PawnStars

Problem Statement

PawnStars Project OverviewKYC Verification (Privacy-Preserving)Users verify their identity using aself-protocol, ensuring privacy without revealing personal information.The KYC proof is validated on-chain using theCelo blockchain, ensuring efficiency and security.After verification, the proof is bridged from Celo to theHashKey chain, allowing cross-platform use.Universal KYC Compliance ContractOn the HashKey chain, aUniversal KYC compliance contractis deployed, which can be imported into any smart contract on the chain.The contract ensures that onlyKYC-verified userscan access specific platform functions like lending and borrowing.RWA Lending PlatformOnce KYC verification is complete, users can participate in theRWA lending platformby submitting necessary documentation proving ownership of the RWA they want to use as collateral.The documentation is cross-verified against the KYC records, ensuring that the pledged asset matches the verified identity.Minting of RWA TokensAfter document verification, the platformmints an RWA token, representing the value of the Real World Asset pledged as collateral.Loan Issuance and Market PricingThe user can now use the minted RWA token to request a loan.The loan request is processed by the protocol and sent to an AI agent formarket analysisto determine the loan price based on real-time market conditions, such as asset liquidity and market volatility.The user is presented with a loan offer, including terms like interest rate, repayment schedule, and loan duration.Loan Acceptance/DeclineThe user can either accept or decline the loan offer based on the terms.If accepted, the loan is issued to the user, and the RWA collateral is locked in the platform’s smart contract for the loan term.Project Features:Privacy-Preserving KYC: The self-protocol for KYC ensures that user identities are verified while maintaining privacy.On-Chain Verification: KYC verification is handled on theCelo blockchain, and compliance is ensured throughHashKey chaincontracts.Dynamic Loan Pricing via AI: Loan pricing is determined by an AI agent, ensuring adaptive loan terms based on real-time market conditions.RWA as Collateral: Real World Assets, such as property or commodities, can be used as collateral for loans.Secure Lending Protocol: The platform ensures that only verified users can access financial features, providing a secure lending environment.Decentralized Finance (DeFi): PawnStars operates in a decentralized manner, offering users full control over their financial transactions without intermediaries.How It Works in Brief:KYC Verification→Bridging KYC Proof to HashKey→Minting of RWA Tokens→Loan Request→AI Market Pricing→Loan Offer Acceptance→Loan IssuancePawnStars revolutionizes lending in the DeFi space by integrating AI-driven market analysis and decentralized KYC compliance, enabling users to leverage their real-world assets as collateral for loans in a secure, privacy-respecting environment.

Solution

PawnStars leverages cutting-edge technologies to create a secure, privacy-preserving lending platform. Here's a breakdown of how the system is built:KYC Verification with self.xyz:We useself.xyzto verify the user's identity without revealing any personal details. This ensuresprivacywhile still confirming the user's credentials. The KYC proof is then validated on-chain using theCelo blockchain, which guarantees security and efficiency.Universal KYC Compliance on HashKey:After successful verification on Celo, the KYC proof is bridged to theHashKey chain. On HashKey, we deploy aUniversal KYC compliance contractthat can be imported into any smart contract on the chain. This ensures that only KYC-verified users can access restricted platform functionalities, such as requesting loans or minting RWAs.RWA Lending Platform on HashKey:Once users are verified, they can participate in theRWA lending platformhosted on the HashKey chain. All processes related to the minting ofRWA tokens, loan requests, and loan issuance are executed on HashKey, benefiting from its scalability and security.AI-driven Loan Pricing:The loan pricing mechanism is powered by an AI agent that analyzes real-time market data to determine the optimal loan terms based on the value of the Real World Asset (RWA) being used as collateral.By combiningCelofor KYC verification andHashKeyfor lending operations, PawnStars offers a seamless, secure, and privacy-respecting decentralized platform for leveraging real-world assets as collateral.