Lendvie: A decentralized USDC lending application built on the Ethereum network.

About 220 million people in the United States have a credit score. Of them, roughly 68 million are categorized to have a “poor” rating of 601 or below. This means for a large segment of the population, their credit score affects their ability to lend money that sometimes could be crucial to just get by or even make it more expensive to obtain a loan. Therefore, once individuals are deemed to be untrustworthy lenders by the current banking system, it becomes increasingly difficult for individuals to gain financial independence. On a mission to disrupt this vicious cycle, Lendvie enables its users to make and receive micro-loans outside of the current credit score system.

Product design:

A user will create a wallet receiving a public and private key. The public key will be stored on a centralized database. The private key, on the other hand, will be decentralized, recoverable by 12-word phrases. It will be crucial that these 12-word phrases are written down by the user as they will not be able to access their wallet otherwise. Nor will be liable if that happens. Once a wallet is created, a widget will allow an individual to go through an exchange service that transfers fiat currency, USD to USDC with a fractional amount of Ether in an instant. The Ether is required for users to gain storage space on the smart contract and fulfill a loan transaction. In essence, the Ether is a necessary transaction fee. Both the USDC and Ether received will be deposited directly into the user’s wallet linked to their Ethereum address. The Ethereum address will also act as a crucial identifier linked to the User’s digital ID that includes; full name, etc. After their profile is formally created, they will enter the smart contract. There, the user can then start inviting other individuals that they know into their trusted lending network. Once both parties add each other to their network, the borrower can request a loan in the smart contract. Since the variables; duration, amount, and interest (if applicable) can be modifiable in the smart contract, both users can change them to their preferences in a separate interface. After reaching a consensus, the lender will transfer the USDC. Once the USDC is deposited into the borrower’s wallet, they will use the exchange service and withdraw their funds into fiat currency. Then at the agreed-upon time, the money owed is withdrawn from the borrower’s wallet. To ensure, that money is present in their wallet before being withdrawn, the central database where the login password and email are stored will send an email reminder. If applicable, the smart contract can also calculate an interest rate based on the number of blocks elapsed since the loan was initiated.

To provide zero transaction fees on our lending platform, Lendvie will have a separate investment vehicle that holds low-risk assets like treasury bonds and use the interest earned to offset the cost of gas associated with using the Ethereum Network.

Moving forward as security tokens before more accessible and widely held by the general public, the platform will allow its users to collateralize their tokens as a debt obligation that is paid out to the lender if the borrower defaults on its loan.