Pepe Lending

Pepe Lending with L1SLOAD

Pitch Slides: https://docs.google.com/presentation/d/1X_PZ05CCrw_FPAX8ECQ37vGMiL-xOvJAu9zuUm_43T0/edit?usp=sharing

Project Description

Pepe Lending is a decentralized finance (DeFi) platform designed to provide microloans without the need for collateral. Think of it as a decentralized version of Mercado Pago, enabling users to request and offer small loans through smart contract technology. Our proposal eliminates the collateral requirement by leveraging blockchain technology, specifically using `L1SLOAD` from Scroll, ensuring a more accessible and scalable solution.

Key Features

1. Decentralized Microloans: Users can request and offer small loans without traditional intermediaries, making the process more inclusive.

2. Elimination of Collateral Requirement: Utilizing `L1SLOAD` and blockchain technology, we remove the need for collateral, making microloans accessible to more people.

3. Qualification Criteria; To qualify for a microloan without collateral, users must have repaid a $1000 loan at least one year prior. This criterion helps assess creditworthiness without traditional collateral.

4. Variable Interest Rates: Interest rates are dynamically adjusted based on a mapping of loans conducted on Layer 1, reflecting the user’s loan history and repayment behavior.

Business Model

- How to Qualify for a Microloan Without Collateral:

  - Users must have completed the repayment of a $1000 loan at least one year ago to qualify for a new microloan without collateral.

- Variable Interest Rates:

  - Rates are determined based on a comprehensive mapping of previous loans on Layer 1, ensuring that rates are aligned with the user’s financial behavior.

System Architecture for L1SLOAD 

L1 Smart Contract:

   - Data Storage: Manages loan information, including requests and lender details.

   - Functions: Allows users to request a loan, approve a loan, and check loan statuses.

L2 Interaction Contract:

   - Data Reading and Writing: Uses `L1SLOAD` to interact with the L1 contract from Layer 2.

   - Integration with Scroll: Integrates with Scroll to perform operations efficiently on Layer