The Avarta system is designed to be used for Decentralized Finance (DeFi) and Metaverse applications. One of the drawbacks of blockchain’s trustless nature is that users don’t retain a reputation or credit rating. On top of that, the fluctuations in the price of cryptocurrency represent a risk when it comes to lending or investing against crypto assets. As a result, DeFi applications often need to overcollateralize to compensate for fluctuations and for the fact that there is no identification of the investor or borrower.
Avarta integrates data collected by people’s mobile devices to create the Avarta Trust Score for a safer and more equitable world. The storage and control of transactions by the user enables cryptocurrency traders and investors to develop credit histories that increase efficiencies across the DeFi space.
$AVARTA is the cryptographic token on the Avarta ecosystem. The token opens the door to a payfor-use model for all services and transactions, as well as rewards tiering and governance within the full Avarta ecosystem and its associated solutions.
$AVARTA can be earned when participants add liquidity to Avarta’s DEX liquidity pool. Avarta will create a staking contract that is activated when LP shares generated from liquidity providers are deposited into the AVARTA staking contract. AVARTA is paid into the staking pool and earned by LP miners based on their pro-rata share in the staking pool.