UnllooRepayPredictor

Problem Statement

Over-collateralization is a problem: you need money to borrow money, which is capital-inefficient. That’s why we are introducing under-collateralized loans backed by reputation. To improve this approach and reduce centralization in how risk is assessed, we are adding a prediction market for loans. This prediction market allows lenders to opt out of specific loans (by voting “no”) and enables the broader market to adjust a borrower’s effective reputation compared to our internal reputation algorithm. Another benefit is that the market brings additional liquidity into the protocol, which can be useful in the event of a loan default, helping to reduce overall losses.

Solution

We are building on top of ETH Scaffold-ETH 2, using Next.js for the frontend and Hardhat3 for smart contract development. We have also deployed our smart contracts to the Zircuit Garfield Testnet.This tech stack provides a solid foundation for our DeFi dApp, allowing us to build quickly and securely, since Scaffold-ETH has already configured everything we need, and Hardhat allows us to test smart contracts locally and then deploy them to the Zircuit testnet.Because, as a DeFi protocol, our reputation is important to us, we can also benefit from the security provided by the Zircuit sequencer.