This project is inspired by the swedish JAK bank. It has been offering interest-free savings, loans, and banking services since 1965, with the aim of enabling an interest-free economy. More than 38,000 members of the cooperative bank save with interest-free savings accounts and can thus borrow money from the general fund for the cost of the administration fees only.
What it does
Sakin’s objective is to provide its members with interest-free loans. In order to accomplish this, it must attract interest-free savings. Sakin will use a system of “savings points” in order to balance savings and borrowings. The savings points will be the tokenized assets that can be exchanged between members and help secure loans. The loans and deposits will be transacted through hbar.
For a new Sakin member, the first step towards an interest-free loan is to save and thereby earn savings points. Saving €1 for one month would earn 1 savings point. After saving for a minimum of six months, a member may apply for a loan. In order to borrow €1 for one month, 1 saving point must be redeemed. The amount borrowed and the time taken to repay are entirely up to the member, provided that the appropriate savings points are available. For example, borrowing €10,000 over 1 year uses as many savings points as borrowing €5,000 with repayments spread over 2 years.
How we built it
Hedera Token Service: The application tokenizes the Savings Points which can be shared amongst Sakin Members. The Savings Points are swappable for credit by anyone who holds them. We refer to these as tokenized rights. Anyone who holds the SSP token is eligible for credit consideration.
Google Cloud: The Sakin Application runs on the Google Cloud Platform. It is a Java application built on the Spring Framework. On GCP, it runs on an app engine. It utilizes a sql database for data persistence. The App Engine is suitable for this application as it is already pre-configured to handle load and traffic efficiently without much Developer effort, thus giving developers the time to focus on what matters
UI: Sakin Bank is currently a web-based application. The User Interface is handled by the Thymeleaf engine. Users can create accounts, make deposits, load crypto into their Sakin wallet, share their earned SSP amongst themselves, borrow loans and repay them all within the same application.
Challenges we ran into
Time definitely :)
We faced a technical issue on one of our machine. It’s being repaired and we will release a demo of the application as soon as we fix the problem and finish the UI. (Hopefully within the week of 15th February)
Accomplishments that we're proud of
Sakin is certainly motivated by social benefits. For this reason, it has developed the “support loan system” whereby members can use their savings points to support another project. Members can move savings points into a support account thanks to tokenization. When savings points in the account match the project’s loan request the loan is granted (providing there is the ability to repay, but no security is required) and can be repaid, interest-free, without the need for the project to make any savings. This allows the project to have an interest-free loan and for the members, it is an innovative way of helping organizations without the personal risk of investing in it directly. This initiative aims to help local, ethical and environmental projects (associations, foundations, startups...). It also allows members in need of a loan to request savings points from other members. Members are willing to donate their points to help others get a loan (family, friends, needy, refugees...).
What we learned
We learned how easy it is to build on HTS and integrating Google cloud as a back-end perspective.
What's next for Sakin
Apply to the Hedera boost program and continue development. Hopefully, launch in early Q2 as a pilot. Start partnering with associations and foundations to encourage them to stake hbars to reward social good initiatives with savings points. We will start with foundations within the Hedera’s governing council, if it’s possible. We will then apply to the helix accelerator to scale the project and offer the service to people within the Hedera community, like a fully crypto banking service.