Sumary
Indastry: Fintech
BeFund`s service: Smart contracts
BeFund`s team: 1 project managers, 4 developers
Technologies: Solidity, React, Node.js
Terms: 5 month
Cost: >$70K
About the client
Unfortunately, under the terms of the non-disclosure agreement (NDA), we cannot disclose the name of the client company and specific features of the project. However, by mutual agreement, we are able to publicize the general provisions of the project and some key solutions. In the case of your cooperation with BeFund, all issues regarding the publicity of information will be discussed individually.
What`s the problem?
About situation:
Blockchain technology has already made a great contribution to the development of the modern financial sector, and this is not the limit of all possibilities. However, business owners already have unique offers that are in demand among average users. One of these is lending. Without exaggeration, everyone needs fast money, but not everyone dares to take a loan from financial institutions. On the other hand, in order to provide money on credit, the company must have the appropriate amount of free funds. BeFund customers have come up with a way to solve this age-old problem using blockchain and benefit absolutely all interested parties: the borrower, the lender and the company that provides this service. According to previous sociological research, 76% of those looking for cryptocurrency investment methods and 64% of those looking for transparent and loyal loans were interested in this decision. That is why BeFund took up the development of the project, which is already in demand in the United States of America and Canada and has excellent prospects for entering the international arena. The main tasks of the solution:
The goals of project:
- To create an opportunity for investors to profitably invest cryptocurrency to provide credit services;
- To enable borrowers to receive significant loans at a low interest rate and on clear, unchanged terms;
- To develop an effective user P2P platform for seamless interaction between lenders and borrowers;
- To develop smart contracts that will ensure the automated operation of the entire system.
Solution by BeFund
From a technical point of view, all the needs of the BeFund customer are implemented on the basis of the Ethereum blockchain. For this, a number of smart contracts have been created that manage transactions between users and automatically execute the rules specified in them. Each of the smart contracts, including the main one, is optimized according to blockchain requirements for the lowest gas commission. Our development team integrated the ready-made solution with the customer’s website, which allows users to independently perform all the necessary operations, link their own crypto wallets and manage relations with the service.
The logic of the decision is quite simple and attractive to users. Each user can invest in the platform an arbitrary amount of cryptocurrency BTC or ETH and specify the rules according to which he offers to provide assets on credit. Here you can specify the maximum loan term (up to 60 months), which affects the loan rate. The maximum rate is 9% per annum, under such conditions the company receives only 1% commission for providing the platform. This is a simple way of passive income for those who have free cryptocurrency and do not want to spend their time on transactions with it.
A more favorable offer for borrowers. The company is ready to provide loans without checking the credit history of its client, which is the main criterion for other financial structures. Here you can get the most profitable loans for only 1% per annum under the guarantee of your own cryptocurrency assets. All that is required is to transfer the required amount of coins to the company. Almost instantly, the borrower receives the converted amount of USD Coin in his own wallet. But the most pleasant condition for the borrower is a fee for use. Depending on the term of the loan, the borrower receives a charge on the invested cryptocurrency. Therefore, closer to the end of the loan term, he has a choice: to pay off the rest of the loan with these assets, to withdraw the interest for his own needs, or to remain with the company as an investor with previously invested assets and accrued interest.
The idea of BeFund customers is not new, but it is well balanced and really beneficial for all business participants. The main advantages of the project are:
