BitLoan

Inspiration

We were inspired by the need for accessible microfinance solutions in the US and the global push for Bitcoin-based financial systems. Many people around the world are underbanked or unbanked, yet they have mobile devices and access to Bitcoin. We saw an opportunity to create a decentralized, fast, and low-cost lending platform powered by the Lightning Network and Stacks smart contracts, secured by Bitcoin.

What it does

BitLoan is a decentralized microloan app that allows users to:

Request or offer Bitcoin microloans instantly.
Use Lightning Network for fast, low-fee BTC transfers.
Secure and manage loan terms using Stacks Clarity smart contracts (development)
Optionally use collateral or a decentralized reputation system to qualify for loans. (development)
Track repayment schedules and interest on-chain. (development)

It bridges off-chain Lightning transactions enabling real-world financial interactions that are trust-minimized and efficient.

How we built it

We built BitLoan using:

Voltage, Mutiny Wallet, and LNBits: Tested Lender to Borrower transactions
Streamlit: User interface anyone can use

In Development

Stacks: Clarity smart contracts will manage loan logic, collateral, interest, and repayments.
Bitcoin Lightning Network: Handles real-time BTC transfers for loans and repayments.
Node.js/Express backend: Manages Lightning invoices and verifies payments.

Future Challenges

Bridging the off-chain Lightning world with on-chain Clarity logic required careful planning and custom oracle development.
Stacks uses Clarity, a non-Turing complete language with unique syntax, which required a learning curve.
Managing the security of repayments and potential loan defaults in a decentralized way without traditional enforcement mechanisms.
Integrating multiple wallet technologies and ensuring a seamless UX across Bitcoin and Stacks ecosystems.

Accomplishments that we're proud of

Successfully transacted Bitcoin Lightning test payments via Voltage, Mutiny Wallet, LNBits, and Streamlit
Designed a microfinance system with real use cases for the unbanked.
Worked as a team to integrate Bitcoin payments into a secure loan management platform.

What we learned

Practical usage of the Lightning Network and how micro-payments can revolutionize financial access.
New appreciation for DeFi on Bitcoin and how it can be made inclusive, fast, and secure.

What's next for BitLoan

Launch a testnet version and onboard real users with small microloans.
Integrate decentralized identity and reputation systems to improve loan eligibility without relying solely on collateral.
Use multi-sig and escrow mechanisms to add more safety for lenders.
Explore AI-powered trust scoring for borrowers.
Expand to mobile-first interfaces.
Eventually, roll out on mainnet with a governance layer for community involvement.

Built With

clarity
express.js
javascript
lnbits
mutinywallet
node.js
python
stacks
streamlit
voltage

Submitted to

Created by

I created the team on Discord and helped manage things. I came up with the name for the app, BitLoan. I helped with the presentation, readMe file, figma board, and devpost submission questions.

Laurent Cousineau
My Discord is #Megaman7010. I spearheaded all aspects of development from infrastructure setup to final delivery, including demo video. This included configuring our core Bitcoin stack (Voltage nodes, Mutiny Wallet integration, and LNbits deployment via Docker containers), architecting the Streamlit application, and ensuring seamless system interoperability. Beyond technical execution, I drove project coordination by scheduling meetings, delegating tasks, and quality-checking all deliverables including presentations. Throughout the process, I served as the primary technical resource - troubleshooting issues and answering teammate questions.

Ridwan Alam
My contributions to BitLoan involved the initial conceptualization, helping to shape the core ideas and features. I participated in brainstorming sessions, contributing ideas to the platform's development. By establishing distinct user flows and creating user-friendly page structures, I then concentrated on converting these concepts into a satisfying user experience.

Oluwafemi Bakre
I contributed to the research phase by analyzing key questions critical to the development of the Bitloan platform. My research covered areas such as KYC requirements, optimal microloan sizes, interest rate strategies, repayment period structures, penalty systems, wallet integration methods, and Bitcoin volatility risk management. Additionally, I collaborated on building the project’s presentation materials, structuring the slides to clearly communicate our research findings, product strategy, and key design decisions.

Dhanaraj K S
Aiyaan Mahajan
Michael Le