LendComm

Problem Statement

We're building a credit score-based lending system on top of trust contracts as the core product the base layer is just the reputation layer that enables it. No one really cares about the underlying game theory in isolation; the real value is in what we make out of it, like enabling loans where borrowers build an onchain credit score through peer interactions and timely repayments, gradually accessing better terms with less collateral required over time. This shifts lending from rigid over collateralization (like in Aave or Compound, where you need 150-200% upfront) to a progressive model where your proven behavior in trust contracts and loans acts as "reputation collateral." Starting over collateralized (using your stake plus partners' in contracts for security), a high aggregate score lets you borrow more efficiently, with defaults penalized through score slashing. This makes lending more accessible for under-capitalized users, while protecting lenders via nuclear penalties and incentives, evolving into true under-collateralization as trust accrues—like traditional credit scores but on-chain.It's not pure under collateralization, since the system secures loans with your collateral plus the shared value from contracts (which includes others' stakes, not entirely yours). Instead, think of it as borrowing leveraged by community trust—using peers' staked funds in contracts to bootstrap your score, then taking/repaying loans on time to boost the aggregate score, which unlocks lower collateral ratios progressively (e.g., from 150% to 80% LTV after consistent performance). It's like FICO: better score = better loans, more opportunities (e.g., higher limits, lower rates, ecosystem perks). We integrate Self Protocol's ZK proof-of-humanity (as they recommended) to verify real users, preventing Sybils from faking contracts and inflating scores.What We're Building: Core Components and Architecture The system models trust as an infinitely repeated game: pairwise contracts with stakes X (yours) + Y (partner's) in a shared vault, actions to cooperate (build score + yields), defect (steal, heavy slash), or exit (withdraw, milder penalty). The aggregate score combines across contracts, weighted by locked value (log scaled for whale resistance), time (square-root for long term bias), partner quality, diversity bonus to favor genuine networks over self-dealing, and penalties greater than gains to enforce cooperation.Use Case: Progressive Credit Scoring for Lending The use case is on-chain credit building for inclusive DeFi, inspired by posts on peer-action credit scores. Start with contracts to prove reliability, then loans to scale repayments compound the score, reducing collateral needs over time. Targets emerging markets: farmers/freelancers build score via micro-contracts, access larger loans without assets.

Solution

we brainstormed and came across with idea of trust contracts which we often use in our day to day life which purely relies on our connection with friendsd, family and acquaintances and the problem statement where borrowing is highly collateralized. We started creating trust contracts, which is similar to the cookie jar concept, where anyone can take money out of it as and when needed. These trust contracts are a similar representation of trust on-chain, leveraging the power of yeilds to get the most out of it. But we realised that these bonds can be used for much beyond this purpose once we unite it with more users .. so we evelved the idea what if we can use this bonds and contract money to get something big which is why i can not use this collateral money to borrow more when needed by not providing all of the colleteral from my side but instead using the money in the bonds to share some of this thus getting most value for my buck. This develops a system of credit score and trust among the users so that the rate of collateral becomes considerably lower, For example, in order to get loans of 100 USD i may have to put a collateral of 150 USR on Aave but with this with an improved Trust scorre I will have to up max upto 115 -120 USDS only, And similarly, of I break the trust I would have to pay the fines or get prem banned from the platformFrontend uses Scaffold Eth, with React and we are using self.xyz for anon-ZK login Backend were doing with Solidty deployed on Cleo Sepolia, AAVE For Staking,