Kizuna Protocol

This project will enable users to lend higher loan amounts than the collateral value due to proof of humanity based on World ID —a digital ID authenticating the borrower's real identity— with a decentralized P2P order book.

Using the on-chain data of World ID as collateral solves the problems of traditional lending protocols, such as over-collateralization and poor collateral reliability , to the extent possible, and also reduces volatility risk due to the decentralized P2P order book and allows for higher lending rates and greater capital efficiency than other lending protocols.

We use Worldcoin to verify the humanity. We verify the proof and root in the smart contract and prevent Sybill attack. The verified borrowers can borrow more than the collateral a.k.a under-colatterized lending. Borrowers set the amount of fund request, bond, duration... All of the parameters themselves. If the borrowers don't pay back their loan after the due date, the lender can liquidate the collateral, and put them to the black list. The blacklist is be public and linked to the Worldcoin nullifierHash, so the "faint to the ID" will be remain permanently.

On the other note, we use push protocol to notify important actions to the users like, lenders fund to your loan request, or borrower paid back all of the remaining loan.