ZINC | First DeFi Credit Card for Under-Collateralised Lending

Name of Project / DAO / Company

ZINC Finance

Application type

Product Launch

Proposal overview


In a line : “Mint an NFT credit card. Use it to take out NFT-Collateralised UST stablecoin loans. All on Harmony mainnet.

For the first time in DeFi, users can take out Unsecured Loans, akin to a TradFi credit cards/P2P/Personal lending.

ZINC Finance has two key components - ZincCredit NFT credit cards, and the ZincCredit Platform.

  1. ZincNFT credit cards enable users to use their addresses’ transaction history as a credit scoring mechanism.

ZincNFT is the first ever DeFi Credit card- it lets users take stablecoin (UST) loans by locking up their ZincNFT as collateral. Each address can mint a ZincNFT only once; If you default & lose your ZincNFT, you cannot take a loan again. Zinc NFT loans are anonymous and don not create any legal obligations between parties. Instead all incentives and penalties are designed into the protocol itself.

  1. ZincCredit is a Decentralised Finance (DeFi) protocol for NFT-collateralised loans, and NFT lending. ZincCredit allows peer-to-peer NFT-collateralised loans using any HRC721 NFT, on Harmony Mainnet.

Replicating Credit Cards from TradFi

Only a small fraction of the world are banked and have access to easy credit. Many people even earning $50-500k+ in crypto are still unable to access unsecured credit, as banks preferentially issue credit cards only in first world countries, upon production of job & educational documents, etc.

ZincNFT aims to allow each person in the world to use their crypto wallet transaction history as a credit score, to access credit on the same fair and anonymous terms globally.

Previously, crypto addresses with even millions of dollars in tx. volume couldn’t be trusted with a few thousand USD of unsecured credit - simply because they have nothing to lose by not returning the loan, apart from an abstract notion of reputation. ZincNFT makes this notion very explicit -

  1. By allowing each address to mint a ZincNFT only once; And
  2. By linking each ZincNFT URI to the address, making them non-transferable (i.e. I cannot use ZincNFT linked to your address to get credit, just as I cannot use your credit card in real life)
  3. By transferring the credit card to the lender in case you default on the loan. In such an event the only way to get your credit card back is to satisfy the lender outside of the protocol and have them voluntarily send back the NFT.

ZincNFT thus ensures that borrowers have something to lose when they fail to repay an unsecured loans.


Version-1 Contracts for Zinc Finance have already been deployed on Harmony Mainnet.These allow you to mind a unique, one-time ZincCredit NFT card. A separate contract then allows you to take out a loan using this NFT as collateral. The ZincNFT contract is fully functional; the ZincLending Contract is under active development.

How to get a UST loan using Zinc Credit NFT: [Best used with Harmony Explorer]

  1. Claim your ZincNFT on harmony explorer.
  2. Create a loan request on ZincLending, specifying loan duration and interest you’re willing to pay.
  3. Someone evaluates your address tx. history and decides to accept your LoanRequest
  4. You recieve the UST in your wallet! Enjoy your credit responsibly.
  5. Pay back the loan with the promised interest any time before the end of the loan period - use the EndRequest Functionality.

More info on our Github.

Grant Details

We are requesting $33K in equity-free contribution. Our milestones are:

  1. Weeks 1-3: Beta Access & bug testing of ZincNFT contract
  2. Weeks 3-5: Deployment of live ZincLending contracts that work with ZincNFT, on Harmony Mainnet
  3. Weeks: 5-6: Development of front-end for easy NFT claiming and NFT-collateralised lending


Our team of 3 has extensive Ethereum dev experience since 2019. Some stats:

  • 7 hackathon wins, ~$60,000

  • Developed the Near-ETH rainbow bridge in June 2020, which today supports the $27B NEAR ecosystem.

  • 3 DeFi protocols launched, >$70,000 in protocol revenues over the past 6 months.

Proposal ask


Metrics for success

1k users and $100k in transactions in the first 3 months of Mainnet Deployment. (We hope to far exceed these!)

External links

Github Repo/Codebase - GitHub - neutrinoEater/ZincCredit at edited

Cfy.finance polygon demo [live polygon app by our team - being ported with modifications to make ZincLending] - CFY Finance Demo 1 - YouTube

Gitcoin - Dhruv - @dhruvluci | Gitcoin

Gitcoin - Aranyani - @aranyani01 | Gitcoin


@yetti thanks for the proposal. It’s difficult to understand the current progress of the project. You mentioned the contracts have been deployed. Can you share the address? Will there be a UI for this? Have you got a demo?

Please make sure you have reviewed the guidelines because as it stands right now, this proposal is out of scope:

Applications of each launch must have prototyped a feature-full product

And the milestones are:

$10K after launching a feature-complete product on our testnet
$10K after mainnet launch
$10K after forming a DAO with its community
$20K for after 10K users

I’ll keep this open for a while until you’ve had a chance to respond. Thanks.

Hi @giv,
We have a feature complete product already live on Polygon Mainnet.

You can see the demo video on CFY Finance Demo 1 - YouTube .
You can also see our litepaper here: CFY_Litepaper.pdf - Google Drive
And you play around with our live app on polygon network, here: http://cfy.finance/

The UI for the project is already ready as you can see - we will be adding harmony network tabs to all pages. As for the milestones, the four milestones you specify are acceptable to us. Apologies if that wasn’t clear from the application. Prototype contracts have also been deployed on Harmony Testnet:

CarbonNFT address: `0x2B67D5866Ae9e7993b34d1eB206f04B8c59e036d` [https://explorer.testnet.harmony.one/address/0x2b67d5866ae9e7993b34d1eb206f04b8c59e036d]

CarbonLending address: `0xCd078Ab738101FAe4A715079F6BFFdB2479Ed984` [https://explorer.harmony.one/address/0xcd078ab738101fae4a715079f6bffdb2479ed984]

Let us know if this works for you, Look forward to an exciting launch.


Interesting. This is the first platform I know of actually allows NFT as a collateral asset. However, I would love to know more how the value of one NFT is evaluated? Algorithm, or human?

Hi @onnifinn ,
In v1 the value of NFT is evaluated by lenders (i.e. humans) before giving each loan. It is a peer-to-peer lending setup with no centralised valuation.

For v2 we have plans of introducing automated lending markets (ALMs) that algorithmically give loans instantly for certain NFTs with high liquidity and value.

@yetti thank you for the proposal. We’d like to go ahead and approve it. Congrats!


Hi @giv ,
Happy to share that we’ve successfully completed milestone-1 [feature complete testnet launch] for this product. You will find all the relevant details, including links to the codebase in this document: CFY - Harmony Launches Milestone 1 - Google Docs

The testnet app is live on https://staging-cfy.netlify.app/ , please try it out and let us know what you think!
A demo video explaining the functionality can be found here - CFY.finance harmony testnet demo - YouTube

Apologies for the delay, we’ve had a lot on our plate - however we look forward to delivering the next 2 milestones within the coming month. Looking forward to completing our mainnet launch, once this has been approved!

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Here is our wallet address for receiving the grant payouts.


We will setup the recommended multisig wallet from the second milestone as they require one tokens - I hope that works.

CFY/ZINC Finance team

funded: Harmony Blockchain Explorer

@jbeltran will be able to help with your grant follow ups and support you through the rest of your journey @yetti :blue_heart:

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Thanks @lij

We’d like to share that we’ve now completed milestone-2, by deploying our dApp to the harmony mainnet.

Mainnet verified NFTLending contract:

Mainnet dapp:
[will be deployed to https://cfy.finance once approved]

Demo video of working functionality on Mainnet:

Testnet dapp for continued dev & testing: https://staging-cfy.netlify.app/

We’ve now begun work on our DAO towards milestone 3. Look forward to the feedback and comments from the Harmony community!

cc: @jbeltran

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funded: 0x10c44b48596ed4cf1a2c0b9c13e2ce64b232f8815fd0f7af0117024a9fdd0051

Hi @lij ,

Thanks for processing this- Just wanted to let you know that due to the change in ONE token price over last 2 weeks, the amount we originally requested only came out to USD 6539 at the time of transfer, as visible on the explorer. I’m submitting an invoice for the remaining USD 3461 using today’s weighted average price so that you can process it. Hope that’s ok.

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@jbeltran is your contact. note that “No adjustments will be made once the transaction has been sent.”

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@Jacksteroo @cheualx Any updates on this pending payout for milestone-2? We’d love to get back to work on this, but as of now, there is no certainty on grant payout since May. Would be great if you can update me. Thanks!

Address for payout: one195zqxlzpu59nywc2lttfmgr8tfdzfjpmazxuj5

Open sourced code on Github : GitHub - FoundationCryptoLabs/CFY at updated1