Aura

Our project tackles the liquidity issues of diamond real-world assets by fractionalizing high-value diamonds into tradable tokens. Borrowers can secure loans by using these diamond fractions as collateral, while lenders receive fixed-income loan notes—similar to bonds—whose market price fluctuates with changes in interest rate spreads. To enhance efficiency and reduce gas costs, our system integrates off-chain permit functionalities for ERC20, ERC721, and ERC1155 tokens, allowing seamless authorization without multiple on-chain approval transactions. Furthermore, in order to meet legal and regulatory requirements for Real-World Assets (RWA), we utilize Self Protocol to verify borrower nationality. The entire protocol is built using upgradeable smart contract architecture, enabling future enhancements without disrupting the current system.

The platform enables the fractionalization of diamond assets. Borrowers deposit their diamond fragments as collateral to secure loans, and lenders are issued fixed-income loan notes that resemble traditional bonds. These notes are designed to reflect a yield spread—the difference between their fixed returns and current market interest rates—causing their market price to fluctuate accordingly. To streamline on-chain operations and reduce gas costs, off-chain permit functionality is integrated for ERC20, ERC721, and ERC1155 tokens, enabling users to authorize transactions via digital signatures. Additionally, Self Protocol is employed to verify borrower nationality, ensuring regulatory compliance for real-world assets. The contract architecture is designed for future upgrades, allowing seamless enhancements without disrupting the ongoing operations. A user-friendly web interface facilitates real-time interactions with the blockchain, providing transparency and efficiency throughout the lending process. Currently, our project is deployed on the hashkey testnet and Polygon Amoy.