Invalend
Capital-Efficient DeFi Leverage Protocol
Demo
About
The problem it solves ## About the Project **Invalend** is a capital-efficient DeFi leverage protocol built on the **Lisk EVM**. It enables users to open leveraged positions using just **20% personal collateral**, while the remaining 80% is prefunded via a shared liquidity pool backed by institutional operators and vault providers. 📄 **Documentation**: [https://lisk-invalend.vercel.app/docs](https://lisk-invalend.vercel.app/docs) ## Smart Contracts (Lisk Sepolia Testnet) All contracts are deployed on the **Lisk Sepolia** network: 🔎 [https://sepolia-blockscout.lisk.com](https://sepolia-blockscout.lisk.com) | Contract Name | Address | |----------------------------|--------------------------------------------------------------------------| | **Lending Pool** | [0x752168dd...](https://sepolia-blockscout.lisk.com/address/0x752168dd102d1c4b9390ab6abf3ec39f2164ad11) | | **Loan Manager** | [0x8c0694Ff...](https://sepolia-blockscout.lisk.com/address/0x8c0694Ff8df07554C5a4b2D83992e1987733Ba64) | | **Collateral Manager** | [0x23c369a4...](https://sepolia-blockscout.lisk.com/address/0x23c369a4991a477e4b9dd13f179b2e68203abc1d) | | **Restricted Wallet Factory** | [0x7364eeb3...](https://sepolia-blockscout.lisk.com/address/0x7364eeb345989c757616988b70976bba163b7571) | | **Mock USDC Token** | [0xe61995e2...](https://sepolia-blockscout.lisk.com/address/0xe61995e2728bd2d2b1abd9e089213b542db7916a) | ## The Problem It Solves > **The need for users to deposit excessive collateral to access leverage.** Traditional on-chain lending protocols typically require 100% or more in collateral, making it difficult for users—especially new traders or those in emerging ecosystems—to access capital-efficient leverage. ## What People Can Use It For - Open leveraged positions on-chain using only 20% of the total capital required. - Access capital-efficient trading strategies without locking up large amounts of collateral. - Participate in a permissionless system designed to expand liquidity and support leveraged use cases in the Lisk EVM ecosystem. ## How It Makes Things Easier or Safer - **Lowers the capital barrier for leverage** — users can do more with less. - **Provides real-time position monitoring** and automated liquidation to manage risk. - **Built around USDC**, reducing exposure to volatile assets. - **Clear, simple interface** for on-chain margin trading without centralized intermediaries.
How it's made
Challenges we ran into ## Challenges I Ran Into ### 1. Building the 80/20 Prefunding Logic The concept was simple, but implementing it in smart contracts took time. We had to make sure that the 80% pooled capital could be locked and tracked properly per user position. It took a few iterations to get the logic and accounting right. --- ### 2. No Liquidation Feature Yet Due to time constraints, we didn’t include a liquidation system in this MVP. Instead, we used fixed parameters and simple margin checks to simulate leverage behavior. We designed the contracts in a modular way so liquidation can be added easily later. --- ### 3. Lisk EVM Verification Challenges We successfully verified our smart contracts on Lisk EVM, but the process was less intuitive compared to more mature networks like Ethereum. Since Lisk EVM uses a Blockscout-based explorer instead of Etherscan, we had to rely on trial-and-error and AI-assisted help to get the correct verification metadata. It worked in the end, but took more time and experimentation than expected. --- ### 4. Time Constraints As with most hackathons, we had limited time to build and test. We prioritized delivering a working core — users can open leveraged positions with 80/20 capital and see their positions tracked correctly.