Karaage

Karaage is a cross-chain decentralized lending protocol that allows users to lock collateral on one blockchain and borrow assets on Hedera . The validity of collateral on the different chain is verified using zk proofs.

Imagine locking your ETH on Ethereum L1 and borrowing hUSDC on Hedera. Karaage makes that possible through cross-chain messaging and cryptographic verification. The goal is to create a seamless, trust-minimized, and capital-efficient lending experience across multiple chains.

The project is a cross-chain lending protocol that enables users to lock collateral on one blockchain and borrow assets on Hedera, leveraging secure interoperability and zero-knowledge verification. It is developed using Solidity and the Foundry framework, ensuring modular and testable smart contract design. The core contracts include CollateralVault.sol, which manages collateral deposits and withdrawals on the source chain; KaraageLendingPool.sol, deployed on Hedera, which handles borrowing, repayments, and overall loan logic; and Oracle.sol, which integrates Chainlink price feeds to provide real-time asset valuations for determining borrowing limits. Cross-chain communication is powered by LayerZero, which securely transmits verified messages between chains whenever collateral is locked, borrowed against, or repaid. To enhance trust and privacy, the protocol uses zero-knowledge circuits written in Noir to verify collateral validity and cross-chain conditions without revealing sensitive user information. Together, these technologies create a minimal yet powerful foundation for a decentralized, multi-chain lending system that prioritizes security, verifiability, and scalability.