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System Architecture

RemitLend is a decentralized lending platform built on the Stellar network using Soroban smart contracts. It leverages remittance history to establish creditworthiness for migrant workers.

High-Level Component Interaction

sequenceDiagram
    participant B as Borrower
    participant F as Frontend
    participant S as Soroban Contracts
    participant N as NFT Contract
    
    B->>F: Connect Wallet
    F->>F: Fetch Account Data
    B->>F: Mint Remittance NFT
    F->>N: call mint_nft(remittance_data)
    N-->>F: NFT Minted
    B->>F: Request Loan
    F->>S: call request_loan(nft_id, amount)
    S-->>F: Loan Pending
    Note right of S: Lender approves loan in different view
    S-->>F: Funds Disbursed
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Core Components

1. Smart Contracts (contracts/)

  • Remittance NFT: Stores the borrower's reliability score and payment history hash. It acts as collateral for loans.
  • Lending Pool: Manages the liquidity provided by lenders. It handles deposits, withdrawals, and tracking of available funds.
  • Loan Manager: Coordinates the loan lifecycle—request, approval, disbursement, and repayment.

2. Backend (backend/)

The backend is built with Express.js and TypeScript. Its primary roles include:

  • Generating and verifying remittance data (simulated for now).
  • Providing metadata for the Remittance NFTs.
  • Future integration with off-chain financial APIs (Wise, Western Union, etc.).

3. Frontend (frontend/)

The frontend is a Next.js application that provides interfaces for:

  • Borrower Dashboard: Minting NFTs, viewing loan options, managing active loans, and making payments.
  • Lender Dashboard: Providing liquidity, monitoring pool health, and approving/rejecting loan requests.

Data Flow: Loan Lifecycle

  1. Onboarding: Borrower connects their Stellar wallet.
  2. Scoring: Backend generates a remittance score based on history.
  3. Collateralization: Borrower mints an NFT containing this score.
  4. Loan Request: Borrower stakes the NFT to request a loan from the pool.
  5. Funding: Lenders (or automated logic) approve the loan, and funds are sent to the borrower's wallet.
  6. Repayment: Borrower pays back the loan through the dashboard.
  7. Release: Once the loan is fully repaid, the NFT is unlocked and returned to the borrower.

Security Considerations

  • Non-Custodial: Users always maintain control of their funds through their Stellar wallets.
  • Transparent: All loan terms, pool balances, and repayment history are recorded on-chain.
  • Auditable: Smart contract code is open-source and verifiable on the Stellar network.