Our Platform
The ChainLoan protocol operates on the CELO, a Layer 2 chain on Ethereum. Our solution enables fast, low-cost credit access for unbanked populations through an on-chain platform with AI-driven credit assessment. This mobile-accessible solution streamlines loan processing and empowers private lenders with secure tools to assess, share and manage risk, advancing financial inclusion.
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Our platform contains the following key functionalities:
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Connectivity: the platform allows sub-Saharan SMEs to showcase their project potential to attract retail capital from wealthy nations. Such project visibility then provides retail investors with the opportunity to browse through and invest in a wide range of SMEs
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Fund transfer: all monetary transfers will be performed on the platform via the CELO chain using cUSD, enabling transparency of capital flow.
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Automated credit assessment: the platform performs a credit assessment of the borrowers using their mobile wallet transaction history. The credit assessment is carried out automatically and instantaneously once the borrowers provide their mobile wallet transaction history using a machine learning model.
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Insurance coverage: lenders can choose to purchase insurance policy from the platform to insure against default cases.
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Loan marketplace: when the platform has attracted sufficient amounts of lenders and capital, we intend to open up term negotiation, where lenders can bid for the loans by offering different terms.
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There are 4 key actors on our platform, the lenders, the borrowers, the validators and the insurers.
4 key actors
Actors on our platform
01 Borrowers
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Associated wallet created and linked to mobile money account when signing up
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Describe loan purpose for the project
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Signing a repayment plan when a loan is granted with the money to be withdrawn from the mobile money account per repayment time (repayment + interest)
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Smart contract to return repayment to lender’s wallet and distribute interests according to the risk plan the lender signed up for
02 Lenders
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Lender can select specific project they are interested to invest in
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Investment can be made based on credit scoring provided by validators
03 Validators
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Develop models to evaluate probability of defaults (~ credit scoring in TradFi)
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Provide evaluation for each project through oracles on chain
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ChainLoan will act as the main validator while external validators must stake tokens in order to participate
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Staked tokens are stashed when evaluation is wrong
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Yield rewarded when evaluation is correct
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Reputation associated with validators based on historical performance
04 Insurers
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Providing liquidity into an insurance pool that is used to cover claims in case of defaults
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Fund in insurance pool is managed by ChainLoan, partly used for lending to a selection of projects from borrowers
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Insurance coverage and fee varies per lending project, decided by smart contract based on modelled default probability
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Yield comes from lenders’ premium and partial interest paying back from the selected projects
Capital and data flow
