TokenLend - RWA-Backed SME Lending Platform

Unlock liquidity from real-world assets through AI-powered decentralized lending

Built for Mantle Hackathon 2026 | Tracks: RWA/RealFi, DeFi & Composability, AI & Oracles

Live Demo | Documentation | Smart Contracts

🌟 Overview

TokenLend is a decentralized lending platform that enables SMEs in emerging markets to access stablecoin loans using their real-world assets (RWA) as collateral. By combining blockchain technology with AI-powered asset valuation, TokenLend bridges the gap between physical assets and digital finance.

The Problem

700+ million SMEs globally struggle to access affordable credit
Banks require extensive documentation and formal collateral
$5.2 trillion credit gap in emerging markets (IFC, 2021)
Physical assets (phones, equipment, inventory) sit idle as untapped liquidity
Traditional lending lacks transparency and fair risk assessment

Our Solution

TokenLend allows SMEs to:

Upload real-world assets (phones, laptops, machinery, vehicles)
Get instant valuation through AI-powered assessment
Receive tokenized collateral as ERC-721 NFTs
Access stablecoin loans (USDT, USDC, MNT) up to safe LTV limits
Repay flexibly and unlock collateral
Build credit history on-chain for future access

Lenders benefit from:

Transparent risk scoring via AI assessment
Verifiable collateral through tokenized assets
Secure lending with automated liquidation
Attractive returns through competitive interest rates
Global opportunities without geographic barriers

🎯 Key Features

For Borrowers (SMEs)

🖼️ Asset Tokenization

Upload photos of real-world assets
AI analyzes condition, authenticity, and value
Mint ERC-721 NFT representing asset ownership
Collateral locked on-chain during loan period

💰 Flexible Borrowing

Request loans up to asset's Loan-to-Value (LTV) limit
Choose loan duration and interest rate
Multi-stablecoin support (USDT, USDC, MNT)
Transparent fee structure (no hidden costs)

📊 Dashboard & Tracking

View all active and past loans
Track repayment progress
Monitor collateral status
Build on-chain credit history

🔓 Collateral Management

Repay anytime to unlock assets
Automatic collateral release on full repayment
Grace period before liquidation
Notifications for payment dues

For Lenders

🔍 Browse Investment Opportunities

Explore available loan requests
Filter by asset type, LTV, interest rate
View detailed AI valuation reports
Assess borrower risk scores

🛡️ Secure Lending

Collateral locked in smart contracts
Automated interest accrual
Liquidation rights after default + grace period
Multi-stablecoin investment options

📈 Portfolio Management

Track all funded loans
Monitor repayment status
View earnings and interest accrued
Diversify across asset types

🤖 AI-Powered Risk Assessment

GPT-4 Vision analyzes asset images
Condition scoring (mint to poor)
Damage detection and red flags
Market price estimation

🏗️ Architecture

Technology Stack

Blockchain Layer

Network: Mantle (Layer 2, low fees, high throughput)
Smart Contracts: Solidity 0.8.20
Standards: ERC-721 (Asset NFTs), ERC-20 (Stablecoins)
Security: OpenZeppelin, ReentrancyGuard, SafeERC20

AI & Backend

AI Engine: OpenAI GPT-4 Vision API
Backend: Node.js, Express.js
Database: MongoDB (user profiles, KYC, valuations)
Authentication: JWT + Web3 wallet signatures
Storage: IPFS (asset images, metadata)

Frontend

Framework: Next.js 15 (React 19, TypeScript)
Styling: Tailwind CSS v3
Web3: wagmi v3, RainbowKit, viem, ethers v6
State Management: Zustand
UI: Custom component library with glass morphism design

System Flow

1. ASSET UPLOAD & VALUATION
   Borrower uploads asset photos
          ↓
   Backend stores on IPFS
          ↓
   GPT-4 Vision analyzes images
          ↓
   Returns: condition, value, LTV
          ↓
   Smart contract mints Asset NFT

2. LOAN REQUEST
   Borrower creates loan request
          ↓
   Specifies: principal, rate, duration
          ↓
   Smart contract validates against LTV
          ↓
   Loan posted to marketplace

3. LOAN FUNDING
   Lender browses requests
          ↓
   Reviews AI valuation & terms
          ↓
   Funds loan with stablecoins
          ↓
   Asset NFT locked as collateral
          ↓
   Funds transferred to borrower

4. REPAYMENT
   Borrower makes payments
          ↓
   Interest calculated on-chain
          ↓
   Smart contract tracks balance
          ↓
   On full repayment: Asset NFT unlocked

5. DEFAULT & LIQUIDATION
   Payment overdue + grace period passed
          ↓
   Lender initiates liquidation
          ↓
   Asset NFT transferred to lender
          ↓
   Lender can claim physical asset

🔐 Smart Contracts

AssetToken.sol (ERC-721)

Tokenizes real-world assets as NFT collateral.

Key Functions:

mintAsset() - Create NFT with AI valuation metadata
lockAsset() - Lock collateral when loan funded
unlockAsset() - Release collateral on repayment
getMaxLoanAmount() - Calculate max borrowable based on LTV

Asset Metadata:

struct Asset {
    string assetType;        // "phone", "laptop", "car", etc.
    uint256 aiValuation;     // AI-estimated value (USD, scaled)
    uint256 maxLTV;          // Max loan-to-value ratio (basis points)
    uint256 createdAt;       // Timestamp
    address borrower;        // Asset owner
    bool isLocked;           // Collateral status
    uint256 loanId;          // Associated loan ID (if locked)
}

LoanManager.sol

Manages full loan lifecycle from creation to settlement.

Key Functions:

createLoan() - Borrower initiates loan request
fundLoan() - Lender provides capital
makeRepayment() - Borrower pays principal + interest
liquidateLoan() - Seize collateral on default

Loan Structure:

struct Loan {
    uint256 loanId;
    address borrower;
    address lender;
    uint256 assetTokenId;    // Collateral NFT
    uint256 principal;       // Loan amount
    uint256 interestRate;    // Annual rate (basis points, e.g., 1000 = 10%)
    uint256 duration;        // Loan term (seconds)
    uint256 startTime;       // Funding timestamp
    uint256 totalRepayment;  // Principal + interest
    uint256 amountRepaid;    // Cumulative payments
    LoanStatus status;       // Active, Repaid, Liquidated
    address stablecoin;      // USDT/USDC/MNT address
}

Interest Calculation:

Simple interest: (principal × rate × duration) / (10000 × 365 days)
Pro-rated for custom durations
No compounding

Security Features:

ReentrancyGuard on all financial functions
Ownable for admin controls
SafeERC20 for token transfers
Transfer prevention on locked NFTs
7-day grace period before liquidation

🤖 AI Valuation Engine

How It Works

Image Analysis
- Borrower uploads 1-5 photos of asset
- Images stored on IPFS
- GPT-4 Vision processes images
Assessment Criteria
- Authenticity: Matches user-provided model/brand?
- Condition: Physical state (scratches, damage, wear)
- Functionality: Working condition (if visible)
- Red Flags: Stock photos, mismatched descriptions
Condition Scoring
- 1.0 = Mint/New (perfect, no wear)
- 0.9-0.95 = Excellent (minimal wear, like new)
- 0.8-0.89 = Good (light wear, fully functional)
- 0.6-0.79 = Fair (moderate wear, cosmetic damage)
- 0.4-0.59 = Poor (heavy wear, visible damage)
- <0.4 = Very Poor (severe damage, questionable functionality)
Value Estimation
- Cross-reference market price APIs
- Apply depreciation based on age
- Adjust for condition score
- Conservative valuation approach
LTV Calculation
- Asset value × condition score × safety margin
- Typical LTV: 50-70% depending on asset type
- Lower LTV for higher-risk categories

AI Response Format

{
  "matches": true,
  "detectedModel": "iPhone 14 Pro 128GB",
  "detectedBrand": "Apple",
  "physicalCondition": "excellent",
  "conditionScore": 0.92,
  "damageNotes": ["minor scratch on bottom edge"],
  "confidence": 0.94,
  "redFlags": [],
  "isStockPhoto": false,
  "estimatedValue": 850.00,
  "maxLoanAmount": 595.00,
  "recommendedLTV": 70
}

💳 Stablecoin Support

Supported Currencies

USDT (Tether) - 6 decimals

Most liquid stablecoin globally
Preferred by international lenders

USDC (USD Coin) - 6 decimals

Regulated, fully backed
Popular in institutional finance

MNT (Mantle Token) - 18 decimals

Native Mantle network token
Lowest gas fees

Multi-Currency Lending

Borrowers specify preferred stablecoin
Lenders can fund in any supported currency
Exchange rate handled off-chain if needed
All contracts store values in smallest unit (wei)

Fiat Off-Ramp (Future)

Partner with local exchanges for NGN conversion
Enable cash withdrawals in emerging markets
Maintain stablecoin backing on-chain

📱 User Interface

Design Philosophy

Glass Morphism Aesthetic

Translucent cards with backdrop blur
Gradient accents (indigo to purple)
Dark theme optimized for readability
Modern, professional appearance

Responsive & Accessible

Mobile-first design
Touch-friendly interface
WCAG accessibility standards
Fast loading times

Component Library

Input, Select, Textarea (form controls)
Button (5 variants, 3 sizes)
Modal (dialog system)
Toast (notifications)
Badge (status indicators)
Card (container layouts)
Spinner (loading states)

User Experience

Borrower Journey

Connect wallet
Click "Borrow" in navbar
Upload asset photos
View AI valuation
Set loan terms
Submit request
Wait for funding
Receive stablecoins
Make repayments
Reclaim collateral

Lender Journey

Connect wallet
Click "Lend" in navbar
Browse loan marketplace
Review asset details
Check AI assessment
Fund selected loan
Track repayments
Earn interest
(If default) Claim collateral

Dashboard Features

Borrower Dashboard

Active loans overview
Total borrowed & repaid
Payment schedules
Collateral status
Quick action buttons

Lender Dashboard

Available opportunities
Funded loan portfolio
Total invested & earned
Interest tracking
Performance metrics

🔒 Security & Trust

Smart Contract Security

Audited Patterns: OpenZeppelin battle-tested libraries
Reentrancy Protection: NonReentrant modifier on all state-changing functions
Access Control: Role-based permissions (Ownable)
Safe Math: Built-in overflow protection (Solidity 0.8+)
Token Safety: SafeERC20 for all transfers

Risk Mitigation

For Lenders:

Collateral exceeds loan value (LTV < 100%)
AI-verified asset authentication
Automatic liquidation mechanism
Grace period for borrower emergencies
On-chain transparency

For Borrowers:

No credit check required
Fair AI-based valuation
Flexible repayment terms
Collateral returned on completion
Privacy-preserving design

KYC & Compliance

Optional KYC for larger loans
Document verification
AML screening
Regulatory compliance framework
User data encryption

🌍 Impact & Use Cases

Target Users

Small & Medium Enterprises (SMEs)

Retail shop owners
Manufacturers
Service providers
Freelancers
Gig economy workers

Geographic Focus

Nigeria (primary)
Sub-Saharan Africa
Southeast Asia
Latin America
Emerging markets globally

Real-World Scenarios

Example 1: Phone Shop Owner (Nigeria)

Owns 20 smartphones worth $10,000
Needs $6,000 for inventory restocking
Uploads phones → AI values at $10,500
Gets loan of $6,000 (60% LTV) at 15% APR for 60 days
Repays $6,150 after selling inventory
Unlocks phones, expands business

Example 2: Tailor (Kenya)

Owns industrial sewing machine worth $2,000
Needs $1,200 for fabric purchase
Uploads machine → AI values at $1,950
Gets loan of $1,200 (62% LTV) at 12% APR for 45 days
Repays $1,218 after completing orders
Unlocks machine, continues operations

Example 3: Delivery Driver (Philippines)

Owns motorcycle worth $3,500
Needs $2,000 for vehicle maintenance
Uploads motorcycle → AI values at $3,400
Gets loan of $2,000 (59% LTV) at 18% APR for 30 days
Repays $2,030 after working
Unlocks motorcycle, back to earning

🚀 Getting Started

For Borrowers

Visit TokenLend Platform
```
https://tokenlend.app
```
Connect Wallet
- Click "Connect Wallet"
- Approve MetaMask/WalletConnect
- Mantle network auto-configured
Upload Asset
- Click "Borrow" → "Upload Asset"
- Take 3-5 clear photos
- Fill asset details
- Submit for AI analysis
Create Loan Request
- Review AI valuation
- Set loan amount (up to max LTV)
- Choose interest rate & duration
- Submit request to marketplace
Receive Funding
- Wait for lender to fund
- Stablecoins sent to your wallet
- Collateral NFT locked
Repay Loan
- View repayment schedule
- Make payments anytime
- Track progress on dashboard
- Unlock collateral on completion

For Lenders

Connect Wallet
- Same as borrowers
Browse Marketplace
- Click "Lend" → See available loans
- Filter by asset type, rate, LTV
- Sort by risk/return
Review Loan Details
- Click loan to see full details
- Check AI assessment
- Verify collateral value
- Assess borrower (optional KYC)
Fund Loan
- Click "Fund Loan"
- Approve stablecoin transfer
- Confirm transaction
- Loan activated
Track Investment
- Monitor on "My Investments" tab
- View repayment progress
- Track interest earned
- (If default) Initiate liquidation

📊 Tokenomics & Fees

Platform Fees

Loan Origination Fee: 1-3% (deducted from principal at funding)

Small loans (<$500): 3%
Medium loans ($500-$2,000): 2%
Large loans (>$2,000): 1%

Repayment Fee: 0% (no penalty for early repayment)

Liquidation Fee: 5% (deducted from collateral value)

Fee Distribution

70%: Platform treasury (development, operations)
20%: Insurance fund (cover defaults beyond collateral value)
10%: Community rewards (future governance token holders)

Interest Rates

Set by Market Dynamics

Borrowers propose rate
Lenders decide if acceptable
Competitive marketplace ensures fair rates

Typical Ranges

Low-risk assets (phones, laptops): 10-15% APR
Medium-risk (vehicles, machinery): 15-20% APR
High-risk (inventory, perishables): 20-30% APR

🛠️ Development

Prerequisites

Node.js >= 18
npm or yarn
Git
MetaMask wallet
Mantle testnet MNT (from faucet)

Installation

# Clone repository
git clone https://github.com/your-org/tokenlend.git
cd tokenlend

# Install dependencies
npm install --legacy-peer-deps

# Setup environment
cp .env.example .env.local
# Edit .env.local with your API keys

# Run development server
npm run dev

Project Structure

tokenlend/
├── contracts/              # Solidity smart contracts
│   ├── AssetToken.sol
│   ├── LoanManager.sol
│   └── MockStablecoin.sol
├── backend/                # Express.js API
│   └── src/
│       ├── controllers/
│       ├── services/
│       ├── models/
│       └── routes/
├── frontend/               # Next.js application
│   ├── app/                # Pages (Next.js App Router)
│   ├── components/         # React components
│   ├── lib/                # Utilities, hooks, services
│   └── public/             # Static assets
├── test/                   # Smart contract tests
└── scripts/                # Deployment scripts

Testing

# Smart contract tests
npx hardhat test

# Frontend tests
npm run test

# E2E tests
npm run test:e2e

Deployment

# Deploy to Mantle testnet
npx hardhat run scripts/deploy.js --network mantleTestnet

# Verify contracts
npx hardhat verify --network mantleTestnet <CONTRACT_ADDRESS>

🗺️ Roadmap

Phase 1: MVP (Current)

Phase 2: Beta Launch

Phase 3: Mainnet

Phase 4: Scale

🤝 Contributing

We welcome contributions from the community!

How to Contribute

Fork the repository
Create feature branch (git checkout -b feature/amazing-feature)
Commit changes (git commit -m 'Add amazing feature')
Push to branch (git push origin feature/amazing-feature)
Open Pull Request

Development Guidelines

Follow existing code style
Write tests for new features
Update documentation
Keep commits atomic and descriptive

Bug Reports

Use GitHub Issues with:

Clear description
Steps to reproduce
Expected vs actual behavior
Screenshots if applicable

📄 License

This project is licensed under the MIT License. See LICENSE file for details.

🙏 Acknowledgments

Mantle Network for blockchain infrastructure
OpenAI for GPT-4 Vision API
OpenZeppelin for secure smart contract libraries
RainbowKit for wallet connection UX
Vercel for frontend hosting

📞 Contact

Website: https://tokenlend.app
Email: [email protected]
Twitter: @TokenLend
Discord: Join Community
GitHub: tokenlend

🏆 Hackathon

Built for Mantle Hackathon 2026

Tracks:

🏦 RWA/RealFi - Tokenizing real-world assets
🔗 DeFi & Composability - Lending protocol on Mantle
🤖 AI & Oracles - GPT-4 Vision for asset valuation
🎨 UX/Demo - Polished user experience

Empowering SMEs. Securing Lenders. Building Trust.

Made with ❤️ for the next billion DeFi users

Name		Name	Last commit message	Last commit date
Latest commit History 36 Commits
backend		backend
contracts		contracts
deployments		deployments
docs		docs
frontend		frontend
scripts		scripts
test		test
.env.example		.env.example
.gitignore		.gitignore
AI_VALUATION_ENGINE.md		AI_VALUATION_ENGINE.md
DEMO_SCRIPT.md		DEMO_SCRIPT.md
POST_HACKATHON_ROADMAP.md		POST_HACKATHON_ROADMAP.md
PROJECT.md		PROJECT.md
README.md		README.md
backend.log		backend.log
frontend.log		frontend.log
hardhat.config.js		hardhat.config.js
hardhat.log		hardhat.log
package-lock.json		package-lock.json
package.json		package.json

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TokenLend - RWA-Backed SME Lending Platform

🌟 Overview

The Problem

Our Solution

🎯 Key Features

For Borrowers (SMEs)

For Lenders

🏗️ Architecture

Technology Stack

System Flow

🔐 Smart Contracts

AssetToken.sol (ERC-721)

LoanManager.sol

🤖 AI Valuation Engine

How It Works

AI Response Format

💳 Stablecoin Support

Supported Currencies

Multi-Currency Lending

Fiat Off-Ramp (Future)

📱 User Interface

Design Philosophy

User Experience

Dashboard Features

🔒 Security & Trust

Smart Contract Security

Risk Mitigation

KYC & Compliance

🌍 Impact & Use Cases

Target Users

Real-World Scenarios

🚀 Getting Started

For Borrowers

For Lenders

📊 Tokenomics & Fees

Platform Fees

Fee Distribution

Interest Rates

🛠️ Development

Prerequisites

Installation

Project Structure

Testing

Deployment

🗺️ Roadmap

Phase 1: MVP (Current)

Phase 2: Beta Launch

Phase 3: Mainnet

Phase 4: Scale

🤝 Contributing

How to Contribute

Development Guidelines

Bug Reports

📄 License

🙏 Acknowledgments

📞 Contact

🏆 Hackathon

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