Stellar Community Fund

By ClickPesa Debt Fund

Making DeFi Finance work #2

SCF #28

$95.0K

Legacy v5.0 Community Award

Awarded

We provide Web3 End-to-End transparency and accountability promoting access to funding for financial institutions.

Products & Services

The primary challenge addressed by the ClickPesa Debt Fund is the lack of transparency that often characterizes traditional DeFi lending systems. Typically, once funds are raised, they transition off-chain, leading to a subsequent lack of transparency. This opacity can shy away investors, limit access to capital and availability of capital.

Our project, the ClickPesa Debt Fund, is a decentralized finance (DeFi) debt fund that leverages the Stellar Network and Soroban smart contracts to provide end-to-end traceability in the lending process. The intentions are to bring enhanced transparency to DeFi lending, making each step in the lending chain—from disbursement to repayment—fully verifiable and transparent. The ClickPesa Debt Fund introduces a solution that maintains traceability entirely on-chain, ensuring that every transaction is recorded and accessible, by leveraging our licensed payment gateway ClickPesa, which is already integrated with Stellar and providing a wallet to each MFI. This approach not only increases confidence among investors by providing clear visibility into the flow of funds but also enhances the ability of MFIs and SMEs to secure necessary financing under fair conditions.

Target Audience and Their Benefits:

Lenders benefit from increased transparency, which reduces risk and provides clearer insight into how their funds are being utilized.

MFIs gain better access to funds through a transparent platform, enabling them to expand their operations and support more SMEs efficiently.

SMEs benefit from more readily available funding opportunities, facilitating growth and operational stability.

How does it work and how does it use Stellar and Soroban:

ClickPesa utilizes the Stellar Network for its robust, scalable, and secure infrastructure, which is ideal for handling cost-efficient and reliable transactions. On top of this, we employ Soroban smart contracts with the ClickPesa Debt Fund to automate and secure the lending process:

Disbursement and Collection Visibility: Smart contracts track and verify the actual flow of funds to and from MFIs, ensuring all parties adhere to agreed terms.

Fee Transparency: All fees charged during the lending process are recorded and made visible through the blockchain, preventing hidden charges and fostering trust.

Automated Execution: Our platform automates transactions such as fund disbursements and repayments based on predefined criteria or milestones. For example, when a payment is made, the smart contract automatically executes the necessary actions, such as refunding money back to the appropriate entity.