The Credit Scoring Mechanism is designed to evaluate the creditworthiness of borrowers in the crypto-backed loans ecosystem. By leveraging on-chain data, such as transaction history, wallet balances, and previous borrowing behavior, this mechanism provides a comprehensive assessment of a borrower's financial reliability. This feature aims to enhance risk management by enabling lenders to make informed decisions based on real-time data, thus reducing the likelihood of defaults and improving the overall stability of the lending platform.