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Customer Profile
Our client needed a DeFi lending and borrowing platform for financing working capital to farmers and commodity traders using collaterals.
Problem Statement
Today, the process of financing working capital is unorganized. Moreover, farmers have to depend heavily on money lenders and the interest rates are also very high. Also, the money lender as well as the borrower are vulnerable to fraudulent practices like unauthentic documentation, loan flipping, improper credit assessment, etc.
Result
Biz4Solutions helped the client to develop a Blockchain-based solution for providing finances to farmers and traders. Users have to first deposit their real-world assets in warehouses, obtain a receipt for the same, and then can mint NFTs of the receipt for lending and borrowing.
Overview
Biz4Solutions developed a collateral-based lending and borrowing platform that will finance working capital for farmers and commodity traders. Farmers and traders deposit their real-world assets in warehouses in the form of farm produce or other goods. Users receive a receipt against the commodity stock deposited in warehouses. Users can tokenize this receipt on the DeFi platform by minting NFTs based on the value of their collaterals. Capital can be borrowed against these NFTs. Users can also deposit their Crypto Assets on the platform and earn some interest. All transactions related to depositing, lending & borrowing can be executed and tracked by users themselves without involving any intermediaries. Users have to pay a very small amount of platform fees in USDT. Users need to install the Meta mask extension and create an account on Meta mask. Users can then click on the ‘Connect Wallet’ button to connect the meta mask with the applications.
Developmental Challenges
- Our team faced developmental challenges while developing gas-efficient smart contracts.
Result
We resolved this challenge by minimizing the reading and writing of on-chain data. Reading and writing in memory is more cost-efficient than saving the data in storage. We executed events/logs (results of LOG opcodes) in the EVM. Events are a part of “internal transactions” which are derived by executing transaction data through the EVM. We also avoided loops for dynamic values. We carried out the process of “Variable packing” – combining variables.
Benefits
- Auto-execution of transactions like loan approval, loan transfer, etc. based on pre-defined conditions.
- Farmers and producer businesses can monetize their assets in a secure way.
- Farmers get credit scores.
- Any modifications made to the platform need the approval of multiple admins, at least 3/5 admins.
If you are interested in knowing more about our success stories with decentralized finance platforms or looking for a similar kind of solution, then hit the button below to share the scope and requirements of your project.