In the TradFi system, mortgage loans have always been the mainstream model, but this approach has the problem of excessive risk concentration. When asset prices experience significant fluctuations, the entire financial system can fall into an unstable state. However, an emerging financial model is changing this situation by using income as the basis for credit and diversifying risks across various cash flows.

This innovative model utilizes smart contract technology to dynamically calculate credit limits and risks, making the system more flexible and better able to adapt to actual economic conditions. This means that the financial ecosystem can withstand greater market fluctuations and is no longer overly reliant on a single asset collateral.

The core of this model lies in building a brand new credit system, which is not just a token, but also the driving force behind the operation of the entire credit ecosystem. This design showcases the immense potential of integrating credit mechanisms on the blockchain with the real economy.

In the long run, this income-based credit model provides a more sustainable and robust development foundation for decentralized finance (DeFi). It is driving on-chain finance from high-risk speculative games to practical economic tools.

This innovation is expected to not only enhance the stability of the financial system but also open the door to more people for accessing credit. By linking credit assessment to personal income rather than solely relying on asset collateral, this model may create opportunities for groups that have traditionally struggled to access financial services.

With the development and improvement of this model, we may witness significant changes in the DeFi ecosystem. It could bring more inclusive and resilient financial services, opening new avenues for the application of blockchain technology in the real economy. This is not only an innovation in financial models but also a beneficial exploration of the future operating methods of the economy.