> For the complete documentation index, see [llms.txt](https://glossary.ecsa.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://glossary.ecsa.io/distributed-credit-protocol.md).

# Distributed credit protocol

A protocol for credit issuance and clearing: agents issuing collateralised credit enable transactions to be cleared on network ledgers. By issuing and accepting liquidity tokens [Economic space agent](/economic-space-agent.md)s gain the capability to enter the distributed credit and clearing network. Reciprocal issuance of liquidity tokens involves offers of credit. When matched by an acceptance, credit is granted to enable the network’s ledger to be netted (balanced) efficiently without a central clearing house. The protocol gives everyone in a network the right and responsibility to enable smooth functioning of economic relations. It gives everyone the right to issue “money” based on the production of a value (care, research, knowledge, environmental impact, etc.), making thus liquid heterogeneous value forms, thus making possible the creation and circulation of new collective values. A.k.a. Distributed liquidity protocol.