Last month I attended the ETHDenver hackathon and met the guys from the Dharma project. They are building a lending protocol which enables to issue and administer loans, CDOs, bonds and short sell/margin trading tokens on decentralized exchanges. Having investment banking background and experience in structuring debt instruments, I quickly learnt that the protocol addresses all major pillars of lending ranging from KYC (or lack thereof) to structuring and servicing debt. Yet, the protocol is very flexible and does allow to build numerous lending applications on top of it, ranging from microfinancing and financial inclusion to structured institutional borrowings.
We built a platform (Relayer) for hosting off-chain debt order book and on-chain debt order settlement. The platform allows lenders remain custody of their tokens (no need to deposit tokens with the platform to place orders) and transfer tokens only when a lender chooses to fund a particular loan. Once loan is funded, the lender gets issued ERC-721 token (non-fungible) -- right to collect principal and interest.
Used Dharma.js library and examples of contracts developed by the Dharma team.
The challenge was that we had front end developer only for 10 hours to work on this project ;)
We will be continuing development of the platform to launch it once Dharma protocol goes live on the Ethereum main net. Very excited to run first ever real transaction through the Carrot Platform on Dharma protocol.