BaseLoan integrates AI Agent + DAO + Smart Contracts to create a decentralized, transparent, and efficient microfinance loan approval and disbursement process, ensuring fair use of funds.
Original video link:
https://assets.hackquest.io/hackathons/projects/demoVideo/3T8PEi0nLi6tU7ATvuFx-.mp4BaseLoan integrates AI Agent + DAO + Smart Contracts to create a decentralized, transparent, and efficient microfinance loan approval and disbursement process, ensuring fair use of funds.
Target Audience: Global NGO organizations, helping extremely poor communities access small funding support.
Core Problem: NGOs have limited resources and cannot efficiently review loan applications, leading to corruption and misuse of funds. Extremely poor communities also cannot provide asset collateral for loans.
Business Model: Platform service fee + 3% loan interest.
🔹 Group Credit Assessment: The AI Agent conducts both group and individual cross-interviews, automatically generating a credit score.
🔹 DAO Governance + Smart Contract Disbursement: Reduces human intervention and enhances fund transparency.
🔹 Decentralized Insurance Pool: 1-3% of each loan is allocated as a default compensation fund.
1️⃣ Loan Application (Group-based)
Group Formation: 5-10 individuals from a poor community form a group, get to know each other, and collectively submit a loan application.
Group Representation: The group representative presents their collective request to the AI Agent (including the purpose, goals, personal background, etc.).
2️⃣ AI Agent Cross-Interview
Individual Interview: The AI Agent individually interviews each group member to verify personal and team information.
Cross-validation: The AI Agent designs random questions to check the consistency of the group’s narrative.
Evidence Submission: The group can upload additional proof such as skills certificates or credit records as supporting evidence.
AI Scoring: Based on the interviews and evidence, the AI calculates the group’s credit score and predicts risks.
3️⃣ DAO Approval + Smart Contract Loan Disbursement
DAO Governance: The NGO/investor community votes to decide whether to approve the loan.
Smart Contract Loan Disbursement: The loan is disbursed directly in USDT, with funds released in installments according to the agreed milestones.
Insurance Pool Mechanism: 1-3% of each loan is allocated to a decentralized insurance pool to hedge against defaults.
4️⃣ Repayment & Insurance Compensation
Repayment: Borrowers repay through NGO agents via USDT or fiat currency.
Default Compensation: In case of default, the insurance fund may partially compensate investors for their losses.
Successful Repayment: Timely repayments help improve the group's credit score, making future loans more favorable.
Google Slides:
https://docs.google.com/presentation/d/1G0YLgEDizuZMQ_5fhF4owvVDXfy7IrLtHV027R-D2yU/edit?usp=sharing
We met at Builder House and, within just two days, went from zero to team formation, ideation, and execution of BaseLoan, a decentralized microfinance platform tackling access to capital, financial tools, and identity challenges for the unbanked. Smart Contracts: Deployed MicroLendingPlatform for DAO-approved loans, AI-driven credit scoring, and milestone-based disbursement. AI Agent: Implemented AI-powered borrower verification with cross-validation and automated scoring. DAO Governance: Built AI-driven DAO management for transparent and efficient decision-making. Insurance Pool: Established a decentralized insurance pool, allocating 1-3% per loan to mitigate default risks. Testnet Deployment: Successfully tested smart contracts, DAO governance, and insurance pool on Base Sepolia. Frontend: Designed an intuitive UI, integrated wallet connectivity, and ensured seamless user interactions.
We haven't raised any funding yet.