AaveArtVault

Our project is at the forefront of decentralized finance, pioneering a transformative solution for artists and creatives who grapple with the conventional barriers to obtaining loans. Positioned on the Aave v3 protocol, our platform leverages the strengths of this decentralized, non-custodial liquidity ecosystem.

Traditional financial institutions often reject loan applications from artists due to low credit scores and limited cash flow. To address this, we offer a lifeline by providing loans to artists, facilitated through stablecoins like GHO tokens and DAI. What makes our approach revolutionary is the collateralization process – we tokenize the artist's creations into NFTs (non-fungible tokens). These NFTs then serve as collateral for the loans, creating a groundbreaking fusion of decentralized finance and the burgeoning NFT market.

The integration with Aave v3 is a pivotal aspect of our platform. It empowers users to dynamically optimize their assets within the Aave Protocol, ensuring efficient yield generation and borrowing power optimization. This feature makes our platform not just a financial solution but a dynamic ecosystem that adapts to the needs of its users.

The NFTs representing the artist's work are listed on our platform, creating a unique marketplace for lenders. Investors can diversify their portfolios by lending money against promising artworks, fostering a symbiotic relationship between financial backers and emerging talents in the creative industry.

Artists, acting as borrowers, benefit from flexible repayment options. As their careers flourish and the value of their artworks appreciates, the repayment process becomes a collaborative journey between artists and lenders, aligning incentives for shared success.

In essence, our platform is a comprehensive solution that not only addresses the financial challenges faced by artists but also introduces a novel way to tokenize, trade, and support artistic creations. It's a visionary fusion of decentralized finance, stablecoins, and NFTs, fostering inclusivity, innovation, and empowerment within the creative economy. We aim to redefine how artists access capital, unlocking a world of possibilities for the next generation of creators.

The development of our decentralized collateralized lending and borrowing platform involved a meticulous integration of various technologies to ensure a seamless and innovative user experience.

Frontend: NextJS, TypeScript, and Chakra UI: We chose NextJS for its server-side rendering capabilities, coupled with TypeScript for enhanced code quality and maintainability. Chakra UI streamlined the design and styling process, providing a cohesive and visually appealing user interface.

Smart Contracts: Solidity on Sepolia Testnet: Our smart contracts, written in Solidity, form the backbone of the platform. Deployed on the Sepolia testnet, they enable secure and efficient interactions between users, ensuring the integrity of the lending and borrowing processes.

User Onboarding: ConnectKit, Alchemy, WalletConnect: To facilitate smooth user onboarding, we integrated ConnectKit, a powerful toolkit for decentralized applications. Configuring the Sepolia testnet onto the ConnectKit UI using Wagmi Chain Provider simplified the connection process. Alchemy and WalletConnect played crucial roles, enhancing the overall user experience during onboarding.

Blockchain Interaction: Ethers.js: Ethers.js served as the bridge between our frontend and smart contracts, enabling seamless interactions with the Ethereum blockchain. This powerful library facilitated the integration of our platform with the underlying decentralized infrastructure.

Testing: Hardhat and Ethereum Mainnet Fork: Ensuring the robustness of our smart contracts was paramount. Hardhat, a development environment for Ethereum, played a key role in testing both minor and major functionalities. Dynamic deployment of contracts and testing on Ethereum mainnet forks allowed us to simulate real-world scenarios and validate the reliability of our system.

Alternative Collateral: NFTs and Aave v3 Protocol Extension: We extended the capabilities of the Aave v3 protocol to support alternative forms of collateral, particularly NFTs in this instance. This innovative approach not only diversified the types of collateral but also opened up new possibilities for artists and lenders alike.

Loan Processing and Repayment Mechanism: For each loan request, a new smart contract is dynamically deployed. Lenders can lend DAI tokens to these contracts, supplying them to the Aave v3 pool on their behalf. We have also implemented Aave’s Credit Delegation. Lenders delegate their borrowing power to the contract, which, in turn, borrows GHO tokens and transfers them to the borrowers. This intricate yet streamlined process ensures transparency and security in the lending and repayment mechanism.

Benefit to Users: The use of ConnectKit and Wagmi Chain Provider streamlined the connectivity process, making it more user-friendly. The extension of the Aave v3 protocol to support NFTs not only diversified the use case for GHO tokens but also provided a novel solution to the challenges faced by artists in accessing financial support.

Our platform is beneficial to both parties as lenders can gain interest from aave protocol and it also diversify their portfolios by investing in promising artworks. Artists get much needed financial support . We have extended the aave v3 protocol to support alternative forms of collateral like NFT’ in this case. This platform also diversifies the use case of GHO Tokens.

In summary, our project is a symphony of technologies carefully orchestrated to redefine decentralized finance for artists. From smart contract development to user interface design, each component has been thoughtfully chosen to create a platform that empowers artists, supports lenders, and pioneers new possibilities at the intersection of finance and creativity.