Name of Project / DAO / Company
ZINC Finance
Application type
Product Launch
Proposal overview
Product
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.
- 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.
- 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 -
- By allowing each address to mint a ZincNFT only once; And
- 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)
- 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.
Progress
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]
- Claim your ZincNFT on harmony explorer.
- Create a loan request on ZincLending, specifying loan duration and interest you’re willing to pay.
- Someone evaluates your address tx. history and decides to accept your LoanRequest
- You recieve the UST in your wallet! Enjoy your credit responsibly.
- 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:
- Weeks 1-3: Beta Access & bug testing of ZincNFT contract
- Weeks 3-5: Deployment of live ZincLending contracts that work with ZincNFT, on Harmony Mainnet
- Weeks: 5-6: Development of front-end for easy NFT claiming and NFT-collateralised lending
Team
Our team of 3 has extensive Ethereum dev experience since 2019. Some stats:
-
7 hackathon wins, ~$60,000
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Developed the Near-ETH rainbow bridge in June 2020, which today supports the $27B NEAR ecosystem.
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3 DeFi protocols launched, >$70,000 in protocol revenues over the past 6 months.
Proposal ask
$33,000
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] - https://youtu.be/xPK_FzsnIBI
Gitcoin - Dhruv - https://gitcoin.co/dhruvluci
Gitcoin - Aranyani - https://gitcoin.co/aranyani01
