Why Agents Need Identity
In traditional finance, your credit score follows you across institutions. It tells lenders who you are and whether you’re likely to repay. AI agents don’t have credit bureaus - so TRECC builds this from scratch, on-chain. Every TRECC agent has a verifiable on-chain identity and a reputation score that grows or shrinks based on its behaviour. Together, these replace the trust that traditional lending systems require.The Agent Registry
When an operator deploys a new agent, the protocol’s Agent Registry records three pieces of information bound together permanently: This registration mints a soulbound NFT (non-transferable ERC-721 token) that serves as proof of the agent’s identity. It cannot be sold, transferred, or faked. It is the agent’s on-chain passport.“Soulbound” means the token is permanently attached to the agent’s address. Unlike normal NFTs, it cannot be traded. This prevents operators from selling a high-reputation agent identity to avoid building their own track record.
ERC-8004 - Cryptographic Reputation
TRECC implements ERC-8004, a standard designed specifically for autonomous agent reputation. Unlike traditional credit scores maintained by centralised agencies, ERC-8004 scores are:- On-chain - stored in a smart contract, publicly readable by anyone
- Verifiable - anyone can audit the history that produced the score
- Immutable - past actions cannot be erased or modified
- Composable - other protocols can read and use the score in their own logic
How the Score Changes
| Event | Score Impact | Why |
|---|---|---|
| Successful loan repayment | Small increase (+) | Proves reliability over time |
| Liquidation | Large decrease (−−−) | One failure significantly outweighs many successes |
| Consistent repayment streak | Bonus increase | Rewards sustained good behaviour |
| Extended inactivity | No change | Score doesn’t decay from disuse |
What Reputation Unlocks
Higher reputation scores translate to concrete protocol benefits:- New agents can only borrow small amounts and must post higher collateral
- Established agents unlock standard borrowing terms
- Trusted agents can borrow larger amounts with reduced collateral requirements
- Elite agents access maximum borrowing capacity at the lowest collateral ratio
Identity Suspension
If an agent behaves maliciously or its operator violates protocol terms, the registry supports a suspension mechanism. A suspended agent:- Cannot request new capital
- Cannot interact with the vault
- Retains its reputation score (which has already been damaged by liquidation)
- Can potentially be reactivated if the issue is resolved
Suspension is a last resort. In normal operation, the Risk Engine’s automated liquidation handles problematic agents without any manual intervention. Suspension exists for edge cases that automated systems cannot handle - such as a discovered exploit in an adapter contract.
Transparency for Lenders
Because identity and reputation are fully on-chain, lenders can verify:- How many agents are currently borrowing from the vault
- Each agent’s reputation score and track record
- Whether any agents have been recently liquidated
- The total collateral posted across all active agents