The problem Mirai Protocol solves

1. In the world of DeFi and multiple L1s, liquidity gets fragmented. Fragmented liquidity poses a problem for capital efficiency and adoption.

2. Mirai protocol allows users to interact with the lending protocol from different L1. This means that the core protocol is deployed on one L1 - efficient at processing related transactions. However, users on any other L1s can interact with the protocol.

3. It solves the problem of DeFi composability of cross-chain applications. Mirai protocol can set the standard for how cross-chain protocols should be built and integrated to build different DeFi legos.

4. Current POC allows users on Goerli chain to readily interact with lending protocol on Polygon-Mumbai. Goerli users can deposit, borrow assets, repay their loans and withdraw their assets using the one-click, UX-friendly cross setup Mirai has.

Challenges we ran into

1. Finding the suitable protocol which allows us to craft generalized architecture for cross-chain communication.

2. Accounting logic to make sure that we are able to keep track of protocol and individual balances.

3. Cross-chain transactions take some time to propagate. We have integrated the Push protocol for notifying the users after their cross-chain transaction has been successfully processed. Integration in a short time frame was a bit of a challenge.