Trust Bonds Docs

Introduction

Trust Bonds is a public good initiative created by former Kernel Block participants, introducing a novel approach to establishing and verifying trust in monetary bonds between individuals within the Web3 environment. This incentivizes coordination, allowing participants to earn a higher-than-market-average yield on their savings, creating a new primitive for social reputation.

For those unfamiliar with the term, public goods are Web3 resources or services that are accessible to everyone in a non-excludable and non-rivalrous way. That is, one person's use of a public good doesn't reduce the availability to others, nor can anyone be prevented from using it. In the real world, examples include public parks or access to clean air. In Web3, public goods are projects that benefit the entire ecosystem, aiming to aid the growth of decentralized technologies and their popularity.

Our Solutions

For this project, two Web3 solutions are being used:

• Aave: An open-source protocol used to create non-custodial liquidity markets to earn interest on supplying and borrowing assets with a variable interest rate.
• Gitcoin Passport: Provides an identity verification application and Sybil resistance protocol by aggregating various identity attributes such as social media verification or financial history. This creates a "digital passport" that can be used to participate in the application while reducing the risk of fake or duplicated identities—known as Sybil attacks.

How Trust Bonds Work

The project creates Trust Bonds, which are monetary bonds between two or more people who trust each other. Every participant contributes an equal amount of money to a shared account, and each of them has access to the total amount and can withdraw it at any time.

This works towards building trust and transparency in decentralized systems using these cutting-edge tools and helps users build on-chain reputation through their digital history and behavior recorded and verified on a blockchain. As all blockchain actions are transparent and immutable, users' interactions, contributions, and behavior with decentralized protocols will build up their reputation, allowing communities to assess trustworthiness without relying on traditional centralized institutions or other third parties.

Considering that when you form a Trust Bond with someone, you are also trusting them with a set amount of money, one can form different bonds of different values according to how much one trusts someone.