● Product Name:
Bulgogi Finance - 불고기 파이낸스
In the rapidly evolving landscape of blockchain and cryptocurrency, the concept of decentralized finance (DeFi) has gained substantial prominence. At the heart of this movement lies crypto lending protocols, innovative platforms that facilitate peer-to-peer lending and borrowing of digital assets. These protocols leverage smart contracts and blockchain technology to enable users to lend their crypto holdings in exchange for interest, while allowing borrowers to access funds by providing collateral. The abstract explores the architecture, mechanics, and challenges of such protocols, highlighting their potential to reshape traditional financial systems by fostering borderless, transparent, and permissionless lending mechanisms. Through an analysis of their features, risks, and benefits, this abstract sheds light on the transformative potential of crypto lending protocols within the broader context of decentralized finance.
The DeFi ecosystem have flourished in the last few months and not only we’ve been inspired by Klaytn resiliency as one the top blockchain that offers best building blocks for DeFi, we believe DeFi can be more socialized and personalizable while maintaining it’s autonomy and permissionlessness to on-board the next generation of users into the ecosystem.
●What is does:
Bulgogi introduces a decentralized peer to peer lending platform which offers a way enabling lenders to maximize earnings on supplied assets while allowing borrowers access to fixed-term fixed-rate loans, removing the risk exposure of their collaterals to price-based liquidations. Borrowers are required to lock a certain amount of collateral to borrow a loan, in which the Collateral ratio is determined by the Rating group the user is categorized as.
Lenders and borrowers are also enabled to determine who to initiate a loan with based on their social stats and on-chain credibility.
Bulgogi mission is to create a socialized way of lending and borrowing while maintaining DeFi’s autonomy and permissionlessness by offering a decentralized peer to peer way for any individual to engage as a lender or borrower.
Our main goal is to provide an efficient and sustainable way for lenders to maximize their rewards on supplied asset by enabling them the ability to structure their loan terms while also removing the risk of an unexpected liquidation of a borrower’s collateralized loan all being settled on-chain in a fully decentralized manner.
Terms Structuring: Lenders are enabled to create offers with sets of predetermined loan terms, specifying the principal amount and asset type (ERC20), Collateral types, Loan duration, interest rate demanded to be met by a potential borrower.
Asset Vaulting: the principal supplied by a Lender is locked into a principal vault accessible to the lender anytime. The vault serves as a decentralized escrow between a lender and borrowers.
On-Chain matching: loan offers funded by lenders are matched and settled with a borrower once countersigned, all happening seamlessly with all transactions recorded and fully verifiable on-chain.
Loan Managing: on approving and creating a loan offer, lenders are assigned the full authority to a created loan offer of actions like settling borrow requests, repayments claiming, asset vault management all achievable on-chain
Terms Structuring: Borrowers willing to collateralize an asset type for a loan are enabled to create an offer with sets of predetermined terms, specifying the principal amount needed, loan duration, interest rate as a bid to a potential lender.
Offer Bidding: on a lend loan offer, borrowers are allowed to directly request for a borrow loan offer with loan terms relative to the lend loan initially offered by a lender.
Permissionless Borrowing: principals can be borrowed by borrowers permissionlessly from a lend loan offer created by a lender, once the loan terms demanded are met.
Customed Repayment: loan repayments are ease for borrowers to reassess their collateralized asset anytime once repaid. Repayments can be paid in proportions or once within the loan duration specified.
A Flow diagram example.
Here is brief flow diagram showing how loan settlements works between lenders and borrowers.
Note: Emissions accrued claimable by the lender includes both the one accrued on the principal (while waiting to be borrowed), and on the borrowers collateral (while waiting for repayment).
Milestone 1: Development (application development is made after the proposal is received from Community or Committee)
Milestone 2: Beta testing (Deploy dapps on the testnet network, and bring the community to participate)
Milestone 3: Smart contact auditing (This is use so that smart contracts are more secure and trusted for community use on the mainnet)
Milestone 4: Deploying dapps on the mainnet network
Note: The Development and operation may take 3 Weeks ~ 6 Weeks, Or approximately 1 month after the proposal is received.
We have a request for a Grant of $36000 for application development and operations
-Aldi - Full stack Web3 Developer
This project is currently in the DEMO stage and has not yet been deployed on a testnet or mainnet network, if you want to try our demo product you can DM to our Twitter below:
@bulgogifinance or @0xMelz
I am Melz who wrote this proposal, thanks for everything especially to the Klaytn team, if you have any questions about this proposal I will be happy to answer.