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Build a Full-Fledged DeFi Lending Platform with Smart Contracts

Create a decentralized lending protocol that allows users to supply liquidity, earn interest, or borrow crypto by locking collateral—powered by automated smart contract logic.

Why DeFi Lending Matters?

Decentralized lending removes intermediaries, gives users global access to credit, and provides passive income opportunities. Built on blockchain, it ensures transparent rules, trustless execution, and continuous uptime without traditional banking friction.

Project Objective

Build a DeFi platform where users can lend assets to earn yield or borrow by posting crypto collateral. The system handles interest calculation, loan-to-value ratio enforcement, and liquidation automatically through smart contracts.

Key Features of the Lending Platform

Collateralized Borrowing System

Borrowers must lock tokens as collateral to secure loans and maintain healthy loan-to-value ratios.

Liquidity Pool for Lenders

Lenders deposit assets into pools and earn passive income based on utilization and time.

Interest Rate Models

The smart contract dynamically adjusts interest rates based on supply and demand.

Auto Liquidation

Collateral is liquidated if LTV exceeds the safe threshold, protecting lenders from bad debt.

System Architecture Overview

Lenders deposit supported tokens into pools. Borrowers interact with smart contracts to request loans, post collateral, and pay back with interest. The platform tracks all positions and automatically liquidates undercollateralized loans using real-time price feeds.

  • Solidity contracts for lending pool, loan creation, collateral management
  • Chainlink Price Feeds for up-to-date collateral valuation
  • React frontend with wallet connection for deposit, borrow, repay UI
  • Event logs for every loan issued, repaid, or liquidated
  • Modular architecture for future staking and governance features
Recommended Tech Stack

Smart Contracts

Solidity with SafeMath, Chainlink integration, and ERC20 tokens

Frontend

React.js + Ethers.js + Tailwind CSS for the dApp interface

Blockchain Network

Polygon, Arbitrum, or Ethereum testnets for affordable and scalable deployment

Oracles

Chainlink Price Feeds for real-time asset valuation and liquidation logic

Development Roadmap

1. Develop Smart Contracts

Implement lending, borrowing, collateral, and interest logic with proper access control.

2. Connect Chainlink Oracles

Use Chainlink Price Feeds to track asset prices and calculate loan health.

3. Build User Dashboard

Enable users to deposit, borrow, repay, and view positions with an intuitive UI.

4. Simulate Loan Scenarios

Deploy contracts on testnet and simulate undercollateralization and liquidation cases.

5. Add Pool Analytics and Governance Hooks

Track TVL, APY, utilization, and prepare contracts for DAO integration.

Helpful Resources & Tutorials

Build the Future of Finance with DeFi Lending

Let users lend and borrow assets securely without banks—using code, not contracts.

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