The problem MicroPay solves

In recent times, we are seeing a wave of Buy Now Pay Later services provided by several banks .
Along with that we have also seen the rise of Blockchain in Decentralized finance sector.

In these BNPL services, the users have to go through a long process of KYC and prove their credibility to the service provider. Thus the user has to be solely dependent on the bank to approve his/her loan for the next time. Otherwise the user has to go through the hassle of switching different apps to get micro-loans.
This arises a greater problem of tracking the ongoing loans in several apps and process of repaying becomes difficult
Also, in such services the interest rates are fixed by the bank, hence the user cannot browse through different interest rates which are suitable.

Moreover, for the service providers do not hold a collateral from the user hence, the only way to get back the loan is to wait for the borrower to repay back, which greatly affect the repayment rate for the banking institution

Our Solution

• The platform provides borrowers to ask for a sum of money in Ethers providing, the date of repayment and providing a digital asset previously owned by the borrower as collateral

• Lenders can browse through all the requests and make an offer providing the preferred interest rate, after verifying the collateral digital asset.

• Borrowers can now browse through all offers and accept the suitable one. This provides the borrower to choose from several interest rates which switching apps.

• After the loan repayment period is over, if the loan is repaid, the lender earns the principle with interest, otherwise the lender may choose to wait or claim the collateral in which the ownership of the asset is transferred by the platform itself

Challenges I ran into

• The Lender contract had some bugs which were creating duplicate requests which was fixed
• To reduce gas fees the interest function was made in JS instead of Solidity