💳 BorrowIQ — AI-Powered On-Chain Credit Intelligence

Dynamic Lending • AI Credit Scoring • Zero-Friction Onboarding • Built on Creditcoin

---

📖 Overview

DeFi lending is fundamentally broken because it relies entirely on over-collateralization. If a user wants to borrow $1,000, they have to lock up $1,500. This is highly capital inefficient and locks out millions of users who don't already have massive amounts of crypto. Traditional finance solved this decades ago using credit scores, but Web3 has lacked a secure, decentralized way to measure financial reputation—until today.

BorrowIQ is a next-generation DeFi lending protocol built on the Creditcoin Network that replaces capital-inefficient over-collateralization with an AI-driven on-chain credit engine.

---

⚙️ What it does

BorrowIQ evaluates your on-chain behavior to generate a Credit Score, dynamically determining your interest rate and loan limits.

1. 🧠 AI Credit Scoring: Our Python/FastAPI backend analyzes a wallet's on-chain history (transaction counts, wallet age, existing balances).
2. 📈 Dynamic Interest Rates & Limits: High-IQ borrowers are rewarded with lower interest rates (e.g., 6%), while riskier wallets receive higher rates (e.g., 18%).
3. 📊 Reputation Building: When a user successfully repays a loan with interest, the LoanManager smart contract automatically boosts their on-chain credit score, unlocking better tiers of capital efficiency.
4. ⛽ Gas-Sponsorship (Account Abstraction): The AI backend automatically sponsors new wallets with native testnet Gas so they can borrow instantly without visiting a faucet!

---

🏗️ Architecture & Protocol Flow

BorrowIQ utilizes a 4-layer architecture coordinating the user's wallet, the React frontend, the off-chain Python AI Oracle, and the on-chain Creditcoin smart contracts.

flowchart TD
    %% Define Nodes
    User("👤 Borrower Wallet")
    Frontend("🖥️ Next.js Dashboard")
    Backend("🤖 FastAPI AI Oracle (Gemini 2.5)")
    Admin("🛡️ Oracle Admin Relayer")
    Credit("📜 CreditScoreRegistry.sol")
    Rate("📉 InterestRateModel.sol")
    Pool("🏦 LendingPool.sol")
    Manager("🤝 LoanManager.sol")

    %% Define Flow
    User -- "Connects Wallet" --> Frontend
    Frontend -- "Requests Eligibility" --> Backend
    Backend -- "Analyzes Wallet History" --> Backend
    Backend -- "Generates Score (0-100)" --> Admin
    
    Admin -- "Tx: updateScore()" --> Credit
    Admin -- "Tx: Native Gas Sponsorship (0.1 TCTC)" --> User
    
    Frontend -- "Tx: requestLoan()" --> Manager
    Manager -- "Queries Score" --> Credit
    Manager -- "Calculates APY" --> Rate
    Manager -- "Calculates Max Loan Limit" --> Pool
    Manager -- "Issues ETH" --> Pool
    Pool -- "Transfers Liquidity" --> User

Loading

---

🛠️ Deployed Contract Addresses (Creditcoin CC3 Testnet 🌐)

• Chain ID: 102031
• RPC URL: https://rpc.cc3-testnet.creditcoin.network
• CreditScoreRegistry: 0xf15cE28da7D618643e36120dd2045A6581924BA0
• InterestRateModel: 0x11737650a8F41023708A3200A19C9e8F999FEDa2
• LendingPool: 0xA493d72350454CC14709C2F5E4744C9553c64d62 (Currently seeded with 21.5 TCTC liquidity!)
• LoanManager: 0x8783943ab5dC1e158f77Da10156830669748dC43

---

📂 Project Structure

BorrowIQ/
├── backend/                # Python/FastAPI Oracle & AI LLM Engines
│   ├── ai/                 # Gemini Prompt Engineers for Explanations
│   ├── api/                # Core Routes (Eligibility, Gas Sponsorship, Status)
│   ├── blockchain/         # Web3.py Contract Connection instances
│   └── scoring/            # AI Identity Feature Extractors
├── contracts/              # Solidity Smart Contracts (Core Logic)
│   ├── CreditScoreRegistry.sol
│   ├── InterestRateModel.sol
│   ├── LendingPool.sol
│   └── LoanManager.sol
├── frontend/               # Next.js 14 App Router React UI
│   ├── src/app/            # High-fidelity dashboard & landing pages
│   ├── src/components/     # Modular glassmorphism UI components
│   └── src/lib/            # Wagmi config & generic contract ABIs
└── scripts/                # Hardhat Deployment & Verification Scripts

---

🚀 How to Run Locally

1. Smart Contracts

npx hardhat compile
# Contracts are already live on Creditcoin. See scripts/deploy.js to re-deploy.

2. Backend (AI Oracle)

cd backend
python3 -m venv venv
source venv/bin/activate
pip install -r requirements.txt
uvicorn main:app --reload
# Runs on localhost:8000

3. Frontend (React UI)

cd frontend
npm install
npm run dev
# Runs on localhost:3000

(Requires MetaMask or Wagmi-supported wallet switched to Creditcoin CC3 Testnet)

---

🔥 Hackathon Strengths & Achievements

• Flawless End-to-End Execution: Every transaction natively works exactly as pitched. The UI, the Python backend, and the Solidity Contracts communicate in perfect harmony.
• Abstracted Onboarding: Custom Python admin scripts listen for new user connections and automatically pay their blockchain gas fees natively to guarantee 0-friction testing for Judges!
• Scalable Real-World Applicability: Overcollateralization limits capital. BorrowIQ acts as a true bridge to institutional web3 adoption by making on-chain borrowing look, act, and feel like TradFi credit cards.

📌 Future Roadmap

1. Zero-Knowledge (zk) Compliance: Allow users to cryptographically link their real-world TradFi credit scores (FICO) to their BorrowIQ identity without revealing private personally identifiable information (PII).
2. Cross-Chain Reputation: Expand the CreditScoreRegistry to serve as an omni-chain oracle so that a good score built on Creditcoin translates to borrowing power on Base, Arbitrum, or Solana.

---

👨‍💻 Author

Marka Sai Charan Full Stack & Web3 Developer

🛡️ License

MIT License © 2026 BorrowIQ