The problem Invalend solves

About the Project

Invalend is a capital-efficient DeFi leverage protocol built on the Lisk EVM. It enables users to open leveraged positions using just 20% personal collateral, while the remaining 80% is prefunded via a shared liquidity pool backed by institutional operators and vault providers.

📄 Documentation: https://lisk-invalend.vercel.app/docs

Smart Contracts (Lisk Sepolia Testnet)

All contracts are deployed on the Lisk Sepolia network:
🔎 https://sepolia-blockscout.lisk.com

The Problem It Solves

The need for users to deposit excessive collateral to access leverage.

Traditional on-chain lending protocols typically require 100% or more in collateral, making it difficult for users—especially new traders or those in emerging ecosystems—to access capital-efficient leverage.

What People Can Use It For

• Open leveraged positions on-chain using only 20% of the total capital required.
• Access capital-efficient trading strategies without locking up large amounts of collateral.
• Participate in a permissionless system designed to expand liquidity and support leveraged use cases in the Lisk EVM ecosystem.

How It Makes Things Easier or Safer

• Lowers the capital barrier for leverage — users can do more with less.
• Provides real-time position monitoring and automated liquidation to manage risk.
• Built around USDC, reducing exposure to volatile assets.
• Clear, simple interface for on-chain margin trading without centralized intermediaries.

Challenges we ran into

Challenges I Ran Into

1. Building the 80/20 Prefunding Logic

The concept was simple, but implementing it in smart contracts took time.
We had to make sure that the 80% pooled capital could be locked and tracked properly per user position.
It took a few iterations to get the logic and accounting right.

2. No Liquidation Feature Yet

Due to time constraints, we didn’t include a liquidation system in this MVP.
Instead, we used fixed parameters and simple margin checks to simulate leverage behavior.
We designed the contracts in a modular way so liquidation can be added easily later.

3. Lisk EVM Verification Challenges

We successfully verified our smart contracts on Lisk EVM, but the process was less intuitive compared to more mature networks like Ethereum.
Since Lisk EVM uses a Blockscout-based explorer instead of Etherscan, we had to rely on trial-and-error and AI-assisted help to get the correct verification metadata.
It worked in the end, but took more time and experimentation than expected.

4. Time Constraints

As with most hackathons, we had limited time to build and test.
We prioritized delivering a working core — users can open leveraged positions with 80/20 capital and see their positions tracked correctly.