Why are you participating for Based SEA?

We’re participating in Based Southeast Asia to bring innovative financial solutions to a region with immense growth potential. Southeast Asia’s emerging markets are rapidly embracing digital assets, yet they face liquidity challenges and lack flexible, user-friendly lending platforms. Magnify Cash aims to bridge this gap by offering a decentralized, efficient, and secure solution for unlocking liquidity using NFTs and real-world assets as collateral. By joining Based SEA, we’re committed to supporting the local blockchain ecosystem and empowering users with tools that enhance financial inclusion and asset management across the region.

What challenges are you focusing on?

Liquidity Constraints: Many users hold valuable NFTs and real-world assets (RWAs) but lack access to liquidity without having to sell those assets. Magnify Cash enables users to borrow against their assets, unlocking liquidity while maintaining ownership, which is critical for individuals and businesses in Southeast Asia.

Limited Access to Flexible Lending Solutions: Traditional lending platforms are often restrictive, supporting only a few assets and requiring complex approval processes. Magnify Cash provides a decentralized solution that allows users to lend and borrow any ERC-20 token against any ERC-1155 or ERC-721 asset, giving the community flexibility and control.

Barriers to Financial Inclusion: Many people in emerging markets face challenges accessing traditional financial systems. With Base's scalability and cost-effective transactions, we’re able to offer a platform that promotes financial inclusion, helping more people leverage their digital and physical assets without the friction of conventional banking.

Risk and Security Concerns: We’ve eliminated the need for oracles and reduced risks like price feed failures, ensuring that users in our community can lend and borrow with confidence, knowing their assets are secure.

How does your submission address this challenge?

Decentralized Lending Platform: Magnify Cash enables users to lend any ERC-20 token against ERC-1155 or ERC-721 assets, including NFTs and RWAs. Unlike traditional platforms, which restrict asset choices, our system lets users create lending desks with customizable terms—interest rates, loan durations, and collateral options. No governance approvals or oracles are required, minimizing complexity and risk. Lenders retain full control over their desks, adding flexibility and security.

Unlocking Liquidity Without Selling Assets: Magnify Cash allows users to borrow against their digital and real-world assets without having to sell them. This unlocks liquidity while retaining ownership—crucial for emerging markets where liquidity is often limited. By providing this option, we offer users financial flexibility that’s especially important in regions where cash flow can be a challenge.

Promoting Financial Inclusion: Using Base’s low-cost, scalable blockchain infrastructure, we provide decentralized lending options to underserved markets in Southeast Asia. Many individuals and businesses in these areas face barriers in accessing traditional finance. Our platform offers them an accessible alternative, fostering greater financial inclusion through decentralized, borderless services.

Reducing Risk and Enhancing Security: By eliminating the need for external oracles, Magnify Cash reduces risks tied to price feed failures and false data. Lenders retain full control over their assets and lending desks, enhancing both security and transparency. This decentralized model creates a safer lending environment where users are in charge of their financial decisions.

Challenges I ran into

Liquidity for NFTs and RWAs:
Enabling lending against NFTs and Real World Assets (RWAs) was tough due to their illiquidity. To solve this, we built a decentralized lending desk model, allowing users to set flexible lending terms and matching borrowers with lenders more effectively.

Oracle-Free Design:
Removing reliance on oracles, which pose risks like price feed failures, was a challenge. We implemented a bonding curve model to adjust interest rates dynamically without needing external price feeds, ensuring fair and secure lending.

User Education and Adoption:
Educating users in emerging markets unfamiliar with DeFi was a key hurdle. We focused on building a user-friendly platform with clear documentation and partnered with local influencers to drive adoption and build trust.

Regulatory Uncertainty:
Navigating differing regulations across Southeast Asia was challenging. We worked with legal advisors to ensure compliance and designed our platform to adapt to changing rules, making Magnify Cash accessible in multiple regions.

Additional Features

BaseNames Integration: Magnify Cash now supports BaseNames, empowering users to create micro-markets for borrowing and lending, with transactions below $1. This is especially beneficial for regions like Southeast Asia, where microtransactions are common. By enabling smaller borrowing and lending thresholds, we’re expanding financial inclusion, allowing more people and businesses to participate in DeFi, even with minimal capital. This marks a shift towards democratizing finance, making decentralized tools accessible to previously underserved markets.

Flexible Stablecoin Support: Magnify Cash has added support for any requested stablecoin on Base. Users can now request the addition of their preferred stablecoins, enabling borrowing of on-chain assets to generate yield or other utilities. While Anzen Finance stablecoins are already integrated, this feature adds greater flexibility, allowing more users to participate. This adaptability ensures that Magnify Cash meets the specific needs of its users, whether local or global, catering to diverse preferences for stablecoin use.

Cross-Protocol Leverage: Magnify Cash allows users to leverage their on-chain assets across multiple DeFi protocols within the Base ecosystem. This capability enhances asset utility, allowing users to maximize the value of their holdings. Whether it’s for staking, liquidity provision, or yield farming, this cross-protocol flexibility enables users to deploy their assets strategically, driving more efficient asset utilization while taking full advantage of the growing Base ecosystem.

NFTLists Expansion: Magnify Cash has expanded support for NFTLists.dev, improving data sets with enhanced filtering for new real-world asset (RWA) collections. This allows for better discovery and interaction with asset-backed NFTs, offering users more precise data and easier access to tangible-asset NFTs. These filtering tools enhance the user experience and enable more focused interactions within the RWA NFT space.