Kashidashi Finance

Inspiration

The inspiration for Kashidashi Finance stemmed from the glaring gap in the DeFi lending market - the prevalence of overcollateralized loans. We observed how this model significantly limited access to credit for many potential borrowers who lacked sufficient collateral. Inspired by the more inclusive and flexible lending practices of traditional finance (TradFi), we set out to create a DeFi protocol that facilitates undercollateralized lending, thereby democratizing access to credit in the decentralized space. For mechanics used in Kashidashi we have taken inspiration from existing Credit protocols such as Maple & Goldfinch with the goal of improving some key mechanics in these protocols to develop a more scalable protocol.

What it does

Kashidashi is a DeFi protocol that revolutionizes the lending and borrowing landscape. It allows for undercollateralized loans, breaking away from the traditional DeFi model of overcollateralization. Borrowers can propose loan terms directly to backers, while backers, incentivized through a revenue-sharing model, endorse loans by locking in tokens. The protocol also features a secondary market for trading rights to future cash flows from these loans, adding liquidity and flexibility to the DeFi credit market.

How we built it

Kashidashi was built using a combination of smart contracts and blockchain technology. We leveraged brownie for smart contract development & creation of our test suite. Additionally we used common Open Zeppelin libraries such as the ERC721 standard for the tokenization of loans, facilitating the creation of our secondary market. The protocol's modular design was meticulously developed to allow third-party intermediaries to set custom rules for loan approvals.

Challenges we ran into

One of the main challenges we faced was ensuring the protocol's security, especially against smart contract vulnerabilities. In order to ensure our MVP contracts are safe we developed a test suite to run various scenarios and ensure our smart contracts operate as intended under various scenarios.

Accomplishments that we're proud of

We are immensely proud of developing a working prototype for our smart contracts that not only meets the technical requirements of undercollateralized lending but also addresses the real-world need for more inclusive financial services in DeFi. Successfully creating a secondary market where loan rights can be traded was another significant accomplishment, adding a new dimension to DeFi lending.

What we learned

Throughout the journey of building Kashidashi, we learned about the intricacies of smart contract development, the importance of user-centric design in DeFi, and the complexities involved in balancing innovation with regulatory compliance. This project also deepened our understanding of the DeFi lending ecosystem and the challenges of introducing undercollateralized loans in a predominantly overcollateralized environment.

What's next for Kashidashi Finance

Looking ahead, Kashidashi Finance plans to launch in Q1 2024 following additional security reviews & further development of our test suite. Additionally we plan to expand our base offerings by integrating features like automated savings accounts for lenders, securitization of debt, and the development of lending modules for backers to automate their lending facilities. We aim to continue evolving and adapting our protocol to meet the changing needs of the DeFi community and establish Kashidashi as a leading platform in decentralized lending.

Built With

• brownie
• solidity