The problem Sui-Defi solves

Sui-Defi aims to address several key challenges and opportunities in the world of decentralized finance (DeFi) and NFTs.

Efficient Use of NFT Assets: Traditional NFTs often sit idle in wallets, doing nothing. This project allows users to leverage their NFTs as collateral, unlocking their value and providing liquidity for various financial activities.

Access to Credit: It provides a mechanism for users to borrow funds by using their NFTs as collateral. This can be especially beneficial for those who might not have traditional assets to offer as collateral, extending financial opportunities to a broader range of individuals.

Secure Lending: By using NFTs as collateral, lenders have a more secure means of lending their assets. NFTs are unique, easily transferable, and transparently valued, making lending and borrowing more secure.

Earning Passive Income: Users can earn interest on their NFTs by lending them as collateral. This opens up an additional revenue stream, potentially incentivizing NFT holders to participate in DeFi.

Reduced Counterparty Risk: The transparency and programmability of smart contracts can mitigate counterparty risks, making financial transactions involving NFT collateral safer for all parties involved.

Democratizing Finance: This project can make DeFi more inclusive by enabling a broader range of users to access financial services, including borrowing and lending, without the need for a traditional banking infrastructure.

In summary, this project leverages NFTs to make DeFi more accessible, efficient, and secure, offering a range of benefits to both NFT holders and those seeking financial services.

Challenges I ran into

Smart Contract Security: Developing secure smart contracts is crucial. Any vulnerabilities can lead to the loss of NFT collateral or funds. Rigorous security audits and testing are necessary to mitigate this risk.

Compliance: Navigating legal and regulatory requirements, especially in the financial sector, can be complex. Ensuring that the project complies with relevant laws, including Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, is essential.

Oracle Integration: Accurate pricing and valuation of NFT collateral can be challenging. Integrating reliable data sources (oracles) to determine the real-time value of NFTs is a critical technical challenge.

Liquidity and Risk Management: Managing liquidity for borrowers and ensuring lenders are adequately protected is a balancing act. Overcoming this challenge involves developing risk management strategies and mechanisms for handling defaults.

User Adoption: Getting users to trust and adopt this new DeFi-NFT concept can be challenging. User education and a user-friendly interface are vital to onboard a diverse user base.

Scalability: As the project gains popularity, it must handle a growing number of NFTs and transactions efficiently. Scalability issues may arise and need to be addressed to maintain a smooth user experience