust margin requirements.
nEvents (Negative Events)Standard Fields:
TRIS ID: The self-sovereign, decentralized identifier associated with the event.
Event Typology: The specific nature of the credit movement (see below).
TCT Delta: The precise numerical change to the tokenized creditworthiness (TCT) balance.
Epoch Timestamp: To ensure cryptographic sequencing and prevent replay attacks.
Event Typologies:
| Event Type | Nature | Enforcement Response |
| Liquidation | Collateral failure on integrated markets (e.g., Morpho). | Automated Slash: Immediate TCT reduction. |
| Default | Failure to fulfill a debt obligation within the grace period. | Hard Slash: TCT set to "Poor" or "Slashed" bracket. |
| Exploit | Verified involvement in smart contract or protocol attacks. | Blacklist: TRIS ID revoked; TCT set to zero. |
| Mercenary | Rapid liquidity withdrawal during periods of systemic stress. | Alert Only: Velocity Risk multiplier applied to TCT. |
| Informed | Patterned high-alpha trades indicating toxic arbitrage flow. | Alert Only: Metadata tag sent to integrated sCEW wrappers. |
| Whale | Objectively large on-chain transactions and transfers. | Alert Only: Metadata tag sent to integrated sCEW wrappers. |
Risk Brackets
The Smart Credit Enhancement Wrapper (CEW) translates the TCT balance into standardized economic actions.
800-850
Excellent
High Boost
740-799
Very Good
Moderate Boost
670-739
Good
Low Boost
580-669
Fair
Risk Neutral
300-579
Poor
Negative Adjustment
1
No Data
Conditional / Credit Invisible
0
Slashed
Hard Deny / Immediate Risk
Evolution: An Inclusive Standard
The TEC standard is designed to be evolving and predictive. As the protocol matures, new telemetry streams such as,
zk-verified bank statements, payroll and tax data,
cross-chain bridging history,
encrypted imports of FICO, CIBIL, and other centralized credit scores,
and verifiable credentials and zkTLS checks,
among other high-level signals are integrated into TCT scoring. This ensures that the TCT score becomes increasingly inclusive, allowing users with limited on-chain history but strong off-chain reliability to access on-chain capital.
Note: The protocol is currently operating under TEC-26 (launched in 2026). Future models (such as TEC-28) will be designed as per market shifts for specific demands, and will be put into effect pending a successful proposal made to the Tythe DAO.
FAQs
Why should we trust Tythe's TCT Score?
Unlike legacy credit scores, TCT is built on determinism and transparency. Every score update is backed by a verifiable on-chain event or a cryptographic zk-proof. The math and code is open-source, ensuring that the signal is objective, transparent, and resistant to manipulation.
Does Tythe have the authority to freeze funds?
No. Tythe is a neutral, risk-intelligence layer, not a custodian. Tythe only has the authority to slash TCT balance (it does not even possess the authority to tokenize creditworthiness) based on user behavior. Lenders and markets make their own decisions on whether to freeze or adjust user positions based on Tythe provided signals and recommendations.
How does Tythe prevent Sybil attacks?
Tythe binds credit to the TRIS ID, which requires a unique zk-KYC verification and Proof of Personhood. While a user can have multiple wallets, they all map to a single, root identity. This ensures that credit power cannot be artificially multiplied across fake accounts.
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