🧠 Wallet Risk Scoring (Compound V3)

This project aims to analyze DeFi user behavior on the Compound V3 protocol and assign a risk score (0–1000) to each wallet address. The scoring logic is based on historical on-chain activity like borrows, repayments, collateral usage, and protocol interaction frequency.

🚀 This assignment was built using Python and real-world DeFi concepts. It includes full data preprocessing, feature extraction, scoring, and bonus visualizations to provide deep wallet-level insights.

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📊 Project Highlights

• ✅ Parses wallet activity from Compound V3
• ✅ Calculates a risk score for each wallet (0–1000)
• ✅ Uses on-chain events like:
  • Borrows, Repayments
  • Supplied Collateral
  • Liquidation risk
  • Interaction frequency
• ✅ Generates a final CSV output: wallet_risk_scores.csv
• ✅ Includes interactive visualizations (bar charts, risk distribution, top risky wallets)

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🧠 Scoring Logic

The scoring is based on a mix of heuristics:

Feature	Description
📈 Borrow Volume	Higher borrowing = higher risk
💸 Repayment Timeliness	Late repayments = penalty
🏦 Collateral Usage	Low collateral = high liquidation risk
🔁 Activity Frequency	Inactive wallets = penalized
🚨 Liquidation Events	Direct risk indicator

All features are normalized and combined into a weighted risk scoring formula.

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📂 Project Structure

wallet-risk-scoring/
│
├── main.py                 # Extracts wallet activity & saves CSV
├── score_wallets.py        # Scores wallets based on logic
├── visualize_scores.py     # Plots graphs from final scores
├── config.py               # Configurations for weightage & thresholds
├── utils/                  # Utility functions (parsing, formatting, etc.)
│
├── real_wallets.csv        # Raw input wallet list
├── compound_v3_wallet_data.csv  # Cleaned dataset
├── wallet_scores.csv       # Final output with scores
│
├── sample-output.png       # Screenshot of score visualizations
├── README.md               # You’re reading it 😊
├── LICENSE
└── requirements.txt


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## 🧪 Tech Stack

- 🐍 Python 3.10
- 📡 Compound V3 API
- 📦 Pandas, Requests
- 📈 Matplotlib & Seaborn (Bonus Visuals)

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## 📄 License

This project is licensed for educational and internship assignment use only.