Description
Please check out the landing page: Website
Please check out our Github Repo: Github
While considering what we wanted to build for the hackathon, a question crossed my mind....
Wouldn’t it be cool if...?
You could do good and donate to charities without having to pay for it?
I thought, yes this would be cool, but buidling a pepe-powered neo bank is cool, but what problem are we solving here?
The problem
We are primarily looking at the three key obstacles to gift-giving and making donations:
- Traditional gifting and donating requires an upfront payment
- The immediate financial burden can deter potential givers
- Lack of rewards or incentives for givers
While the motivation and willingness to do good is enough sometimes, it's often now and traditional gifting has a high barrier due to this reason. The result is non-profits are not able to raise enough money. But, if only there was a way for them to get this money without the user having to pay for it?
The solution
Make a donation to a charity or a gift to a friend. Get it back 3 months later!
Gifter is a unique defi protocol, that allows you to pay someone immediately, but get the money back in 3 months.
- Reduced Financial Burden: With Gifter Finance, users stake an amount and can reclaim their principal later. This reduces the immediate financial burden and makes it easier for more people to participate in gifting or donating.
- Rewards and Incentives: One of the key features of Gifter Finance is the ability for the donation/gift collectors to share a portion of the rewards with the gift giver. This provides an additional incentive for users to participate in gifting or donating. The prospect of earning rewards can motivate more people to give, thereby increasing the overall amount of gifts and donations.
- Increased Funding for Non-Profits: By making it easier and more attractive for people to give, Gifter Finance can help non-profits raise more money. Users are more likely to commit to a donation if they can do so without an immediate financial burden and with the prospect of earning rewards.
- Transparency and Trust: The use of blockchain technology ensures transparency and builds trust. Users can see where their money is going and ensure it's being used as promised. This can further encourage people to give.
The technology
Soo how does it work? The mechanism involved is illustrated simply in the image below:
When a user wishes to send a gift via Gifter Finance, they deposit a specified amount into a contract. This sum is then invested in DeFi through Swivel, locking it for three months but providing a fixed return.
Uniquely, Swivel allows us to access this yield upfront, our protocol forwards this immediately to the gift recipient or the donation-collecting organization, giving them access to the funds immediately for their use.
At the end of the deposit period, the user will come back to the platform, click the withdraw button and will have access to his funds immediately as we will encash the czTokens stored in the contract with Swivel finance and forward the funds.
Why does this have to be in web3?
In traditional finance, fixed-rate lending often involves complex processes and intermediaries. However, with Web3 and DeFi (Decentralized Finance), this process becomes more straightforward and efficient.
Fixed-rate lending is essential for this as you need to know how the lending rate is before you can give up the rewards upfront, defi makes this process possible, fast and seamless.
Illuminate Finance
We are using the illuminate/swirel smart contract and API to get the USDC tokens on goerli. We use the JSON payload from the API to get the data and signature needed to then call the swirel contract initiate function to get the USDC tokens.
Ethereum Track bounty
This is a public good project built on Ethereum with all our contracts deployed on Ethereum!!