Introduction
Name of the project: ConfluxNexus (Lending and Borrowing Platform)
Problem statement in the existing Conflux ecosystem:
The Conflux ecosystem, despite its robust infrastructure (high throughput, low fees, EVM compatibility), still has a significant opportunity to establish a highly integrated, secure, and user-centric collateralized lending and borrowing platform. While a basic lending protocol like Goledo Finance exists, there is an unmet need for a solution that comprehensively addresses:
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Optimized Liquidity & Financial Inclusion: A platform that aggressively drives asset liquidity and broadens access to financial services for underbanked populations within the Conflux reach.
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Automated & Efficient Processes: A system that deeply automates collateralized lending and borrowing functions to reduce operational costs and minimize errors beyond current capabilities.
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Innovative Product Offerings: The potential to introduce unique financial products such as diverse collateralized token lending options to expand revenue streams and user utility.
Proposed Solution: ConfluxNexus proposes the development of a comprehensive collateralized lending and borrowing platform designed specifically for the Conflux Network. Leveraging Conflux’s inherent decentralization, security, and smart contract capabilities within its EVM-compatible eSpace, ConfluxNexus will offer secure, efficient, and low-cost financial services. By prioritizing enhanced liquidity, fostering financial inclusion, automating processes, and enabling innovative financial products
Alignment of the project with the Conflux Network:
ConfluxNexus is fundamentally aligned with Conflux’s strategic objective to expand its decentralized economy and position itself as a leading Layer 1 blockchain for advanced DeFi. Our project directly utilizes Conflux’s core strengths:
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EVM Compatibility (eSpace): ConfluxNexus is built on eSpace, ensuring seamless integration for developers already familiar with Solidity and EVM tooling, thereby lowering the barrier to entry for new DeFi projects on Conflux.
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High Throughput & Low Fees: The platform’s automated processes and frequent transaction requirements will fully benefit from Conflux’s exceptional transaction speed and minimal gas fees, making collateralized lending/borrowing highly efficient and accessible.
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Security & Decentralization: ConfluxNexus will rely on Conflux’s robust security features and decentralized nature to ensure asset safety and transparent operations.
Benefit to the Conflux Ecosystem:
ConfluxNexus will serve as a powerful demonstration of Conflux’s capabilities for complex financial dApps. Its open-source nature, comprehensive set of collateralized lending contracts, and potential for integration (e.g., providing a lending layer for other DeFi products) will encourage developers to build on Conflux, knowing they have a robust and feature-rich money market to interact with.
Economic benefit: How this product will increase assets and transactions on-chain: ConfluxNexus will substantially boost economic activity on Conflux by:
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Increased TVL: It will incentivize users to lock their assets as collateral for loans, directly increasing the Total Value Locked (TVL) within the Conflux ecosystem.
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Higher Transaction Volume: Automated collateralized lending/borrowing processes, repayments, will generate a higher volume of on-chain transactions, contributing to network fees and overall activity.
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New Revenue Streams: The platform will introduce new revenue streams through optimized .
transaction fees, interest income from lending, and staking rewards, all contributing to the Conflux economy.
Demonstrate a competitive edge that differentiates it from other projects: While Conflux has existing lending solutions (e.g., Goledo Finance), ConfluxNexus differentiates itself by:
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Comprehensive Innovation: A dedicated focus on introducing unique financial products diverse collateralized token lending, pushing the boundaries of DeFi on Conflux.
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Extensive Automation: Employs smart contracts to deeply automate collateralized lending/borrowing processes, aiming for unparalleled efficiency and reduction of manual errors.
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Dedicated Resource Allocation: A substantial team allocation ensures focused development and robust support, fostering continuous improvement and deeper integration within the Conflux ecosystem.
Conflux eSpace grant recipient wallet address: cfx:aanhh2wwa654tnhux83715f2wm2p84788e0f2v87ve
Technical Introduction
The Conflux ecosystem currently seeks a highly efficient, automated, and inclusive collateralized lending and borrowing platform. There’s a clear demand for more advanced automation and a broader drive towards financial inclusion within the DeFi space on Conflux.
The primary existing lending solution on Conflux is Goledo Finance. ConfluxNexus aims to differentiate itself by focusing on deeper automation, comprehensive innovative product offeringsand a stronger emphasis on financial inclusion.
Feasibility Study: The development of ConfluxNexus is highly feasible due to:
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Conflux eSpace’s EVM Compatibility: Provides a stable and robust environment for deploying complex Solidity smart contracts, allowing us to build sophisticated financial logic.
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Our Expertise: Our team’s extensive experience in developing and auditing DeFi protocols, building custom blockchain solutions, and implementing automated financial services directly supports the successful execution of ConfluxNexus.
Purpose of the system: The purpose of ConfluxNexus is to establish a secure, automated, and inclusive decentralized collateralized lending and borrowing ecosystem on the Conflux Network. It aims to empower users with seamless access to liquidity, introduce innovative financial products and drive adoption by making DeFi services more accessible and efficient for a global audience.
Scope of the system: The initial scope of ConfluxNexus will encompass:
- Core Lending/Borrowing Functionality: Enabling users to lend assets into various liquidity pools and borrow against their digital assets.
- Collateral Management: Secure smart contracts for tracking and managing collateralized positions.
- Dynamic Interest Rate Mechanisms: Algorithmic calculation of lending and borrowing rates based on supply and demand.
- Admin Panel: Comprehensive tools for the platform administrators to specify fee rates, add new asset pools, and monitor overall pool activity.
- User Interface: Intuitive web application for users to manage their positions, view analytics, and perform lending/borrowing actions.
- Support for Multiple Assets: Capability to integrate and support a diverse range of cryptocurrencies and tokens for collateral and lending/borrowing.
- Objectives and success criteria of the project:
- Develop ConfluxNexus: Successfully design, develop, and deploy a fully functional collateralized lending and borrowing platform on Conflux Mainnet.(Success: All core smart contracts deployed and verified, user and admin interfaces fully operational).
- Enhance Liquidity & Inclusion: Significantly increase asset liquidity and promote financial inclusion within the Conflux ecosystem. (Success: Achieve target TVL projections, demonstrate measurable growth in unique active users from diverse backgrounds).
- Automate Processes: Implement highly automated collateralized lending/borrowing processes. (Success: Automated collateral management, interest calculation, and other core functions).
- Ensure Security & Efficiency: Build a highly secure and efficient platform leveraging Conflux’s capabilities. (Success: Completion of comprehensive security audits with no critical vulnerabilities, consistent high transaction throughput and low gas fees maintained).
- Drive Ecosystem Growth: Attract more users and developers to the Conflux Network. (Success: ConfluxNexus becomes a recognized primitive, fostering new integrations and dApps).
Technical Proposal
1. Functional Overview of ConfluxNexus
ConfluxNexus will function as a decentralized and automated collateralized lending and borrowing platform on Conflux eSpace. It aims to provide a robust and secure environment for users to manage their digital assets, access liquidity, and benefit from innovative financial products, including decentralized credit scoring.
- Core Aspects and Elements to Uphold Functionality:
- Lending Contract: Manages the pooling of assets from lenders. It tracks individual deposits, calculates and distributes interest earnings, and handles asset withdrawals.
- Borrowing Contract: Governs the process by which users can borrow assets against collateral. It verifies collateral, calculates loan-to-value (LTV) ratios, and processes loan disbursements and repayments.
- Collateral Management Contract: Securely locks and manages deposited collateral. This contract actively monitors the value of collateral against the outstanding loan and is responsible for triggering liquidation processes if health factors fall below thresholds.
- Interest Rate Contract: Implements an algorithmic model to dynamically adjust both lending (supply) and borrowing (demand) interest rates based on the utilization rate of each asset pool, ensuring market efficiency.
- Liquidation Contract: Executes automated liquidations of undercollateralized loans. This ensures the protocol’s solvency by selling off a portion of the collateral to cover the outstanding debt.
- Asset Pools: Smart contract-controlled liquidity pools for each supported cryptocurrency and token, enabling seamless, permissionless lending and borrowing.
- User Interface (UI): A comprehensive web-based dApp (detailed below) providing all functionalities for users to interact with the platform’s smart contracts.
- Admin Panel: A secure interface providing administrative controls for managing core platform parameters, such as specifying fee rates, adding new asset pools, and monitoring real-time pool activity.
- Oracle Integration: Integration with reliable decentralized oracle networks (e.g., Chainlink, DIA) to provide accurate and robust real-time price feeds for all supported assets, crucial for collateral valuation and liquidation decisions.
*2. Legal/Licensing Aspects :ConfluxNexus’s smart contracts will be open-source, released under a permissive license (e.g., MIT License), promoting transparency, community auditing, and contributing to the open-source ethos of the Conflux ecosystem.
3. Non-Functional Overview
- Usability:
- Intuitive Interface: Designed with a clean, modern, and highly intuitive user interface to ensure ease of navigation and management of lending and borrowing activities for all user levels.
- Seamless Wallet Integration: Provides straightforward connection with major Conflux eSpace compatible wallets (e.g., MetaMask, Fluent Wallet) for a frictionless user experience.
- Clear Data Presentation: All relevant information, including active pools, current requests, user positions, interest rates, and analytics, will be presented in an easily digestible format.
- Reliability:
- Advanced Security: Leverages Conflux’s robust security features, implements multi-signature wallets for critical operations, and will undergo comprehensive smart contract audits by reputable security firms to protect user assets.
- Automated Processes: Core lending and borrowing functions are fully automated via smart contracts, reducing the risk of human error and enhancing the reliability of the protocol.
- Robust Oracles: Utilizes decentralized oracle networks to ensure the reliability and accuracy of price feeds, crucial for the stability of the collateral management and liquidation systems.
- Performance:
- High Throughput: Designed to fully leverage Conflux’s high transaction processing capabilities, ensuring rapid confirmations for all lending and borrowing operations.
- Low Fees: Smart contracts will be meticulously optimized for gas efficiency to minimize transaction costs for users on Conflux eSpace, enhancing accessibility.
- Scalability: The platform’s architecture is built to support a growing number of users, assets, and transactions without compromising performance.
- Implementation:
- Smart Contract Development: Core logic implemented in Solidity, adhering to established ERC standards (e.g., ERC-20) and best practices for secure contract development.
- Frontend Development: Utilizes modern web frameworks (e.g., React/Next.js) to create a responsive, dynamic, and visually appealing user interface.
- Backend Services: Limited, decentralized backend services (e.g., for data indexing or notification services) will be used to support the dApp, ensuring minimal reliance on centralized components.
- User interface:
- Home Page: Provides an overview of active pools, current lending/borrowing requests, and key platform analytics. Users can easily initiate lending or borrowing transactions.
- My Positions Page: Offers a detailed view of a user’s active collateralized lending/borrowing positions, accumulated interest, APR, and options for partial or full position closure.
- Admin Panel: A secure, role-based interface for managing asset pools, setting fee rates, and monitoring overall platform health and activity.
Total Budget
Grant Size: USDT $45,000
- Justification: This grant request of $45,000 USDT is critical for the comprehensive development, rigorous security auditing, and successful initial launch of ConfluxNexus. This funding will enable us to build a leading collateralized lending and borrowing platform on Conflux that fulfills its promise of enhanced liquidity, financial inclusion, and automated processes. The breakdown is as follows:
- Kick Off & Initial Design (Approx. $10,000 USDT): This initial allocation covers the project’s foundational phase, including detailed requirement finalization, comprehensive UI/UX design (as evidenced by the Figma prototype), and the initial architectural setup. This ensures a strong, user-centric design from the outset.
- Smart Contract Development (Approx. $10,000 USDT): Dedicated to the development and implementation of all core smart contracts: Lending, Borrowing, Collateral Management, Interest Rate calculation, Liquidation, and Flash Loan modules. This is the most critical component, ensuring security and efficiency on Conflux eSpace.
- User & Admin Panel Development (Approx. $10,000 USDT): Covers the end-to-end development and integration of both the intuitive user-facing application and the administrative dashboard, ensuring seamless interaction with the deployed smart contracts and comprehensive platform management.
- Testing & Optimization (Approx. $1,000 USDT): Allocated for extensive internal testing (unit, integration, UAT), performance optimization, and preparation for external security audits. This ensures a bug-free and highly efficient platform.
- UAT, Production Deployment & Audit (Approx. $5,000 USDT): This final phase includes rigorous User Acceptance Testing, the full mainnet deployment of ConfluxNexus on Conflux, securing independent smart contract audits, and initiating initial marketing and user adoption campaigns.
Development Roadmap
Timeline and milestones:
The development of ConfluxNexus on the Conflux Network is projected to span approximately 3-4 months, structured into the following key phases and associated funding requests:
Milestone 0: Kick Off & Design Phase (Advance - Approx. 1-2 Weeks)
Deliverable: Project initiation documentation, finalized detailed requirements, comprehensive UI/UX designs (including Figma prototype reference), and initial architectural outline.
Milestone 1: Core Smart Contract Development (Approx. 3-4 Weeks)
Deliverable: Core smart contracts (Lending, Borrowing, Collateral Management, Interest Rate, Liquidation, Flash Loans) developed, coded, and unit-tested on Conflux Testnet.
Milestone 2: User & Admin Panel Development (Approx. 1.5 Months)
Deliverable: Fully integrated and functional user panel (Home, My Positions pages) and admin panel developed and deployed on Conflux Testnet for initial testing.
Milestone 3: Testing & Optimization (Approx. 2-3 Weeks)
Deliverable: Comprehensive internal testing completed across all modules. Performance optimization applied. All identified bugs addressed, and platform prepared for external audits.
Milestone 4: UAT, Production Deployment & Audit (Approx. 1-2 Weeks)
Deliverable: Successful completion of User Acceptance Testing (UAT). ConfluxNexus platform fully deployed on Conflux Mainnet. Official launch announcement and initial marketing efforts. Completion of independent smart contract audit.
Team
- Nishant Mitra - Tech Lead
A blockchain expert and IIT Kharagpur alumnus, Nishant architects cutting-edge decentralized solutions and ensures robust technical execution. - Prashant Hooda – Product Manager
Prashant drives product innovation, ensuring user-centric solutions that align with evolving market needs and technological advancements.
*Ankit Bhatia- Developer
Ankit is expertise in Solidity, smart contract security, advanced DeFi protocols and dApp development on EVM-compatible chains.