InvoFi

Problem Statement

Traditional invoice financing is slow, expensive, and requires intermediaries. Small suppliers often wait 30-90 days to get paid, creating cash flow problems. Our dApp creates a decentralized marketplace where suppliers can get instant liquidity by tokenizing their invoices.🏭 Step 1: Supplier Creates Invoice Token Upload Invoice: Supplier connects their wallet and uploads invoice details (amount, buyer info, due date) Smart Verification: Chainlink Functions automatically verifies the invoice through ERP systems Token Creation: Protocol mints PYUSD tokens representing the invoice value (1 token = $1 USD) List for Funding: Invoice tokens become available for investors to purchase💰 Step 2: Investors Fund the Invoice Browse Opportunities: Investors see available invoices Purchase Tokens: Investors buy invoice tokens using PYUSD stable Instant Payout: Once minimum funding is reached, supplier receives immediate payment Wait for Returns: Investors hold tokens until the buyer pays the invoice🏢 Step 3: Buyer Repays & Investors Get Paid Payment Due: Chainlink Automation monitors due dates and notifies the buyer Buyer Pays: Buyer logs in and pays the invoice amount (also handles the payment delay penalty with two days grace period + 4% penalty with each passing day) Automatic Distribution: Smart contract automatically distributes returns to investors based on their token holdings Profit Realized: Investors receive their principal + yield, tokens are burned

Solution

The project is based on daily B2B problems , where the main aim is to keep the fund flow liquidated for Small Manufacturers, who need funds on a regular basis for their enterprise to grow. Often, the Small Manufacturers receive funds from Buyers, roughly 30-60 days after their product is listed. And that is exactly where our project plays a vital role. Our project is basically a Supplier, Buyer and Investor triangle. Now, suppose a product has been listed by the Supplier, but they'll have to wait for, maybe 30 or 60 days ! This is where the Investor steps in, and buys the product from the Supplier, and it is now listed for the Buyers to buy. Now, the investor will receive funds from the buyers, which will complete the triangle. This is how we solve the instant liquidity problem for the Small Manufacturers.The flow of the project is as follows :The Supplier creates an invoice for a product, wherein he mentions the details of the Buyer.To keep the invoices genuine, they are first verifiedOnce the invoices are verified, the PYUSD tokens are minted into the Supplier's wallet, and the invoice is listed for the Investors to purchase.The investors can choose an invoice, and purchase the tokens. The tokens will be transferred in the Investors' wallet.The investor will then receive the appropriate funds from the mentioned Buyer.The techstack that we've used is :Chainlink Automation for redistribution of tokens after Supplier payment.Chainlink Functions for verification of invoices.PayPal's PYUSD as a stable coin for the liquidity of money.