XOR is a decentralized credit protocol that allows for the creation of loan contracts that are low cost for borrowers, high return for lenders, and contain end-to-end transparency and immutability on the blockchain. We originally conceived the idea at ETHDenver in February, and since being in Buenos Aires, have expanded greatly on the application, making many improvements to the previous version.

What it does

XOR is a transparent, decentralized, and democratic credit protocol built on Ethereum allowing for the creation of fully modular and programmable credit markets. XOR uses smart contracts to model any type of loan. Many markets can be modeled as debt contracts thus enabling a universe of potential XOR markets with the aforementioned benefits over their current analogs. All market transactions are recorded on the blockchain to ensure end-to-end transparency. An additional benefit of XOR’s decentralized approach is the elimination of parasitic fees such as fees from third party credit ratings agencies, insurance providers, and centralized banks. Borrowers receive superior borrowing rates and lenders receive higher Return on Investment (ROI). Another important aspect of XOR is self governance and modularity. Actors in the system will be able to choose their own credit score implementations, insurance rates, risk models, and any other market variables. We can assume that any given model will not stay relevant for infinite time. XOR aims to rectify this by allowing democratized modularity in the creation and evolution of markets over time, since we can be sure that in the future at least one type of basic functioning model will exist. This flexibility is important in order to ensure that the XOR Protocol can adapt to future changes in market and real-life circumstances. In addition, the potential applications of the XOR Protocol are far-reaching, such as microloans in undeveloped nations and startup fundraising for example. XOR will open doors to fair loans and credit access to people across the world by providing an accessible platform through which anyone in the world can create a market or invest in markets in a way that is transparent, distributed, fair, and flexible.

How we built it

We wrote smart contracts using solidity, creating multiple contracts, and delegate proxy contracts that interface with DAI and WETH.

Using React, we created a simple UI where one can create, view, and join the debt obligation market either by offering or requesting a loan. The UI interfaces with smart contracts using web3.js

In addition, to demonstrate the modularity of XOR, we created two sample proxy contracts that can be called upon by a market to perform trust score calculation and interest calculation for that market. This delegating process need only be completed by having user input the address of the proxy contract.

Challenges we ran into

We attempted to integrate the single-colateral Dai framework, in order to allow lenders who wanted to remain exposed to the upward price action of ETH to open a CDP while offering Dai-denominated stable loans to borrowers. However, we were having many problems with the deployment of our smart contracts while attempting to do it this way.

Accomplishments that we're proud of

We are proud of the way that, after only meeting late Friday night, 36 hours later we were all able to work together, although on many time constraints and with very few hours of sleep in our systems, and still manage to produce a product that we are proud of. Hackathons are always a big learning experience for everyone, so I am extremely grateful for the opportunity to have met two brilliant young Blockchain Developers, who are going to (and have already, might I add!) make monumental changes in this space.

What we learned

Test earlier(!)

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