Divvy Bank

Inspiration

We hear a lots of financial scam even in today's digital era. There are a number of loopholes that both the banker and the borrower that advantage of. So, me and my team decided to provide a solution to this problem and came up with Divvy Bank where we take out the "trust" factor and handed the job to a escrow smart contract.

What it does

Divvy provides both the bank and the borrower transparent systems. The borrower can request a loan to the bank mentioning loan amount and tenure and is needed to deposit a mortgage of same worth. Here comes the power of blockchain. Instead of taking hard copies of document papers, the borrower will upload a NFT of that property. The ownership of the NFT at first will be with the Escrow account. By using ChainLink Upkeepers, we have automated the repayment request process. In case the borrower is not able to repay the amount past 1 week after the due date, the ownership of the NFT is transferred to the bank. If the repayment is successful, the NFT is sent back to the borrower.

The bank also have a pool that holds Ethereum. Investors earn an interest amount every year for their share. This helps the bank provide loans. We again used Chainlink upkeepers for automating the interest payout system.

How we built it

We primarily used NextJs, Solidity, Openzepplin, Remix, Hardhat and Chainlink for this dApp. 1. We built a liquidity pool for the bank that accepts payments from investors. 2. Interest amount is calculated automatically using Chainlink Upkeepers and let the investor withdraw funds whenever required. 3. We built an escrow smart contract using solidity that hold the ownership of the NFT and automates the process of transferring it according to the loan status. 4. We used IPFS as our file system and ERC721 tokens as NFTs 5. Finally we used NextJs and React to make our frontend and UI.

Challenges we ran into

1. Lack of well-defined documentations and tutorials in case of Chainlink. 2. Building the escrow smart contract took a lot of brainstorming. 3. Testnets were working abnormally and took time to setup. 4. Breaking changes in Infura caused minor issues while uploading pictures to IPFS.

Accomplishments that we're proud of

1. The system of wealth tokenization was very interesting concept to implement. 2. We built an secured and transparent system that will reduce the number of financial scams. 3. We used Chainlink Upkeepers with limited resource and tutorials. 4. Used Openzepplin wizard for the first time in our web3 journey.

What we learned

1. We learned about the different concepts in the DeFi space like loans and escrow. 2. We learned to used Chainlink Upkeepers to automate functions. 3. We learned the best practices and smart contract security while testing it. 4. We kept in mind the gas fees and tried to reduce it as much as possible.

What's next for Divvy Bank

Divvy Bank can evolve and rise till the sky. Next on our checklist we have insurance plans that will be powered by ChainLink Oracles and Data Feeds. We will provide loans for crops, health, travel and collateral insurance.

We take pride in providing the best banking setup to our customers and help then with their finance problems.