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.
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.
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Signing a repayment plan when a loan is granted with the money to be withdrawn from the mobile money account per repayment time (repayment + interest)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
