Lenft: property-backed loans
Permissionless peer-to-peer loans directly between owners of property represented as NFTs and a world-scale pool of liquidity providers (individuals, institutions, investors, bots...).
Project Description
NFTs are on the cusp of breaking out of being mostly profile pictures and coming to represent all types of property. RWAs will lead the charge. But how to tap into the value of your property while keeping ownership at the same time? Enter permissionless peer-to-peer loans directly between NFT owners and a world-scale pool of liquidity providers (individuals, institutions, investors, bots...).
For borrowers: a portion of value of previously illiquid and idle assets is unlocked and can be used. Borrower can freely choose and only accept terms if they favourable to them. Now they don't have to sell and lose a very expensive asset just to spend a relatively small part of its value. Moreover, being in stablecoins, their loans are non-volatile and predictable.
For lenders: the choice of building the loan offers from scratch gives them the opportunity to tailor exactly to their risk appetite. Now instead of sitting on idle dollars or choosing yes/no between prebuilt investment profiles, they can fine-tune their portfolio.
Links
How it's Made
The XDC blockchain was new to us so we've had several minor issues. We ran into a snag with Metamask, where a key error popped up without any clear patterns. It made it tough for us to spot and fix the issues. On another note, we also dealt with some hiccups from RPC endpoints acting a bit wonky now and then. This wasn't entirely unexpected, given the testnet limitations.
On another note, the smart contract had to be admin-less and ownerless, which needed careful design so that the protocol is neutral and one of the parties is not advantaged.
