# Methodology

The Regenerative Credit Curation Framework (v1.0) is the intellectual backbone of USDREFI. It is a structured, repeatable methodology for evaluating on-chain credit originators. Every lending source that feeds USDREFI yield must pass through this framework.

This is what makes USDREFI "regenerative" — not by label, but by verified standard.

## Three Core Standards

Every originator is evaluated against three non-negotiable standards:

* **Financially Sound** — The originator operates with integrity, transparency, and sustainable credit practices. Loan structures are fair, default histories are disclosed, and on-chain verifiability is present.
* **Socially Just** — Loans reach genuinely excluded borrowers and produce measurable improvements in their lives. This means real financial inclusion, not just fintech with a green label.
* **Ecologically Safe** — Credit flows avoid planetary harm and ideally finance regeneration. Lending sectors are evaluated against ecological ceilings and resource use impacts.

## The Minimum Bar

To be included in the USDREFI basket, an originator must achieve a **Bennett Average of 1.5 or above**, placing it in the "Sustainable DeFi" classification at minimum. This means the originator demonstrates a genuine inclusion mission with real, measured outcomes.

Originators scoring below this threshold — or scoring 1 (Conventional) across all Bennett dimensions — are not eligible, regardless of their financial returns.

## Governance & Re-evaluation

All active positions are reviewed on an **annual cycle**, with triggered re-evaluations for material changes such as ownership transitions, defaults, rate changes, or new impact data.

Automatic downgrade review is triggered by:

* PAR 90 exceeding 25% for two consecutive quarters
* Unresolved defaults
* Loss of key institutional backing

New protocols must complete all gates before any allocation, with minimum documentation including audited pool data, rate disclosure, borrower profile, and originator KYB.