The Pyada Protocol

DeFi platform letting you pawn NFTS. You will be able to recieve a loan on the Polygon Mumbai Testnet with your NFT taken as collateral. You will be able to get your NFT back when you pay your loan.

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The Pyada Protocol

By Vishnu Sharma and Vibhuv Sharma

Inspiration

Blockchain has many applications, including Decentralized Finance, which is often viewed as the future of finance. However, in order for blockchain to become more mainstream for its financial applications, it must adapt to be able to do everything that can already be done, plus some more. We came up with this idea because one of the most inconvenient things about digital assets (specifically, NFTs) is that you can buy them with cryptocurrencies but you have no guarantee of being able to sell them, and you don't know if you can rent it out to someone either. In traditional finance, we have solved this problem with pawn shops - an almost guaranteed way to sell your assets for a decent price. When we saw this issue, we decided to try to replicate the idea of a pawn shop, but adapt it for blockchain and decentralized finance.

What it does

The Pyada Protocol allows you to collateralize your NFT. With the click of a button, you can give us your NFT and receive a fair amount of cryptocurrency in return. If you are looking to get your NFT back, then you can always repay the loan in return for your NFT. If you were looking to sell your NFT, then you can always just leave it with the protocol. The Pyada Protocol adds a new dimension to decentralized finance.

How we built it

There were lots of components to the site, so it took quite a bit of effort. Firstly, the website itself was built on a nodejs server using the expressjs framework using HTML, CSS, and JavaScript. We used Moralis, Ethers.js, and Web3.js to execute most of the blockchain-related actions, including login and the four transfers that we execute in the main functionality. We also used the Moralis Database to store data on who owns each NFT, how long we have an NFT for, and the important information for each NFT.

Challenges we ran into

The greatest challenge we ran into was executing the transfers. Initially, we had the idea to build several custom smart contracts, but this quickly proved to be not only challenging, but also extremely time consuming. We found a much easier, quicker, and more effective solution which made building smart contracts for this task impractical. However, when we began using this new method we realized that there were inherent qualities with the system that made it impossible for us to transfer a user's NFT back to them and to take their cryptocurrency in return. We spent a long time trying to make this work, but eventually realized that it would not be possible and tried to create smart contracts again. But, when researching, we found another solution (using Ethers.js and Web3.js), which was not too difficult, so we began using this instead. We ran into other difficulties as well, but these were less challenging to solve.

What we learned

This was one of the first times we made a blockchain-related app, so simply making it was a big accomplishment! Before we built this, we had almost no knowledge on how to program the blockchain, and while working on the project, we gained experience with all of the tools blockchain developers need. We learned how to use Web3.js, Ethers.js, and even how to build smart contracts! We gained experience with making high-quality websites (in terms of the front-end) and learned how to use Moralis! This project was very educational for us and helped us learn and grow as developers.

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