Inspiration
In recent times, we are seeing a wave of Buy Now Pay Later services provided by several banks . Along with that we have also seen the rise of Blockchain in Decentralized finance sector.
In these BNPL services, the users have to go through a long process of KYC and prove their credibility to the service provider. Thus the user has to be solely dependent on the bank to approve his/her loan for the next time. Otherwise the user has to go through the hassle of switching different apps to get micro-loans. This arises a greater problem of tracking the ongoing loans in several apps and process of repaying becomes difficult Also, in such services the interest rates are fixed by the bank, hence the user cannot browse through different interest rates which are suitable.
Moreover, for the service providers do not hold a collateral from the user hence, the only way to get back the loan is to wait for the borrower to repay back, which greatly affect the repayment rate for the banking institution
What it does
The platform provides borrowers to ask for a sum of money in Ethers providing, the date of repayment and providing a digital asset previously owned by the borrower as collateral
Lenders can browse through all the requests and make an offer providing the preferred interest rate, after verifying the collateral digital asset.
Borrowers can now browse through all offers and accept the suitable one. This provides the borrower to choose from several interest rates which switching apps.
After the loan repayment period is over, if the loan is repaid, the lender earns the principle with interest, otherwise the lender may choose to wait or claim the collateral in which the ownership of the asset is transferred by the platform itself
How we built it
With the help of HTML, CSS, web3js, Solidity. HTML and CSS were used to design the full frontend of the platform. Solidity was used to design the smart contracts and the load protocols. Web3JS was used to connect frontend with backend.
Challenges we ran into
One of the biggest challenges was the Lender contract which had some bugs which led to the creation of duplicate requests which was fixed to reduce gas fees, when the function was called from solidity the gas fees were too high so we tried to replicate the function in JS so that the gas fees could be reduced
Accomplishments that we're proud of
We have successfully created a full fledged decentralized web app for financial sector which can perform transactions with fast speeds and high security. This project will also educated people about the power of blockchain and will surely help them to live in a hassle free loan lend and borrow environment.
What we learned
Learned to connect smart Contracts with front end and work upon the basics of reactJS thereby establishing the connection with web3JS.
What's next for Micropay
Include rewarding system as tokens based on numbers of successful repayments which can be traded for digital assets or staking. Hence, this will create a revenue for the company as the value of the token increase.
Create a more secure and inbuilt KYC service which will store and will also be capable of creating a consortium of similar services so that users dont have to do KYC over and over again while opting for another service. The eKYC API will be provided to other companies as a subscription based service.
Make a crosschain Payment gateway for web3 marketplaces, hence converting MicroPay from just a Micro-lending platform to a web3 Payments Bank.
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