Airswift aims to build Web3 infrastructures to connect users from the universe to metaverse. It has explored the possibility to build a Supply Chain Financing (SCF) platform on Stellar and released a preliminary product for customers. However, the smart contract and USDC was not available by then. As a result, Stellar blockchain could only play a limited role in the system. With the progress in Soroban and the growth of the ecosystem, as well as the ongoing demands from our SCF customers and partners, we decide to build a web3 native SCF platform on Soroban.

The platform facilitates the decentralized financing of aspects of the real-world business operations such as trade receivables and invoices natively on-chain, creating a fully transparent market which allows creditors (lenders), suppliers (borrowers) and buyers to transact without unnecessary intermediaries.

Credit is essential for economic development and business growth. Only the large businesses get direct access to liquid capital markets. This same access is not available to Small and Medium-sized Enterprises (SMEs). The average cost of capital for the Global 2000 is ~1%, compared to >15% for SMEs. The lack of an open and transparent marketplace denies SMEs access to competitive borrowing rates.

In our platform, suppliers are subject to a fair, but rigorous due diligence process to build trust between all the parties involved. In the medium term, suppliers on the platform will be able to reduce their cost of capital and improve payment terms by building a track record in repayments.

Our business model is based on taking a fee for connecting suppliers and creditors thereby providing transaction funding, supported by dynamic risk analysis and reporting that gives visibility and transparency to all parties (Platform, Creditor, Supplier and Buyer).

The proposed platform will automate the entire process on-chain and settle the funds in USDC on Stellar, includes:

• The Creditor confirms terms and conditions with the Buyer
• A loan smart contract is initiated on chain
• The Supplier uploads the invoices to the platform
• The Buyer validates and confirms the invoices
• As soon as the invoices are confirmed, they will be minted as NFTs and airdropped to the Supplier's wallet.
• The Supplier could split each NFT into multiple NFTs which are the accounts payable (this Supplier owes to other suppliers).
• These NFTs received locked in the same loan smart contract, then these suppliers receive the factored amount in USDC* on stellar.
• When the terms' up, the Buyer pays in USDC to all NFT holders at the face value.

* The USDCs are provided by the Creditor.

This demo video explains the how the platform works with an example: https://drive.google.com/file/d/1eNEOysY6ipZtq7lMMO_lx-uLFVnmBv-J/view?usp=share_link

With the help of Stellar blockchain and Soroban technologies, the supply chain finance payment process becomes fully automated, trackable, and traceable.

We attended the startup camp and won the Top 10. During the bootcamp, we made this demo video: https://drive.google.com/file/d/1eNEOysY6ipZtq7lMMO_lx-uLFVnmBv-J/view?usp=share_link

Here are a list of items we modified:

We updated the project description section to help readers get a better understanding of our project

We added a system flow image to help readers get a better understanding of our project

We updated the deliverable section based on feedback

About the Airswift Supply Chain Finance Platform:

There are 4 roles in the platform:

Platform Administrator – Airswift

Creditor – Factoring companies or lenders. A factoring company pays you a large percentage of the outstanding invoice amount, follows up with your customer for payment, then pays you the remainder of what you’re owed, minus fees.

Buyer – Purchases goods from suppliers and issue payments with net terms

Supplier – Sells goods to Buyer, getting paid per invoices based on net terms. A supplier wants financing its business by selling unpaid invoices for cash advances which is a type of loan, it then becomes a Borrower.

Project background:

AirSwift demonstrates its original supplier chain financing platform in 2022 Meridian (ROME) as an ecosystem partner. The preliminary product has been employed by multiple companies including GRG banking group (002152 (SHE)). This system used to run on a forked version of old Stellar, later on, it worked with FISCO BCOS blockchain framework as well. Currently, it connects with four banks and a couple of core enterprises (https://36.133.9.57:8000/#/login). With the proposed new system, a lot of credit facilities have confirmed their participation and signed the agreement including SellersFunding.com, DowSure group，Linklogis Group (9959-HK), etc.

After the last Meridian meeting, we have also worked with Circle on opening an account to support this platform and other business partners which could potentially offer > 1 billion dollar deal flow to the platform.

We believe that implementing SCF on Stellar helps Stellar become the main network for storing and sharing financial information, increasing its domination in the payment field.

The core team members of the project have extensive experiences in payment and blockchain technologies. As payment experts, they served Tier I cross-border payment customers like Amazon, Apple, West Union, etc. (100+ billion USD transaction volume per year) and have long term business relationships with Visa, MasterCard, UnionPay, etc. Many of our existing customers and business partners could be user of this SCF platform. The team is also one of the three teams who jointly won the first Canadian federal government blockchain project about supply chain traceability.

First deliverable:

The Airswift Supply Chain Finance Platform was developed a couple of years ago. It could not work with the current Stellar network anymore. So the first deliverable will be a working platform on the lastest Stellar network.

What we did:

The platform was deisgned for Chinese market. So the whole system is in Chinese. The first work we did is adding multilingual support feature to the website and did the translation from Chinese to English. The next work we did is setuping a new platform system on Google Cloud. The third work we did is upgrading the Stellar SDK and Stellar blockchain related business logic in the platform so that the system is compatible with the latest Stellar network. The platform was built with Chinese time zone as the only option. It causes the platform can't work correctly in non-Chinese time zone regions. So the last work we did is adding time zone support so that the platform can work globally.

Due to June 14's Stellar Testnet reset, the platform cannot upload information to Stellar Testnet any more. We have fixed this issue.

How can a reviewer check you completed your first deliverable?

The reviewer can validate if the Airswift Supply Chain Finance Platform works with the can validate the integration of the system with the latest Stellar network. There are two criterias should be met,

1. The Airswift Supply Chain Finance Platform itself fully works.

2. The Airswift Supply Chain Finance Platform encrypts and uploads the hashed critical information(e.g. orders, reviews, spliting, etc) to the Stellar network.

The plaform: http://35.232.91.83:3000

Authentications:

Buyer:

• User name: Jack
• Password: Dapp@123

Supplier L1:

• User name: Ken
• Password: Dapp@123

Supplier L2:

• User name: Chris
• Password: Dapp@123

**Click on the send SMS code button and the verification code will be autofilled

A reviewer can follow the instructions in this document to validate the platform:  https://docs.google.com/document/d/1k_sJbOS7IBmMHjQyCC8qYjeAAR_rRP649RGXE3iZR9M/edit?usp=sharing

This document contains one full user story with a step by step guide for user to complete the user story in the Airswift Supply Chain Finance Platform.

We also added a QA session in this document regarding details about uploading documents on the platform.

Please note that the platform system and the user story are designed based on the Chinese supply chain market. After the proof of intent, we will work on adjusting the platform's supply chain business logic based on the market in different countries.  

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