Get Some Cred

The DeFi market within crypto is limited by the lack of uncollateralized loans, an aspect of Traditional finance that has helped it grow substantially. This project uses Aave to allow for users to deposit collateral and find a verified user to delegate credit power to. The interface allows for users to create a loan, search for loans, or lend to an existing one. The main format of the lending site was based upon a famous subreddit, r/borrow, which is an unofficial marketplace for under collateralized loans on the internet. The site works by people posting requests for a sum of money, a premium that they will pay on top of the borrowed cash, and a goal payment date. This model works as the subreddit had around $1.3 million lent last month. However, this site has a critical flaw, a vulnerability to sybil attacks, as one user can create multiple accounts. Within DeFi, this issue persists as a single individual can create multiple wallets. This is where the verification scheme is used to help prevent duplicates. An advantage of integrating this type of platform within crypto is the advantage regarding data privacy. The user’s data isn't saved, it is simply hashed and then stored on a chain. Therefore, that individual can’t use an existing ID to create another account, and no one else can determine their identity from the hash. Through this, the platform is able to offer under collateralized loans to anyone. The platform allows for any user to receive a loan, while also creating a trackable credit score that sticks with their account.

Frontend Github: https://github.com/LukeFost/aave_hackathon

The protocol uses the hardhat framework for deployment and testing development. The front end takes advantage of both Wagmi and Viem to customize the clients interactions on the chain. The main technology on the smart contract side is the creditDelegation and the private information storage system being used. The IDAnalyzer API was used to verify an individual's ID to ensure their uniqueness to prevent the creation of pseudo-anonymous accounts. The information was hashed by a relayer which posted the information to the blockchain. This entire process is seamless with the verification steps from IDAnalyzer, which helps to bring a smoother UX experience. A nextJS server was created to host this API and it was used to run the verification function from the validator address. The smart contracts also allow for users to deposit any type of token that Aave supports, which was enabled through an integration with the Aave V3 code. The front consists of Wagmi that accumulates all existing loans and lists their information. This helps a lender determine which borrowers to lend to, so that they can generate more income.