InvoiceChain is a Web3-based invoice financing platform designed to solve the cash-flow gap faced by businesses waiting 30–90 days for invoice payments. By tokenizing invoices as NFTs and settling pay
InvoiceChain is a decentralized invoice financing platform that enables businesses to unlock instant liquidity from unpaid invoices while allowing investors to earn predictable, short-term yields. Sellers mint invoices as NFTs and sell them at a discount, receiving immediate payment, while investors purchase these invoices and automatically receive the full invoice value when the issuer repays. Built on smart contracts with escrow and simulated KYC, InvoiceChain removes intermediaries, increases transparency, and automates settlement, demonstrating a real-world DeFi use case for invoice factoring on the Mantle Sepolia testnet.
We began the hackathon by first understanding the problem space of invoice financing and breaking it down into on-chain primitives. The initial focus was on smart contracts, starting with learning and designing the core building blocks: an ERC-721 Invoice NFT to represent ownership of invoices, and a marketplace contract to handle listing, escrow, purchase, and repayment flows. As the contracts evolved, we explored real-world constraints such as how invoices are actually settled, how yield is generated through discounts, and how to clearly separate principal from yield in a way that would make sense to both users and judges. Next, we spent time researching and implementing compliance-aware design choices. This included simulating KYC flows through whitelisting and role-based access, thinking through custody models for holding invoice NFTs during escrow, and deciding when assets should be held directly by users versus by contracts. We also kept Mantle integration in mind throughout, optimizing for low gas costs, using testnet deployment on Mantle Sepolia, and aligning the system with stablecoin-based settlements rather than volatile native tokens. Once the backend logic was solid, we shifted focus to the frontend. Using Scaffold-ETH 2 with Next.js, RainbowKit, and wagmi, we built clear user flows for sellers and investors. We then integrated the frontend with the deployed contracts, tested end-to-end flows such as minting invoices, listing them, purchasing at a discount, and repaying invoices, and verified balances, ownership transfers, and events on-chain. Throughout the process, we intentionally simplified several complex concepts, such as compliance, custody, and yield mechanics, to make the platform more intuitive and user-friendly while still demonstrating real-world applicability. The final result is a complete, working prototype that balances technical depth with clarity, showing how real-world invoice financing can be brought on-chain in a practical and understandable way.
No fundraising was conducted as part of this project. The focus of the hackathon effort was on learning, experimentation, and building a working end-to-end prototype that showcases compliant invoice tokenization, escrow, and settlement flows on-chain.