Daobitat

Demo

About

Why are you participating for Based Africa? We chose to build on Base because it provides a platform that supports fast, efficient transactions, which is essential for our target market African SMEs. Many of these users may not be familiar with blockchain or have the patience for long transaction times. Base's fast transaction speeds help us overcome this barrier, ensuring users experience quick, seamless interactions. Additionally, Base offers a smart wallet that simplifies access to funds, allowing for easy and secure management of money. This accessibility encourages more users to explore the various credit lines available on our platform which traditional banks have limited activity on in Africa as compared to the developed countries due to the credit risk here. Base, and blockchain technology overall, enables unlocking credit lines such as receivables and soft assets, which are traditionally underutilized in Africa. These assets, recorded on the balance sheet, can now be quantified through on-chain activity. This transparency attracts more participants on the value chain, while our smart contracts ensure lenders maintain control over collateral, providing a secure and efficient lending process. Overally the base community has been supportive on the journey to building real world solutions and the energy for bringing innovations that solve actual problems in Africa inspired our team to build on base as the interest of bringing real world solutions in Africa on chain and live. Additional Features Smart wallets, Base names for credit scores,

How it's made

What challenges are you focusing on? Many SMEs in Africa have valuable assets but struggle with liquidity, limiting their growth and sustainability. Despite being profitable, these businesses often fail because they cannot secure funding through traditional financial institutions like banks or microfinance organizations. This lack of access to capital hampers their potential and stifles the broader economic impact they could have. A key issue these SMEs face is that their assets are often hard to verify. Intangible or unconventional assets pose valuation challenges, particularly in cross-border transactions where legal and financial systems differ. This complexity makes it difficult for lenders to trust the asset's value, resulting in many SMEs being denied much-needed funding. To address this, we are focusing on tokenizing real-world assets and placing them on the blockchain. Tokenization creates digital representations of these assets, making them easier to verify, transfer, and value. By doing so, SMEs gain access to a broader range of financing options, significantly reducing the time required to secure funds. This is crucial for businesses that cannot afford to wait for the lengthy processes of traditional finance. Moreover, many SMEs struggle to complete due diligence required for cross-border financing. The cross-border nature of some assets adds complexity, often excluding businesses from international funding pools. Foreign lenders face difficulties assessing the legal and financial status of a business, adding a layer of risk they might be unwilling to take on. Daobitat solves this by offering transparency through smart contracts. These self-executing contracts, with terms encoded into the blockchain, allow parties to trust the asset's valuation and ownership without intermediaries. This trustless system opens up new funding channels for SMEs, making cross-border transactions more straightforward and accessible. How does your submission address this challenge? Bringing the assets on chain, for SME's requiring to access more funding ensures both the SME's and the lendors are safeguarded. The SME's will unlock a larger pool of investors as the assets are verifiable, and the process of accessing financing will be shorter. Our smart contracts are drafted with the business logic that the real world uses to give credit ,and this reduces the time taken to process facilities. Soft commodities and Assets such as receivables, can now be easily put on chain and the SME's access more funding. Various players in the trade valuechain can have transactions on the plaftorm , reducing the operating risks for the lendors as the SME's get greater credibility as the transactions are processed from financing to actual sale on the chain. The time taken to access the funding will be faster as the assets listed on chain will have a standard value and the due dilligence process would have been handled by the smart contract while listing and reviewing the assets. Simply put, SME's get to access funding, and Investors get to beprotected from the investment risks of default through collateral and use of basenames and scores to calculate the credit scores. Middlemen or brokers get to be eliminated from the chain making the cost of capital cheaper. We give control to both the SME, and the Lendors. Eventually, we are able to onboard micro-lenders and increase activity the ecosystem. Challenges we ran into Being new to web 3 has been a steep learning curve, with one member totally new to tech. With a solid background in Finance having the real world use case was relatively easier to translate to a solid use case however building and learning new technologies has been an uphill. The base buildathon, did give a strong foundation for the tools required and this went a long way to making progress on the project. During the building process, it was recognized that more time was required to ensure the product reached the market meeting on the technical market requirements. This realization led to the decision to resign from the current job in order to fully focus on building for Africa on Base.