HoneyLemon

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Inspiration

In these recent years, the economy has been under turmoil, resulting in rapid changes on commodity prices. Trouble in the commodity market greatly affects food security and thus creating a domino effect to the prices of other products.

We aim to provide solution that solves the problem from the root. Our solution is to provide futures marketplace for agriculture commodities where the middle-man(banks, insurer, and government) are not involved, thus nearly 100% of profit goes straight to the farmers.

Desired effect on food security

On standard practice, farmers take loans from banks or government to secure their harvest production. Therefore, upon failing to achieve great results on harvest season, farmers are greatly risked to be out of business due to the amount of loan interest while earning virtually no profits.

By trading futures on peer-to-peer basis, farmers can secure funds for harvest without having to take a loan. Therefore, lowering the risk for farmers to go out of business after bad harvest. As a positive side effect, commodity prices will be less expensive from time to time due to better harvest output security.

How we built it

We gather live data from commodities-api to get accurate price of a commodity at given date. The price is then stored in the smart contract as a BASEPRICE via Chainlink API which a standard futures dynamic pricing formula will make use of.

Futures Price = BASEPRICE * [1+ rf*(x/365)]

We provided a basic frontend for proof of concept purpose using svelte and etherjs library. Through etherjs, we connect the frontend to Metamask and connect to the respective RPCs. Essentially, the Dapp doesn't require any subscriptions to node service providers.

Challenges we ran into and what we learned

Building the frontend took a lot of time. Nowadays, there are web3 services that eases development by providing ready to use UI & Components. However, for this hackathon, we wanted to test ourselves to build a dapp completely decentralized and not bound to any service subscriptions just because it is fun and it's what web3 is all about!