The problem StableLend solves

Users can lock up their stablecoins to earn interest. Users who want to borrow stablecoins, have to provide collateral depending on the Collateralization Ratio which is mostly higher than the Amount required in stablecoins. All of the collateral is delegated to a baker during the time of loan to reduce interest rate on the borrower.

Crypto-backed Stablecoins were developed during the hackathon which were pegged to different currencies ( USD, EUR, GBP, JPY) with the help of oracles. Users need to call entry_point in Vault Opener to open a staking based vault for stablecoin.
Once the vault is opened, User can increase collateral to prevent liquidation, and pay back a small percentage of the loan. Since, all the collateral locked up in the Vault (Smart Contract) is staked. The Amount of collateral increases with passage of time and helps in minting more stablecoins by increasing the loan capacity.

StableLend is a much simpler version of Aave on ethereum.

Users can lend stablecoins on Lending smart contracts to earn profits. Interests get accrued with passing of each second. With the help of staking, lenders are able to get much higher returns than in traditional financial institutions and borrowers can have low interest rates.

Smart Contract Addresses and Architecture

Challenges we ran into

1. Developing factory contracts for stable-coin vaults which are integrated with oracles.

2. Pool based mechanism for lending and borrowing smart contract.

3. Optimizing gas fees and minimizing external calls for all the smart contracts.

4. Liquidation Calls whenever the loan gets undercollateralized.

5. Developing interest rate model for the lending smart contract.