HonorLoans

HONOR LOANS is an experiment where currency issuance is backed by honourability of the members in a network of trust

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Inspiration

The main inspiration for this project is our beloved Herbert Spencer(1820–1903) who became so anarchist that he proposed to the United Kingdom government that everyone mint their own currency. 200 years later we are ready to fulfill this vision.

Let's say Bob needs to borrow 200usd, but he doesn’t want to ask for a credit in a bank. Maybe a friend (or someone in his network of trust) can lend him that money without paying for interest. So, his friend Alice , lends him the 200 bucks as he promises her to give it back in 90 days.

With honorLoans Bob mints a new token called Bobcoin, for the amount of the loan and gives it to Alice. That's cool for three reasons: 1- they both have a remainder (in the form of an NFT) for the amount of the loan and the conditions they agreed for, a very useful thing to have as our memory is not flawless. 2- if she wishes, Alice can use bobcoins at Bob’s store. 3- Bob can accept other participant’s coins to progressively pay for this loan.

What it does

As Bob progressively pays his debt during this cycle, Bobcoins now become Alicecoins. Having liquidity, this newly minted Alicecoins, can be directly used as a form of payment between other honorLoans’s network of trust participants.

The balance is dynamically reflected in each respective NFT wallet that each participant holds

At the end of the cycle, if Bob didn't pay for the loan, he loses his honorability, being banned to create new loans and being banned from the network until he restores his honor.

How we built it

So Bob created this honorLoan token and he managed to pay it back before time. Now Alice can withdraw the funds, but also, she can let those funds staked, and use her coins inside this network.

As the network grows in confidence between the community, other members may want to participate and join the network. To allow this to happen, new participants can directly deposit their stake to create honorloan coins, profit from the benefits of this experiment and nurture the community.

Challenges we ran into

Besides time being always a defying constraint, moreover when so much new amazing tech is on the rise, and the early state of several technologies, and its instability (subnets!), the main and more annoying challenge was TO GET FAUCET TOKENS!!!

Accomplishments that we're proud of

We created CHAT WALLET. A wallet designed to make peer to peer transactions more easy. You can use this wallet to chat and have a direct conversation with your peer. Also, you can transfer honorLoan coins inside this network of trust. Third: Imagine you run out of gas to pay for a transaction. With this wallet you can ask your peer to pay for the gas for you in order to send him some tokens.

What we learned

  • Avalanche’s Chainlink CCIP tx confirmations (as origin network ) are faster than in other networks.
  • Subnet development!
  • How to implement lots of chainlink’s amazing technologies (data feeds, automation, Functions, CCIP…)

What's next for Honour Loans

  • Launch it on mainnets
  • Use teleport for our subnet
  • sand and polish

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