0xCollateral

Since the advent of DeFi, one core problem has remained unsolved: There’s been no way to take out a true Web3 loan. To borrow Web3 assets, users have always had to lock up their own crypto—often overcollateralizing their positions.

We’ve found a way to leverage your Web2 creditworthiness to enable Web3-native loans—without KYC, without identity checks, and with a fully permissionless experience.

The value proposition is clear: Traditional credit power, now usable in DeFi.

The project is built around bank card pre-authorizations, which we use as collateral for Web3 loan positions.

No matter who you are or which country you're in—as long as your bank card allows spending, we can use that available credit as collateral for your loan.

Think of how Booking.com or Airbnb might ask for a pre-authorization on your credit card. In this process, the amount isn’t debited immediately, but it’s temporarily locked and reserved for the merchant. It may never be used, but the merchant (in this case, us) has guaranteed access to that amount if needed.

Using Vlayer, we generate decentralized proofs of credit card pre-authorizations. These cryptographic proofs are then used to collateralize borrowing positions on our protocol.

If a borrower needs to be liquidated, the liquidator can request the protocol to debit the borrower's credit card, and receive the equivalent amount in the protocol’s stablecoin.

The rest of the protocol is built using Solidity smart contracts, deployed on the Sepolia Ethereum testnet. These contracts implement a slightly simplified version of the Aave V1 architecture.