Inner Circles

Problem Statement

A decentralized loan protocol built on top ofC, designed to provide fair access to credit for community members based onsocial trust, not assets.Live Pilot:FFrutero.Club is a talent accelerator for LatAm builders, where members build reputation through contributions to real-world projects. We’re piloting this protocol in Mexico to offercommunity-backed liquidity for builders and operatorsin need of short-term financial support.How It WorksMember applies for a loanin CRC from the Circles Group treasury.Vouching phase: At least 3 trusted community members vouch via Telegram bot, each depositing a fixed amount of CRC into escrow.Dynamic interest rateis calculated based on number of vouchers:<3 vouchers: ineligible3: 5%10: 1%>15: 0%Additional lenderscan contribute until escrow is filled.Funds are disbursedto the borrower. Repayment cycle begins (default: 30 days).At maturity,Telegram bot checks wallet balanceand attempts automated repayment.If loan is repaid:Lenders are paid back (in priority)Trust score improvesIf unpaid:Grace period is triggeredOn failure, borrower'sENS tag is revokedTelegram alerts group to adjust trust graphFuture loan access becomes harder (higher quorum required)

Solution

Tech stack:Smart Contract InnerCirclesLendingMarket.sol implements the loan lifecycle: vouching (min 3 vouchers, 1 CRC each), dynamic interest rates (5% → 0% based on voucher count), prioritized repayment (external lenders first), and default handling with off-chain ENS suspension events. Telegram Service Read-only notification bot using Telegraf.js. Sends notifications for loan events but doesn't handle Telegram reactions for vouching yet.Circles Integration Circles SDK integrated with custom browser runner Missing: Personal CRC (ERC1155) → Group CRC (ERC20) wrapping/minting Current limitation: Contract uses mock ERC20 token; production requires group token minting from personal CRCArchitecture Frontend: Next.js 15 + Wagmi v3 with event-driven loan creation Backend: Telegram notifications + member storage Smart contract: Complete on-chain loan lifecycle Gap: CRC token wrapping pipeline (documented in Epic 0, not yet implemented)