Decentralized peer-to peer USDC lending platform for users to make and receive microloans within their own Trusted Lending Network (TLN).

A user will create a wallet receiving a public and private key. The public key will be stored on a centralized database. The private key on the other hand will be decentralized, recoverable by 12 word phrases. It will be crucial that these 12 word phrases are written down by the user as they will not be able to access their wallet otherwise. Nor will be liable in the event that that happens. Once a wallet is created, a widget will allow an individual to go through an exchange service that transfers fiat currency, USD to USDC with a fractional amount of Ether in an instant. The Ether is required for users to gain storage space on the smart contract and fulfill a loan transaction. In essence, the Ether is a necessary transaction fee. Both the USDC and Ether received will be deposited directly into the user’s wallet linked their ethereum address. The Ethereum address will also act as a crucial identifier linked to the User’s digital ID that includes; full name, etc. After, their profile is formally created, they will enter the smart contract. There, the user can then start inviting other individuals that they know into their trusted lending network. Once both parties add each other to their network, the borrower can request a loan in the smart contract. Since the variables; duration, amount, and interest (if applicable) can be modifiable in the smart contract, both users can change them to their preferences in a separate interface. After reaching consensus, the lender will transfer the USDC. Once the USDC is deposited into the borrower’s wallet, they will use the exchange service and withdraw their funds into fiat currency. Then at the agreed upon time, the money owed is withdrawn from the borrower’s wallet. In order to ensure, that money is present in their wallet prior to being withdrawn, the central database where the login password and email is stored will send an email reminder. If applicable, the smart contract can also calculate an interest rate based on the number of blocks elapsed since the loan was initiated. The same process can be used to apply a credit score. Even more so, based on whether the loan is paid back or not, a grade is assigned to the borrower’s digital ID. Overtime, the credit rating of a user will become more accurate.