BitLoans
Borrow stable. Stay onchain
About
The problem it solves In Nigeria, many crypto holders face a common challenge — they need cash liquidity without wanting to sell their ETH. Selling often means losing potential future gains, dealing with complex off-ramp processes, and paying high fees or facing poor exchange rates. BitLoans solves this by allowing users to **borrow cNGN (a stablecoin pegged to the Naira)** using their **ETH as collateral**. ### What People Can Use It For * **Instant Liquidity:** Get spendable cNGN directly in your wallet without selling your crypto. * **Flexible Borrowing:** Use ETH as collateral and redeem it anytime by repaying your loan. * **Avoid Market Losses:** Keep exposure to ETH’s price growth while accessing cash when needed. * **No Bank Middlemen:** All transactions happen onchain — transparent, secure, and censorship-resistant. * **Safe Crypto-Backed Loans:** Borrow with predictable interest rates and clear collateral ratios. ### How It Makes Life Easier * **For traders:** Access liquidity to take new positions without liquidating holdings. * **For students and freelancers:** Cover urgent expenses while holding long-term crypto assets. * **For crypto earners:** Convert value to cNGN safely, avoiding volatile peer-to-peer exchanges. * **For businesses:** Manage short-term cash flow needs with ETH reserves. BitLoans brings **financial flexibility** to the Nigerian crypto community — **no selling, no stress, just borrowing on your terms.**
How it's made
Challenges we ran into #### 1. **Collateral Valuation Accuracy** Since ETH prices fluctuate constantly, ensuring accurate on-chain valuation for collateralized loans was critical. **Solution:** Integrated a Chainlink price feed to fetch real-time ETH/cNGN rates, preventing under- or over-collateralization. #### 2. **Managing Liquidation Logic** Designing the smart contract to automatically liquidate positions when collateral value drops below the safety threshold was tricky. **Solution:** Implemented a modular liquidation check triggered during key contract interactions and admin functions, ensuring predictable and safe behavior. #### 4. **Frontend Design Consistency** Maintaining consistent styling across all pages without performance loss was challenging. **Solution:** Created reusable UI components (GlassCard, GlassButton) with Tailwind and applied global blur and color presets. #### 5. **Simulating Mainnet Loan Scenarios** Testing loan behavior under real-world volatility required multiple simulation setups. **Solution:** Used **Hardhat mainnet forking** and test accounts to simulate ETH price drops, ensuring the platform handled liquidation correctly. Each hurdle improved the system’s **resilience, accuracy, and user experience**, making BitLoans more reliable for real-world use.