It's usually difficult to write about inspiration, right?

This is not the case. It's impossible not to be inspired by even the slightest possibility of improving people's lives.

Think with me, due to linguistic differences, I might not even be able to pronounce your name correctly. But I can help change your life for the better. Do you understand the significance of that?

We know it's not that simple, we will need to dedicate many more days to study, testing, and development for this to be possible. But it's right there, within reach.

Continue reading... you will understand what I'm saying.

What it does

Horizon is a DEFI protocol aimed at simplifying access to the Web3 ecosystem through financial inclusion, especially for people with middle to low income, making the process safer, more transparent, and auditable. But how do we do that?

By Consórcio Quotas!

But what are Consórcio Quotas? What is a Consórcio? In simple terms, Consórcio are financial tools for collective self-financing. Got it? Don't worry, let's simplify this and apply it to the Hackathon we are participating in.

Let's assume that you and your team have created a super protocol, regardless of what it is. But for this protocol to be realized, you need money. We understand that.

And then you discover Horizon.

Through Horizon, you find thousands of other people who, like you, wish to realize dreams, give a boost to their enterprise, or acquire movable/immovable assets. Together with these people, you acquire a Consórcio Quota corresponding to the amount you need for your project to take off.

Every month you pay a portion of this total until one beautiful day you are selected. You meet with your partners and decide to allocate a guarantee and withdraw the amount to boost your protocol.

Remember the monthly installment I mentioned? It doesn't change. There are no interest rates for the credit.

You will pay the same amount until the end. Even after having withdrawn your investment and boosted your business.

Now stop and think. Would this change your life? Don't think small, this is the time to think outside the box.

For us, it doesn't matter how you will use the money, what matters is that you achieve your goal.

The short answer to this topic would be: This protocol changes lives!

How we built it

Our project is about people, dreams, and unity. That's why it was born here, at a Chainlink Hackathon.

We were looking for a fair, safe, and transparent way to 'select dreams.' Chainlink provided us with that through VRF.

We were looking for a way to unite diverse peoples, to bring opportunity to everyone. Chainlink provided us with that through CCIP.

We were looking for a way to diversify the means for credit release, without losing the security of the blockchain. Chainlink offered us that with Functions.

We were looking for an efficient and practical way to protect the assets of our clients and the interests of Horizon. Chainlink provided us with that through Automation.

Yes, we have and will have applications for many other tools, after all, Chainlink has created much more than we can keep up with.

But that's how we created it, from the effort of many people over the years. Our project took shape in this hackathon, but a piece of it is thanks to Patrick Collins, who introduced us to VRF and Automation.

Another piece is thanks to Sol Gueiros, who taught us about CCIP.

To the person responsible for the Chainlink Portuguese profile on X, who posted several threads that answered our questions.

And, the most recent, but not least, is thanks to Zubin Pratap who, through the masterclass, helped us understand Functions!

From this foundation, we dedicated our time to assembling these pieces for the protocol to take shape and make it user-friendly.

Challenges we ran into

The first challenge we faced was the decision to participate in the Hackathon.

This was our first hackathon, and the uncertainty was huge. Proof of this is that we preferred to work in pairs, as we didn't want to negatively impact others if things didn't go as planned.

The biggest challenge, due to its impact on the outcome, is conveying what a Consórcio is.

Since it's a Brazilian invention and only a few other emerging/underdeveloped countries have started to use it, this leads us to another challenge:

  • How do we make this type of investment appealing even to citizens of developed countries?
  • What would motivate these people to invest with us? Regarding the development of the project, it was a challenge from start to finish.

We have only 6 months of study/development in Solidity, our knowledge of JavaScript is basic, and we had never developed a dApp before. Moreover, it was our first contact with Chainlink Functions. There were several moments when we questioned our ability.

Accomplishments that we're proud of

First and foremost, I am proud that we accepted the challenge. The learning experience was tremendous.

Although Consórcios are a common financial asset in Brazil, it was through this project that we discovered that Consórcio is a Brazilian invention.

And that's wonderful!

It demonstrates the creativity potential our people have to find ways to achieve their goals.

What we learned

Oh, we learned a lot!

We learned that we need to believe in ourselves more. We learned that there's always room to deliver more, to improve, to do more.

A barrier is only a limitation as long as we accept it.

And in the day-to-day development, we learned that financial assets can be a tool for inclusion. Much more than generating income, they can realize dreams.

But in the end, the outcome depends on us. Whether we're alone in our daily lives or a group, together with people from all classes, places, and ages, we're looking for an alternative to achieve our goals.

What's next for Horizon

Given the structure presented, the protocol has vast potential for growth and evolution. Among the points that have been discussed, we have:

1 - Optimization of Phase 1. Given the billion-dollar market for investments of this nature, we need to reinforce our structure. This involves restructuring smart contracts for real environments, conducting audits, and redesigning UI and UX. Additionally, economic studies and local market analyses are crucial to gauge the challenges of expansion.

Measures such as developing classifications for accepted guarantees can reduce the final costs of the Consórcio. Therefore, cost management, adjustments of fees and penalties, processing of guarantees, more comprehensive studies, and targeted research can create new strategic advantages, always aiming for a better experience and greater opportunities for the end user. It is important to emphasize that beyond internal focus, we are aware that to expand our target audience we will also face legal challenges.

2 - Creation of a Secondary Market for the Commercialization of Consórcio Quotas With the creation of the Secondary Market, quota holders will have the freedom to trade them. This could involve reducing the quota price for a quick sale in case of need or even marking up the sale of a quota that has been drawn. From this, the protocol benefits from increased liquidity, as the market will be able to dynamically price the Quotas based on supply and demand, making the process fairer and more transparent.

Moreover, it opens a door for clients to diversify their investment portfolio, reduces delinquency, facilitates access for new participants, and stimulates participation since, despite having committed, a participant can transfer their Quota if necessary.

Finally, the introduction of a secondary market can lead to additional innovations and the growth of the Horizon ecosystem, attracting more users and investors and enhancing the robustness and resilience of the system.

3 - Encouragement of Partnerships for the Creation of New Pools for Yield on Locked Values Developing new partnerships can bring numerous strategic and operational benefits, expanding the reach of the Protocol. Among these, we have:

  • Access to new markets through other DeFi protocols or traditional finance significantly increases the number of users;
  • Expansion of Resources and Diversification of Investments, tailoring to regional supply and demand;
  • Long-term sustainability by providing stability and continuous innovation.

4 - Loan Services Using Tokenized Assets as Collateral

  • Expands Horizon's scope to countries with lower interest rates where, initially, consórcio would not be a viable option;
  • Facilitates access to short-term liquidity using Tokenized Assets;
  • Lower interest rates due to the allocated collateral;
  • Efficiency in the process;
  • Generates liquidity for the Tokenized Asset market;
  • Growth of the protocol as more assets are tokenized around the world.

Chainlink Data Streams would be a crucial tool for the proper functioning of the protocol, as well as for monitoring Tokenized Assets.

5 - Financing Using Tokenized Assets as Collateral

  • Easy and quick access to capital, especially for entrepreneurs;
  • Access to financing for large purchases such as real estate, furniture, and general equipment.
  • Due to the guaranteed nature, we can offer favorable financing conditions such as lower interest rates and flexible repayment terms according to the need.

All the potential scenarios presented converge to efficient and transparent processes through the employed technology and generate financial inclusion for individuals and businesses that lack access to loans from traditional institutions but have assets and need to create value from them.

In summary, the initial product and its possible developments are not only useful for investors but also for people who, in times of need, can meet specific demands such as health issues by acquiring loans and financing quickly and conveniently using their assets as collateral.

Built With

  • api-fipe
  • avalanche
  • chainlink-automate
  • chainlink-ccip
  • chainlink-functions
  • chainlink-vrf
  • hardhat
  • nextjs
  • polygon
  • react
  • solidity
  • thirdweb
  • vercel
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