CrossLend

CrossLend - A Cross-Chain Lending Platform

CrossLend will be a decentralized lending platform that allows users to use their Bitcoin as collateral to borrow stablecoins or other cryptocurrencies on various chains, all managed through a single NEAR account. This platform will demonstrate chain abstraction, utilize Chain Signatures, and provide a seamless user experience across multiple blockchains.

Key Features:

1. Bitcoin Collateralization: Users can lock their Bitcoin as collateral without moving it off the Bitcoin network.

2. Multi-Chain Borrowing: Borrow stablecoins or other cryptocurrencies on various chains (e.g., NEAR, Ethereum, Solana) against BTC collateral.

3. Single Account Management: All operations are managed through a single NEAR account, abstracting the complexity of interacting with multiple chains.

4. Dynamic Loan-to-Value (LTV) Ratios: Implement smart LTV ratios based on real-time market data and cross-chain oracle feeds.

5. Automated Liquidation Protection: Use Chain Signatures to automatically adjust collateral or repay loans on other chains to prevent liquidation.

6. Cross-Chain Yield Farming: Allow borrowed assets to be automatically deployed in yield farming strategies on various chains for additional returns.

Implementation Outline:

1. Smart Contracts:

   • Deploy main lending logic on NEAR
   • Deploy helper contracts on other supported chains (Ethereum, Solana, etc.)

2. Frontend:

   • Create a user-friendly web interface for managing loans and collateral
   • Implement wallet connection for NEAR (and abstract other chain interactions)

3. Backend:

   • Develop a service to monitor Bitcoin addresses and validate collateral
   • Implement cross-chain oracles for price feeds and LTV calculations

4. Chain Signatures Integration:

   • Use Chain Signatures to sign and execute transactions on Bitcoin and other chains
   • Implement secure key management and derivation for cross-chain operations

5. User Flow: a. Connect NEAR wallet b. Deposit BTC to a generated address (verified using Chain Signatures) c. Select borrowing options (amount, asset, chain) d. Confirm transaction (signed using NEAR account) e. Receive borrowed assets on the selected chain

6. Security Measures:

   • Implement multi-sig for critical operations
   • Use secure enclaves for key management
   • Regular security audits and bug bounty program

This project addresses the key requirements of the bounty:

1. Interoperability: It connects NEAR, Bitcoin, and other blockchains in a DeFi use case.
2. User Experience: Users manage everything through a single NEAR account, abstracting the complexity of multiple chains.
3. Security: Utilizes Chain Signatures for secure cross-chain transactions and implements robust security measures.
4. Innovation: Leverages NEAR's technology to create a novel lending platform that unlocks Bitcoin liquidity across multiple chains.

Built With

• bitcoin-defi
• calimero
• near-chain-abstraction