Users borrow against collateral with repayment terms.
The Collateralized Loan Contract is a blockchain-based smart contract designed to enable secure, decentralized lending with collateral backing. It ensures that borrowers provide collateral before receiving a loan and enforces repayment with interest. If the borrower fails to repay within the specified duration, the lender has the right to seize the collateral.
This project eliminates the need for intermediaries, leveraging smart contract automation to create a trustless and transparent lending system.
✅ Collateral-Based Lending – Borrowers deposit 1 ETH as collateral to receive a 0.5 ETH loan.
✅ Fixed Interest Rate – 5% simple interest applies to the loan amount.
✅ Secure & Automated Transactions – Smart contract handles loan issuance, repayment, and collateral liquidation.
✅ Loan Duration Enforcement – Borrowers have 30 days to repay before collateral is forfeited.
✅ Event Logging – Tracks deposits, repayments, and liquidations for transparency.
✅ Trustless Lending – No intermediaries required, ensuring security and efficiency.