Decentralized Finance (DeFi) Lending Platform

Objective:

To create a decentralized platform that allows users to lend and borrow cryptocurrencies without intermediaries like banks, using smart contracts on a blockchain network.

Key Features:

Smart Contracts – Automate loan agreements, interest payments, and collateral handling.

Collateralized Loans – Borrowers must lock assets (like ETH) as collateral.

Decentralized Governance – Token holders can vote on platform upgrades and rules.

Dynamic Interest Rates – Rates adjust based on market supply and demand.

Liquidity Pools – Lenders provide funds to pools and earn interest.

Wallet Integration – Users connect via Web3 wallets (e.g., MetaMask).

Transparency & Security – All transactions are recorded on the blockchain.

Technologies Used:

Blockchain Platform: Ethereum / Binance Smart Chain / Polygon

Smart Contracts: Solidity (Ethereum-based)

Frontend: React.js / Vue.js

Backend: Node.js / Express.js

Web3 Integration: Web3.js / Ethers.js

Data Storage: IPFS (for decentralized data)

Wallet Support: MetaMask / WalletConnect

Security Tools: OpenZeppelin (secure smart contract libraries), Chainlink (for oracles)

How It Works:

User Onboarding:
Users connect their crypto wallet to the platform.

Lending:
Lenders deposit tokens into a liquidity pool and earn interest.

Borrowing:
Borrowers lock crypto as collateral and receive a loan in a different asset.

Smart Contract Execution:
Contracts handle interest calculation, collateral liquidation (if necessary), and repayments.

Repayment & Withdrawal:
Borrowers repay with interest; lenders can withdraw their funds and earned interest.

Benefits:

No Intermediaries: Reduced costs and faster transactions.

Global Access: Anyone with internet and crypto can participate.

Transparency: Transactions are public and verifiable.

Passive Income: Lenders earn yield from interest.

Security: Funds are controlled by code, not a central party.

Innovation: Enables programmable finance and composability with other DeFi apps.