CrediTrust

Demo

About

The problem it solves ## 📢 Disclosure This project was developed during the parallel timelines of the *Coinbase Agents in Action Hackathon* and *Chromion: A Chainlink Hackathon*. The **Chainlink-powered decentralized lending protocol** was enhanced with Coinbase technologies such as: - 🛡️ **CDP Wallet** – for secure, programmable wallet integration - 💸 **x402pay** – for monetization of on-chain credit-scoring agents The project satisfies the unique requirements of **both hackathons**, and all development occurred **within their official timeframes**. --- #### **📊 Chainlink Data Feeds: Dynamic Risk Pricing** - **Real-time Asset Pricing**: ETH/USD feeds ensure accurate collateral valuations - **Market-driven Rates**: Interest rates adjust based on live market conditions - **Automated Liquidations**: Chainlink price feeds trigger automatic liquidations when needed - **Cross-asset Support**: Support for any asset with Chainlink price feeds #### **⚡ Chainlink Automation: Self-Managing Loans** - **Automatic Interest Calculations**: No manual intervention required - **Scheduled Payments**: Automated monthly payment processing - **Health Monitoring**: Continuous monitoring of loan-to-value ratios - **Emergency Liquidations**: Instant liquidation when thresholds are breached --- ## What People Can Use It For ### 🌍 **Global Financial Inclusion** #### **For the Unbanked (2B+ People)** **Maria in rural Guatemala** has no credit history but owns a small coffee farm. She can: - Stake her farm equipment as collateral (tokenized) - Get matched with global lenders via Chainlink VRF - Receive USDC loans for seed purchases - Build on-chain credit history for better future rates #### **For Cross-Border Business** **Ahmed, a textile exporter in Bangladesh** needs working capital: - Uses local assets as collateral - Gets matched with US/EU lenders automatically - Receives payments in stablecoins instantly - Pays competitive rates based on real-time Chainlink data ### 💰 **Superior Investment Opportunities** #### **For Yield Seekers** - **Higher Returns**: Earn 8-15% APR vs 1-3% in traditional savings - **Automated Portfolio**: Chainlink VRF distributes your capital across multiple borrowers - **Risk-Adjusted Pricing**: Chainlink data feeds ensure fair compensation for risk - **Global Diversification**: Lend to borrowers across multiple countries and sectors ### 🚀 **DeFi Innovation** #### **Leverage Trading** **DeFi Trader Scenario**: - Stake 100 ETH as collateral (valued via Chainlink ETH/USD) - Borrow 80 ETH worth of stablecoins - Use borrowed funds for yield farming - Chainlink Automation monitors position health - Automatic liquidation prevents total loss #### **Cross-Chain Arbitrage** - **Multi-Chain Lending**: Deploy on Ethereum, Polygon, Arbitrum simultaneously - **Unified Pricing**: Chainlink price feeds ensure consistent rates across chains - **Automated Opportunities**: Borrow on cheap chains, lend on expensive chains --- ## How It Makes Things Safer & Easier ### 🛡️ **Safety Through Chainlink Integration** #### **Eliminates Human Error & Bias** - ✅ **VRF Randomness**: Mathematically provable fair lender selection - ✅ **Automated Pricing**: No human manipulation of interest rates - ✅ **Real-time Monitoring**: Chainlink Automation prevents manual oversight failures - ✅ **Transparent Liquidations**: All actions triggered by verifiable price data #### **Prevents Market Manipulation** ```solidity // Example: Chainlink-protected liquidation function checkLiquidation(address borrower) external { int256 ethPrice = chainlinkPriceFeed.latestAnswer(); uint256 collateralValue = (collateralAmount * uint256(ethPrice)) / 1e8; uint256 debtValue = getDebtWithInterest(borrower); if (collateralValue * 100 < debtValue * LIQUIDATION_THRESHOLD) { _liquidate(borrower); // Automatic, no human intervention } } ``` #### **Cross-Chain Security** - **Unified Risk Models**: Same Chainlink data across all supported chains - **Consistent Liquidation**: Identical protection mechanisms everywhere - **Atomic Cross-Chain Operations**: Use Chainlink CCIP for secure cross-chain lending ### ⚡ **Easier User Experience** #### **One-Click Global Lending** 1. **Connect Wallet** → Platform detects all your assets across chains 2. **Set Preferences** → Choose risk level, loan duration, geographic preferences 3. **Stake Assets** → Chainlink VRF automatically matches you with borrowers 4. **Earn Passively** → Chainlink Automation handles everything else #### **Intelligent Loan Management** - **Smart Notifications**: Get alerted before liquidation thresholds - **Automated Payments**: Set up recurring payments that execute via Chainlink Automation - **Dynamic Rates**: Your rate improves automatically as your credit score increases ---

How it's made

Challenges we ran into ### 🚨 **Major Technical Hurdles** #### **1. Chainlink VRF Integration on Local Networks** **Problem**: Chainlink VRF requires a subscription and coordinator that doesn't exist on local Hardhat networks. **Error Encountered**: ```solidity // This would fail on localhost function requestRandomLender() internal { uint256 requestId = COORDINATOR.requestRandomWords( keyHash, s_subscriptionId, requestConfirmations, callbackGasLimit, numWords ); } ``` **Solution Implemented**: ```solidity // Smart fallback for local testing function openCDP(uint256 _collateralAmount, uint256 _creditScore) external { if (address(COORDINATOR) == address(0)) { // Local testing: direct assignment _assignFirstAvailableLender(msg.sender); } else { // Production: use Chainlink VRF _requestRandomLender(msg.sender); } } function fulfillRandomWords(uint256, uint256[] memory randomWords) internal override { address borrower = s_requests[requestId]; address[] memory availableLenders = getAvailableLenders(); uint256 selectedIndex = randomWords[0] % availableLenders.length; _assignLender(borrower, availableLenders[selectedIndex]); } ``` **Key Learning**: Always design smart contracts with testnet/mainnet differences in mind. --- #### **2. Chainlink Price Feed Integration Complexity** **Problem**: Managing multiple price feeds for different collateral types while handling feed failures gracefully. **Challenge**: Price feeds can become stale or fail, which could freeze all liquidations. **Solution**: ```solidity contract ChainlinkPriceManager { mapping(address => AggregatorV3Interface) public priceFeeds; mapping(address => uint256) public heartbeats; // Max staleness allowed function getPrice(address asset) external view returns (uint256) { AggregatorV3Interface feed = priceFeeds[asset]; (uint80 roundId, int256 price, , uint256 updatedAt, ) = feed.latestRoundData(); require(price > 0, "Invalid price"); require(block.timestamp - updatedAt <= heartbeats[asset], "Stale price"); require(roundId > 0, "Round not complete"); return uint256(price); } // Fallback to backup feeds if primary fails function getPriceWithFallback(address asset) external view returns (uint256) { try this.getPrice(asset) returns (uint256 price) { return price; } catch { return getBackupPrice(asset); } } } ``` --- #### **3. Cross-Chain State Synchronization** **Problem**: Keeping lending pools and borrower data synchronized across multiple chains. **Challenge**: A borrower could potentially double-spend collateral across chains. **Solution Using Chainlink CCIP**: ```solidity // Cross-chain borrower registry contract CrossChainBorrowerRegistry is CCIPReceiver { mapping(address => uint256) public globalDebt; mapping(uint64 => bool) public trustedChains; function notifyLoanCreated( uint64 destinationChain, address borrower, uint256 amount ) external { bytes memory data = abi.encode(borrower, amount, "LOAN_CREATED"); Client.EVM2AnyMessage memory message = Client.EVM2AnyMessage({ receiver: abi.encode(crossChainRegistries[destinationChain]), data: data, tokenAmounts: new Client.EVMTokenAmount[](0), extraArgs: "", feeToken: address(0) }); router.ccipSend(destinationChain, message); } function _ccipReceive(Client.Any2EVMMessage memory message) internal override { (address borrower, uint256 amount, string memory action) = abi.decode(message.data, (address, uint256, string)); if (keccak256(bytes(action)) == keccak256("LOAN_CREATED")) { globalDebt[borrower] += amount; emit CrossChainLoanRegistered(borrower, amount); } } } ``` --- #### **4. Chainlink Automation Gas Optimization** **Problem**: Chainlink Automation costs gas for every execution, making frequent health checks expensive. **Challenge**: Balance between safety (frequent checks) and cost (gas fees). **Solution - Smart Trigger Logic**: ```solidity contract OptimizedAutomation { uint256 private lastCheckBlock; uint256 private constant CHECK_INTERVAL = 100; // blocks function checkUpkeep(bytes calldata) external view override returns ( bool upkeepNeeded, bytes memory performData ) { // Only check if enough blocks have passed if (block.number - lastCheckBlock < CHECK_INTERVAL) { return (false, ""); } // Batch check multiple loans address[] memory loansToLiquidate = new address[](0); uint256 count = 0; for (uint i = 0; i < activeBorrowers.length && count < 10; i++) { address borrower = acti