DeFi Lending and Borrowing Platform: Transition From Web2 To Web3

Unicsoft drafted a product development roadmap for a DeFi solution that would provide higher level of security & risk management for both lenders and borrowers.

About the Client

The Client is a global lending platform that connects lenders and borrowers of any size, from local banks to international lenders. Our Client made it clear that they intended to add more services and scale the existing platform's usability. While the vision was sound, it lacked technical expertise.

Why moving
to Web3 was critical

Crypto and stablecoins are gaining widespread acceptance among consumers. And their use as an exchange for goods and services is growing, so the platform needs to support crypto and Web3 to stand out in the competition.

Product Concept

New solution will allow DeFi lenders to fund a particular loan that is raised by a verified borrower. Borrower will be a known entity that has passed KYB and their profile can be viewed by the lender before they decide to fund the loan. Such an approach will give far more security, transparency and mitigate risks in the lending process.

Business challenges

The Unicsoft team began by taking over development, not from the ground up, but by stepping into the shoes of a lending platform with dozens of clients. The goal was to implement new technologies, thereby expanding the platform’s services to meet the needs of its existing user base.

Shifting a fintech software product to a new business model (from Web2 to Web3) is a challenge that can take months to execute. Unicsoft approached this task by starting in the discovery stage to study the platform’s existing functionality, get acquainted with its codebase, and work out a potential product roadmap.

Technical challenges

Our engineering team’s most critical goals included:

Web 3 implementation

Our business analysts and solution architects needed to calculate every detail involved in shifting the lending platform to the new business model. In particular, introducing cryptocurrencies would create an environment where lenders and borrowers could interact with greater transparency and trust.

Integration with crypto wallets

The transition to Web3 can only take place once adequate crypto and crypto wallet functionality has been implemented. DeFi wallet will be able to receive transaction details, including connection/read requests, send transactions to other wallets and interactions with smart contracts to borrow, lend, withdraw and repay loans.

Development of vaults

While shifting to Web3 and adding support for crypto, the platform needs a place to store smart contracts which securely govern every crypto transaction. The smart contracts allow for programmable features like transfer limits, account locking, allowlisting, paid gas fees, and more.

Solution

Before jumping head first into design and development, analyzing the existing problem and identifying a solution that resolves issues and adds value is critical. This is why we approached this project almost as if building a solution from scratch.

During the discovery stage, we managed to:

Completely map out the project scope and goals resulting in more detailed estimations

Make engineering decisions based on the data that was extrapolated

Create a more convenient user-oriented experience

Reduce development costs

Avoid the need for solution refactoring during the development stages

Results

The Unicsoft development team managed to greatly improve the initial goals of adding Web3 and crypto lending. The enhanced roadmap resulted in accelerated proceedings and streamlined platform functionality being in progress of software development by Unicsoft.

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