Currently, in the Blockchain Ecosystem, everything that we do is open and visible to all, which is good for some applications but really not appreciated for others. Especially the ones that involve high-value transactions. Yes, I am talking about Decentralized Finance (DeFi).
We took it to our heart to solve this issue that is faced in Compounding Lending Protocols that are also commonly referred to as the future of DeFi industry. There is currently no lending protocol that offers built-in privacy for preserving the transaction amount of loans and borrows carried out by the lenders and borrowers respectively.
We provide a novel solution using zero-knowledge proofs that helps us achieve complete privacy on the MATIC plasma chain. In our solution, the stakeholders can avail of the services of the Platform in complete confidentiality and can still prove its correctness.
With Compound Lending, it makes it very easy for lenders to earn more interest and borrowers to borrow money without waiting for order fulfillment.
The above thing can only be achieved on MATIC because on the mainchain, the cost of doing Zero-Knowledge Transactions is very high.
We have an enormous Business Application in the Enterprise Sector, that has been earlier afraid to use Lending on Blockchain due to its public nature.
Our application also provides an intuitive user interface without users realizing they are interacting with the blockchain.
We have also done a large amount of testing to make sure that our Cryptographic Claims stand solid.
We land up in a lot of challenges during the project, some of which are:
1) Understanding the nuances of the Compound Protocol.
2) Working with AZTEC caused us some trouble as their library is still under heavy development. However, we were able to deal with them. There were issues while collateralizing the assets.
3) We had issues with working with Web3 as we needed to interface it with Aztec.js for Zero-Knowledge Transactions.
4) There were also some issues while deploying the Contracts on MATIC initially.
A huge thanks to MATIC Team for all the support and help during the entire Hackathon.