LoanDAO

Inspiration

Startups are hard and having people in your corner who believe in you can make all the difference. But sometimes, it's easier to leverage what you have! Having digital assets such as Stacks or Bitcoin, soon sBTC, will be huge since it can be used as collateral for loans. This spawned the idea of LoanDAO.

What it does

LoanDAO is a Clarity smart contract that allows Decentralized Autonomous Organizations (DAOs) to provide loans to startups that must be repaid in Stacks or Bitcoin (which can be sBTC when live) every 30 days. LoanDAO is an open source glimpse of what is possible with Stacks as we believe that it can be used to power decentralized loans in the future.

LoanDAO allows for the following:

• The startup can set collateral that will be held until the loan is fully repaid by sending a transaction to the contract.

• The startup can initiate a loan by sending a transaction with the requested loan amount, interest rate, and repayment period.

• DAO members can approve the loan by sending a transaction with a pre-specified approval amount, which is added to the total approved amount of the loan.

• The startup can withdraw the loan once it has been fully approved by sending a transaction for the full amount approved.

• The startup can repay the loan every 30 days by sending a transaction containing the specified repayment amount and either Stacks or Bitcoin.

• Once the loan has been fully repaid, the collateral will be returned to the startup.

• DAO members can withdraw their share of the DAO's interest earned over the life of the loan by sending a transaction to the contract.

• The smart contract includes functions for managing DAO membership, such as adding and removing members and calculating the DAO's total interest earned.

How we built it

The Clarity smart contract was cultivated in the Clarity VS Code Extension via Visual Studio Code.

Challenges we ran into

Like a two way marketplace, building for two types of users can be complex.

Accomplishments that we're proud of

Passing check checker :-)

What we learned

Loans can be complicated but when we leverage decentralized outputs, things can be transparent and streamlined where all parties come out on top.

What's next for LoanDAO

The future is bright for NoCodeClarity as we launch our first product in May 2023. LoanDAO was a fun exercise and we hope the community enjoys it. That's why it's open source! The thesis of NoCodeClarity as a startup is to leverage NoCode in a way where it does for development what Bitcoin did for finance, democratize it.

Built With

• clarity