The use of blockchain technology in the financial sector has improved its decentralization and given rise to a new industry known as DeFi. Decentralized and peer-to-peer networks for financial banking and lending as well as cutting-edge financial instruments are now increasingly prevalent as a result of DeFi.
Despite these ecosystems' noteworthy success, DeFi is still a young technology. Despite its many advantages, there are still things that prevent DeFi from becoming more widely used. Several problems with the current DeFi standards include:
- Minimal liquidity
- Borrowers' loan concerns The fact that lenders are free to withdraw their investments anytime they like might lead to the aforementioned issues in any market at any moment. It won't be effective to implement a required locking period within the lending pool itself because many lenders might be reluctant to do so.
What it does
The lenders will be locking up their mTokens(implemented in the website) for a certain period of time ensuring that they cannot withdraw the equivalent deposits, thus not only ensuring greater liquidity in the pool but also increasing the TVL, benefitting both the lenders and the borrowers.
How I built it
For the UI I used Figma. For the frontend part, I used reactjs and material-ui. The backend was built using chainlink, polygon, and solidity.
Challenges I ran into
Implementing the entire project within the given time constraints was a major challenge that I faced. Also, research on existing protocols further reduced the implementation period. Using decentralized oracles was something new for me. Also went through the tools that polygon and chainlink provide. Overall, it was an amazing experience.
Accomplishments that I am proud of
The functionality of the app and its design.
What I learned
I learned a lot of things related to chainlink and web3. This project really improved my web3 skills.