Dumpling Farm
Democratising financial freedom by bringing web3 lending to web2 borrowers
About
Dumpling Farm Where you can farm small tasty bites of yield The Problem: - Change narrative of such funding as “donations” act as lego blocks for market participants to build innovative digital financial markets - Change narrative of “sacrifice what you need in order to save other people / the planet” (Maslow’s pyramid) - privacy of lenders and borrowers Current friction points: - Systemic hoarding of capital by centralised bodies: governments, banks, etc - Lack of technological penetration in developing countries - Lack of education inn 2 branches: understanding human motivation and desire to stay exclusive (via jargon and lack of incentive to share knowledge) Solution will address: - Capital must earn more capital from funding such projects --> real-world sustainable APY to lenders - Capital from crypto will finance climate-positive projects - web2 borrowers must have interface to lodge data to apply for loans and be matched to capital; bringing the next billion into web3 Features of protocol: - lender interface: lenders can deposit into pools that are created by the borrowers -borrower interface: they can enter data that can be used to structure the pools, with only strictly necessary data available to public (for example: attestations of web2 credit score that will be one of the parameters to do on-chain "scoring" before borrowers can be matched to loans)
How it's made
A borrower deploys a smart contract allowing lenders to send ERC-20-based funds into it (a pool); funds are then pulled and off-ramped into fiat to fund these companies. After a predetermined duration, the lenders can withdraw their funds with interest. In future, if the lenders withdraw before the pool completion date, they will incur a penalty. Longer commitment times will create higher interest rates. Innovation: - UI is meant to be a 2.5 approach appealing to both defi OGs and web2 lenders. The front-end is a minimal interface for: - borrowers can create a new pool that lenders can deposit funds into, and define timeframes and yield expectations - lenders can browse through existing pools and make deposits/withdrawals from pools. The client uses the Celo ContractKit to allow lenders to deploy contracts directly from their browser. Smart contracts: Truffle + solidity Contracts deployed on Celo Client app: react @celo/react-celo @celo/contractkit