Credit

Credit supplies USDC from one World Chain ERC-4626 vault to undercollateralized retail borrowers admitted by an off-chain coordinator using World ID and credit scoring. On 2026-08-16 DefiLlama measured about $0.011M of cash against $0.668M borrowed. Borrower selection, repayment enforcement and coordinator solvency controls are not continuously reconstructable from the vault, so the shared version-1 off-chain-credit dossier is more fundamental than the separate size and utilization failures.

Review triggers: events that reopen the verdict
• Borrower-level underwriting, defaults, recoveries and repayment enforcement independently verified by cohort
• Coordinator assets, liabilities, controls and incident record continuously disclosed
• Proposed-size stressed USDC redemption completes without new lender funding

Watched nightly: a warning on its venues or files, or a cited document that changes, reopens the memo. The first confirmation is due 2026-11-16.

The research file

Mechanism and exact product perimeter

The surveyed product is the USDC ERC-4626 vault at 0xcE4602C16f6e83eEa77BFb3CCe6f6BCE9EcBb92E on World Chain. Suppliers receive vault units whose value increases with repayments and decreases with defaults. Borrowers receive undercollateralized peer-to-pool loans rather than posting promptly liquidatable collateral. The DefiLlama adapter measures idle USDC as TVL and the difference between totalAssets and cash as borrowed exposure; this memo does not cover an inferred second vault or another chain.

Underwriting, authority and loss applicability

The Zellic assessment states that loan issuance requires an off-chain coordinator signature after checking the borrower’s credit score and World ID verification. It also records that the coordinator was outside the audit scope and identifies Permit2 repayment assumptions that a borrower can invalidate or evade by moving repayment tokens. Credit’s own interface tells suppliers that defaults reduce position value. Those off-chain admission and enforcement dependencies directly satisfy the shared off-chain-credit dossier.

Current liquidity and lifecycle

The DefiLlama API read on 2026-08-16 reported approximately $11,316 of available protocol TVL and $668,191 borrowed on World Chain. Credit remains live and its interface exposes supply, redemption, utilization, repayment and default-loss disclosures. Redemption is expressly for pending USDC liquidity, so the aggregate borrowed balance is not immediately executable exit depth and a rush to redeem can queue behind borrower repayment.

Why the credit dossier decides

Small loan sizes and World ID uniqueness do not make borrower income, liabilities, willingness to repay or enforceable recovery continuously observable on-chain. The shared version-1 off-chain-credit dossier therefore controls before the additional scale and utilization defects. Reopen only with independently verified underwriting performance by score band, cohort defaults and recoveries, coordinator controls and incidents, enforceable repayment rights, reconciled reserves and losses, and a proposed-size stressed redemption without new lender funding.

Class rule

The off chain credit class is outside the approved structures, so every protocol in it is not approved until the rule changes. The rule is about the structure, not an adverse finding about this protocol, and it is not a client instruction. The events that would reopen it are listed with the memo.

Sources

The claims above trace to these. Where a number could not be independently verified, the thesis says so.

• Credit — live vault and risk disclosures · primary · accessed 2026-08-16
  Supports: undercollateralized lending, World Chain, USDC vault, supplier losses, pending-liquidity redemption, live lifecycle
• Zellic — Credit contracts security assessment · primary · accessed 2026-08-16
  Supports: coordinator signature, credit score, World ID, Permit2 repayment, coordinator audit boundary, default risk
• Worldscan — Credit ERC-4626 vault · primary · accessed 2026-08-16
  Supports: deployed vault, World Chain, deposit and redemption activity, verified contract
• DefiLlama — Credit adapter · secondary · accessed 2026-08-16
  Supports: exact vault address, cash accounting, borrowed accounting, single-vault perimeter
• DefiLlama — Credit survey record · secondary · accessed 2026-08-16
  Supports: current cash TVL, current borrowed balance, World Chain perimeter, Lending category

Inherited controls

The research above describes the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The layer with the most administrative power sets the position’s effective control; that describes control, not quality or suitability.