Winner - Overall Best Web3 Solution
Loan Market
Traditional lending is slow—bank loan approvals can take weeks, bogged down by KYC/AML checks, and evaluated per institution. Loan Market streamlines this process by combining the speed and automation of decentralized finance (DeFi) with the familiarity and compliance of traditional banking by facilitating compliance processes on behalf of all potential lenders at once. LoanMarket engages a trusted third party to verify traditional compliance documents, passing this approval to loan providers, to receive accurate loan offers from multiple providers.
How it was built
The frontend is an SPA built using React, Typescript, and Tailwind, whilst the backend is built in NodeJS using Fastify and PostgreSQL deployed on a Homelab. 


On chain, we're deploying our smart contract to Sepolia using hardhat. Users make an initial request from the frontend to our NodeJS backend containing their KYC and AML compliance documents. These are stored encrypted in a PostgreSQL database for later retrieval, and a signature is produced for storing on chain and later correlation. 

The backend passes the compliance documents to a trusted third party for verification. The trusted party returns a verifiable credential (JWT) containing relevant claims about the data, such as whether the client earns more than a threshold. The backend passes this credential to all of the registered loan providers. Loan providers evaluate the trusted party's claims, and return a loan offer.

The backend aggregates these offers and returns them to the user. The frontend can then present this credential when creating a transaction on chain. The smart contract will verify the credential and it's contents on chain, and execute the transaction against a loan provider's liquidity providing smart contract. Loan providers have independent smart contracts to enable them to deauthorize LoanMarket from acting on their behalf.
