LayerLender

Screenshots

Problem Statement

This project builds a decentralised credit scoring system that combines Web2 financial profiles and Web3 activity to enable broader access to DeFi. Users can connect their credit history, along with blockchain-based actions like wallet transactions, and token holdings to generate a trustable credit score based on their user risk profile. The system unlocks opportunities for uncollateralised loans while bringing inclusivity in decentralised finance for unbanked and global citizens who no longer need to rely on current banking systems.

Solution

How It's Made We built the project by integrating:--Kinto L2: To manage fast, cost-effective credit scoring computations, offering scalability and instant updates to scores. --Web3Auth: For secure, user-friendly social wallet login, bridging Web2 authentication methods with Web3 wallet connectivity. --The Graph: To query wallet transaction history, identifying patterns like repayments, token holdings, and activity.The solution combines these tools into a modular architecture:--A backend processes Web2 credit data and syncs it with onchain activity. --A frontend offers a user-friendly interface for login, data linking, and score viewing. Privacy-preserving techniques including zK email and hashed data queries ensure user confidentiality.Notably, we created a "state channel-inspired sync layer" to enhance the real-time usability of credit scores for DeFi protocols. This allowed for instant lending decisions without overwhelming the blockchain with transactions.