p2p borrowing and lening protocol on mantle using zklts
Traditional DeFi lending requires 150-200% overcollateralization, locking billions in capital inefficiency and excluding users who lack substantial crypto assets. Meanwhile, centralized fintech lenders demand invasive KYC processes that expose sensitive personal data to security breaches and privacy violations.
Key Pain Points:
Capital inefficiency: Users must lock $150-200 to borrow $100
Market exclusion: 95% of potential borrowers lack sufficient collateral
Privacy risks: Traditional credit checks expose complete financial histories
Trust barrier: No verifiable reputation system in decentralized finance
zkredit combines zero-knowledge TLS (zkTLS) proofs with AI-driven credit assessment to enable undercollateralized P2P lending while preserving user privacy.
How It Works:
Privacy-Preserving Verification: Users generate zkTLS proofs from their bank accounts, payment apps, or credit bureaus without exposing raw data
AI Credit Scoring: Machine learning models analyze verified financial patterns to calculate creditworthiness and default risk
Smart Contract Execution: Credit scores determine loan terms (APR, amount, duration) enforced on-chain
Decentralized Risk Pools: Lenders diversify across multiple borrowers based on AI-assigned risk tiers
zkTLS Layer
Integrates TLSNotary or Plonky2 for generating zero-knowledge proofs of financial data
Proves transaction history, income streams, or credit scores without revealing actual numbers
Verifiable on-chain through ZK proof verification contracts
AI Risk Engine
Gradient-boosted decision trees (XGBoost) trained on anonymized financial patterns
Features: transaction velocity, income stability, debt-to-income ratio, payment history
Outputs: Credit score (300-850), default probability, recommended loan parameters
Continuously learns from platform repayment data
Smart Contracts (Solidity/Rust)
Loan origination with dynamic interest rates based on credit tier
Automated repayment schedules with grace periods
Liquidation mechanisms for partial collateral (20-50% LTV)
Reputation NFTs that improve with successful repayments
Tech Stack
Frontend: React + ethers.js/wagmi
zkTLS: TLSNotary protocol
AI/ML: Python (scikit-learn, XGBoost), deployed via IPFS + Chainlink Functions
Blockchain: EVM-compatible chains (Polygon, Arbitrum, Base)
Oracle: Chainlink for off-chain computation and price feeds
Connect wallet + generate zkTLS proof from 2-3 data sources
AI credit score calculation (viewable by user, hash stored on-chain)
Request loans up to 5x verified income with 30-90 day terms
Lender dashboard showing risk-adjusted APY opportunities
Basic reputation system (on-time payment streak)
Target Users:
Crypto-native users with cash flow needs but insufficient collateral
DeFi yield seekers wanting higher APY than stablecoin pools (12-25% vs 5-8%)
Underbanked populations in emerging markets with mobile money history
Market Size:
DeFi lending TVL: $20B+ (99% overcollateralized)
Global P2P lending: $500B+ market
Addressable market: $50B+ in undercollateralized DeFi lending demand
Multi-chain deployment (Ethereum, Solana, Cosmos)
Integration with decentralized identity (DID) standards
Social graph analysis (on-chain transaction relationships)
Credit delegation allowing high-score users to vouch for others
Securitization of loan portfolios into tradeable tranches
Insurance pools for lender protection (2-5% premium)
Cross-border lending with stablecoin rails
Integration with real-world asset (RWA) protocols
Credit score portability across DeFi protocols (Aave, Compound integration)
Business loans with revenue-based zkTLS verification
Mobile app with biometric zkProof generation
DAO governance for risk parameter tuning
Build the credit layer for Web3—where your on-chain reputation becomes as valuable as traditional credit scores, but remains entirely under your control. Enable a future where 5 billion people can access capital based on verifiable financial behavior, not arbitrary gatekeepers.