There are a lot of obstacles when receiving personal loans in today's market place. Payday loans, allows lenders to borrow for a short amount of time, often at a very high exchange rate. These loans create a cyclical cycle of debt for it's users; usually unable to get out of. Loans build up on top of each other as you have to take out loans in order to pay for future debt obligations. These interests rate can be as high as 120% APR.
What it does
We provide a simple interface for users to use BloomID as a single sign on solution to verify their identity and obtain a no-interest collateralized loan with a very small origination fee. Facilitating with the blockchain means that we can use the immutability and the trustless system that provides the abstraction away from crypto. We provide a blockchain-based lending solution using Collateralized DAI which there are no time bounds for a user to pay back their debt obligations. From origination of the loan to the injection of capital, crypto is fully abstracted within our end to end solution with the end result being USD, or their local currency, deposited into the user's bank account. The UI is completely optimized for simplicity and time-saving without the user ever knowing they are using a Dapp. This will provide the easiest path for adoption of cryptocurrency-backed loans for the next million users.
How We built it
The onboarding and user verification is done through BloomID for Login, which will ask for basic information. This information is passed to MakerDao CDP, Wyre and other loan partners as the on/offramping for users. They are met with a relatively easy-to-understand workflow to be able to use and extract DAI.
Challenges I ran into
Bloom API kit is still very early-stage and the problem that we are trying to tackle takes much longer than 36 hours; however, we worked closely with Bloom providing Pull Requests to their documentation. The documentation for many of the 3rd party APIs are early stage and still have room to improve. https://github.com/hellobloom/share-kit/pull/13
Accomplishments that I'm proud of
Within 36-hours we were able to create an E2E lending platform incorporating 3+ technologies that completely abstract crypto, but still use the blockchain.
What I learned
We learned how MakerDAO CDP works, interacting with bloom, offramping with wyre, and quickly iterating on new technologies.
What's next for Lending Party
Deploying on the main net, micropayments to reduce debt obligations, crowdfunded loans and developing seperate interfaces for debtors and creditors. We also want to contribute to the Bloom and Maker ecosphere and continue to develop on their platform to integrate risk analysis with their new credit reporting.