Fixed Rate Borrowing

[GENERAL] Name and surname of main applicant

Nguyen Hai Chau

[GENERAL] Are you delivering this project as an individual or as an entity (whether formally incorporated or not)

Individual

[GENERAL] Requested funds in ada

128000

[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)

6

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language

No

[GENERAL] Summarize your solution to the problem (200-character limit including spaces)

We provide a platform for users to access fixed-rate lending with reduced interest rates by utilizing collateral supplied to Liqwid, offering a more stable and cost-efficient borrowing experience.

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

No

[GENERAL] If YES, please describe what the dependency is and why you believe it is essential for your project’s delivery. If NO, please write “No dependencies.”

No dependencies.

[GENERAL] Will your project’s output/s be fully open source?

No

[GENERAL] Please provide here more information on the open source status of your project outputs

We will open-source our smart contracts

[METADATA] Horizons

Yield

[SOLUTION] Please describe your proposed solution

Approach:

- Build a platform with lending pools that offer fixed interest rates and fixed loan terms;

- The user's collateral for the loan will be supplied to Liqwid to generate yield for the pool. When the borrower repays the loan, the collateral tokens will be withdrawn from Liqwid and returned to the borrower.

Major Features:

In this proposal, we're focusing on the fixed-rate borrowing product. In the bigger picture, we’ll develop other modules to support this fixed-rate borrowing module, allowing suppliers, borrowers, and other users to participate in this ecosystem easily.

This proposal's key feature is allowing borrowers to access loans with fixed interest rates and fixed loan terms. This makes financial planning easier for users and minimizes risks from interest rate fluctuations.

Audience:

This project will attract a wide range of participants within the Cardano ecosystem, including those seeking stable financial solutions, liquidity providers, and borrowers. By offering a platform that prioritizes safety and predictable opportunities, we will attract those who are currently underserved by existing options.

------(日本語翻訳)------

提案されたソリューション:

アプローチ:

• 固定金利および固定期間の貸付プールを提供するプラットフォームを構築します。

• ユーザーのローン担保は、Liqwidに供給されてプールのための利回りを生成します。借り手がローンを返済すると、担保トークンはLiqwid (https://liqwid.finance/)から引き出され、借り手に返還されます。

主な機能:

本提案では、固定金利の借入商品に焦点を当てています。将来的には、この固定金利借入モジュールをサポートするための他のモジュールも開発し、供給者、借り手、その他のユーザーが簡単にエコシステムに参加できるようにします。

この提案の重要な特徴は、借り手が固定金利および固定期間でローンにアクセスできるようにすることです。これにより、ユーザーの財務計画が容易になり、金利変動によるリスクが最小限に抑えられます。

対象:

このプロジェクトは、Cardanoエコシステム内で安定した金融ソリューションを求める人々、流動性提供者、借り手など、幅広い参加者を惹きつけます。安全性と予測可能な機会を優先するプラットフォームを提供することで、既存の選択肢では十分にサービスが行き届いていない人々を引き寄せることができます。

[IMPACT] Please define the positive impact your project will have on the wider Cardano community

• Encourage more users to participate in the borrowing platform thanks to reducing the risk of fluctuating interest spiking.
• Our project demonstrates and encourages composability and interoperability between dapps of Cardano.

------(日本語翻訳)------

• 金利の変動リスクを軽減することで、より多くのユーザーが借入プラットフォームに参加することを促進します。
• 私たちのプロジェクトは、CardanoのdApp間のコンポーザビリティと相互運用性を示し、奨励します。

[CAPABILITY & FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

Some of the development team’s experiences that were relevant to this project:

• developing smart contract on Cardano, working with some audit partners;
• deep investigation in Liqwid systems, and also the Pendle project (https://www.pendle.finance/);
• project management with Agile - Scrum method;
• strong QC team with experience in working with audit partners;
• the infrastructure is managed by a strong and dedicated for Cardano projects Site Reliability Engineer team.

The product is being developed on top of Liqwid (https://liqwid.finance/).

Therefore, we are confident in the feasibility of this project.

[PROJECT MILESTONES] What are the key milestones you need to achieve in order to complete your project successfully?

(1 month)

Project Planning and Design.

Outputs:

Function report file:

• an UI Design in Figma;
• a product document with description of all features;
• technical documents with high-level design.

(2 months)

• Exploring lending proposals feature;
• Borrowing features.

Outputs:

A webview prototype should demonstrate the main flow and UI/UX functions.

User can:

• view lending proposals,
• input borrowing parameters on different proposals to compare
• submit a borrowing request.
• topup more collateral & repaying the debt;

(2.5 months)

• Inegrating with Liqwid platform to supply collateral and withdraw collateral when repaying.
• Liquidating feature.

Outputs:

• Report file including borrowing transactions, repaying & modifying, liquidated transactions on Testnet.

(0.5 month)

Final project completion report

Outputs:

• Demo video of the full product. The video presentation must be professional, clear;
• User can use the product on Testnet.

[RESOURCES] Who is in the project team and what are their roles?

Technical Lead: Bui An Nguyen

Project Manager: Nguyen Hai Chau

QC Lead: Le Thi Thanh Ngan

&

Development team

[BUDGET & COSTS] Please provide a cost breakdown of the proposed work and resources

Estimated Project Duration: 6 Months

1. Product Research (₳12,000):
2. Liqwid,
3. Pendle.
4. Project Management (₳15,000)
5. Project Development (₳75,000)
6. Project Testing (₳16,000)
7. Marketing on Testnet (₳10,000)

Total ₳128,000.

[VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?

The cost of project would be small since our proposal is built on top of Liqwid.

It uniquely showcases and promotes composability and interoperability between Cardano's dApps.

Compared to the Optim project (Fund 11 - optim-account-unleashing-dapp-innovation, Find 11 - virtual-ledger-layer), the cost of building this product is small.