CryptoPortfolio (along with Safer Loans)

One stop solution for Crypto Portfolio of users who get to see all their investments at one place. Also, by using Credit Scores users are divided into 3 different risk pools for giving/taking loans.

The problem CryptoPortfolio (along with Safer Loans) solves

  • One of the biggest problem in shifting from Web 2.0 to Web 3.0 is the ease of use. Having a portfolio on a number of platforms and protocols ends up confusing the user and thus leading to mismanagement. Our dApp focusses on solving this by creating a simple and easy to use Crypto-Portfolio of a user by bringing in data from all the different platforms to one destination.

  • Another problem that the crypto world faces is the security of loans. It is not easy for people coming from Web 2.0 to suddenly trust the decentralised lending and borrowing due to the high amount of risk involved. In order to boost the current loans i.e. lending and borrowing scenario in the DeFi world, there needs to be a safer option especially for beginners.

  • One way to solve this problem is by using the concept of Credit Scores from the Web 2.0 world where we propose that a score could be calculated for each user on our dApp based on three different criteria of a user : Payment History (40 %), Credit Exposure (30%), Credit Duration (30%).

  • Our dApp proposes a System of Pools based on different amount of risk involved. There are 3 pools namely : High Returns High Risk , Medium Returns Medium Risk and Low Returns Low Risk. For lenders, they could invest in any of these 3 pools based on the extent of risk they want to take.

  • For example, High Return Risk Pool would give them lender a high return on lending (30%) but the borrowers in this pool will be the ones who will have a credit score on the lower side and thus increasing the risk factor to some extent. On the other hand, Low Return Risk would give them low returns (20%) but the borrowers will be the ones having a credit score on the larger side.

  • Similarly for borrowers, they can take loans from whichever pool they qualify for according to their credit scores. This largely helps in solving the problem of Risk Taking in Lending/Borrowing, especially for beginners.

Challenges we ran into

  • We had a number of challenges while trying to develop the dApp because it comprises of a lot of different aspects altogether. First challenge was to find an API from where we could actually fetch in real-time data which would help us in the Crypto-Portfolio execution. Using Covalent API largely solved this problem.

  • Secondly implementation of loans was an issue as it is a whole new concept in itself. Sending assets to a smart contract and managing it is also an issue. Plus designing a concept for loans in itself is a big task.

  • So after some researching we found out a way to design a 3 pool system based on different risks involved for loans.

  • Now the biggest challenge was to implement the loans smart contracts ourselves because it is a complex concept, especially holding assets in Smart Contracts. We tried to solve that problem by dividing the overall work, i.e. using smart contracts for documenting the records of lending/borrowing and using web3js for making transactions between accounts and smart contracts.

  • By including Portis in the dApp, the UX became even more swift and easy. Also deploying it on Matic Testnet massively boosts the overall speed and efficiency of the transactions and solved a lot of problems which we could have faced by deploying it on Ethereum Testnet.