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TOKENLEND — RWA-Backed SME Lending Platform

Hackathon Information

  • Event: Mantle Hackathon 2026
  • Tracks: RWA/RealFi, DeFi & Composability, AI & Oracles, UX/Demo

Executive Summary

TokenLend is a decentralized, AI-driven lending platform enabling SMEs to unlock liquidity using their real-world assets (RWA) as collateral. Borrowers can access stablecoin loans backed by tokenized assets, while lenders gain secure, verifiable exposure to vetted collateral. TokenLend supports global stablecoins, off-ramp to local fiat, and uses AI underwriting to assess borrower reliability and asset value.

Problem Statement

  • SMEs in emerging markets struggle to access affordable credit
  • Banks require formal collateral and cumbersome documentation
  • Physical assets are underutilized for liquidity
  • Traditional lending lacks transparency, risk scoring, and global reach

Solution

  • Collateralize real-world assets (phones, cars, inventory, machinery)
  • AI underwriting evaluates asset and borrower data to calculate maximum safe Loan-to-Value (LTV)
  • Tokenized assets issued as proof of collateral for tracking and locking
  • Stablecoin lending (USDT/MNT) with optional NGN off-ramp
  • Smart contracts manage collateral lock/unlock and liquidation on default
  • Transparent AI risk scoring for lenders

Key Features

  1. SME Onboarding & KYC
  2. Asset Upload & AI Valuation
  3. Tokenized Collateral (ERC-721)
  4. Loan Request & LTV Calculation
  5. Lending & Interest Management
  6. Repayment Flow & Collateral Unlock
  7. On/Off Ramp Integration

AI Underwriting Details

  • Borrower data: revenue, POS settlements, transaction history
  • Asset data: photos, market APIs, depreciation, serial numbers
  • Output: LTV recommendation and risk score
  • Ensures: safe borrowing limits

Technical Architecture

Frontend

  • Web/Mobile app, asset upload, loan dashboard, repayment tracking

Backend

  • AI valuation engine
  • Borrower/asset database
  • LTV/interest calculator
  • Loan management API

Blockchain/Smart Contract Layer

  • Tokenized collateral
  • Collateral locking/unlocking
  • Loan settlement & liquidation
  • Stablecoin transfers

Integration Layer

  • Stablecoin wallets (USDT/MNT)
  • Optional NGN off-ramp
  • Notifications

Loan Flow

  1. Borrower uploads asset → AI valuation → token generated
  2. Borrower requests loan ≤ LTV limit
  3. Lender funds loan → smart contract locks collateral
  4. Borrower repays principal + interest → collateral token released
  5. Default → collateral token liquidated → proceeds to lender

DEVELOPMENT ROADMAP

Phase 1: Smart Contracts ✅ (IN PROGRESS)

✅ Completed

  • AssetToken.sol - ERC-721 NFT for RWA collateral

    • Asset metadata (type, AI valuation, max LTV)
    • Lock/unlock mechanism
    • Transfer prevention for locked assets
    • Authorized manager pattern

  • LoanManager.sol - Core lending logic

    • Loan creation with asset collateral
    • Loan funding by lenders
    • Repayment with interest calculation
    • Liquidation mechanism
    • Multi-stablecoin support
    • Platform fee system
    • Grace period before liquidation

  • MockStablecoin.sol - Testing token

  • AssetToken.test.js - Comprehensive test suite

    • Minting tests
    • Lock/unlock tests
    • Transfer prevention tests
    • Max loan amount calculation

🔄 In Progress / Next Steps

  • LoanManager Tests - Complete test coverage for loan lifecycle

    • Loan creation tests
    • Funding tests
    • Repayment tests
    • Liquidation tests
    • Edge cases and security tests

  • AI Oracle Integration (if needed on-chain)

    • Chainlink oracle for asset valuation
    • Price feeds for stablecoins

  • Security Audit Prep

    • Reentrancy protection review
    • Access control review
    • Edge case handling

  • Deployment Scripts

    • Hardhat deployment scripts
    • Mantle testnet deployment
    • Contract verification

Phase 2: AI Valuation Engine

  • Asset classification model
  • Price estimation model
  • Risk scoring model
  • API endpoints for valuation
  • Integration with smart contracts

Phase 3: Backend API

  • User authentication & KYC
  • Asset upload and storage (IPFS)
  • AI valuation service integration
  • Loan management endpoints
  • Notification service
  • Off-ramp integration (NGN)

Phase 4: Frontend Application

  • Landing page
  • User registration/login
  • Asset upload flow
  • Loan request interface
  • Lender dashboard
  • Borrower dashboard
  • Repayment tracking
  • Wallet integration (MetaMask, etc.)

Phase 5: Testing & Deployment

  • Integration testing
  • User acceptance testing
  • Security audit
  • Mantle mainnet deployment
  • Demo preparation

CURRENT SMART CONTRACT ARCHITECTURE

AssetToken.sol

Type: ERC-721 NFT Contract Purpose: Tokenize real-world assets as collateral

Key Functions:

  • mintAsset() - Create NFT for asset with AI valuation
  • lockAsset() - Lock asset when loan is created
  • unlockAsset() - Unlock asset when loan is repaid
  • getMaxLoanAmount() - Calculate max borrowable amount based on LTV
  • setAuthorizedManager() - Authorize LoanManager contract

Asset Struct:

struct Asset {
    string assetType;        // "phone", "car", "machinery"
    uint256 aiValuation;     // USD value (scaled by 1e18)
    uint256 maxLTV;          // Max LTV ratio (basis points)
    uint256 createdAt;       // Timestamp
    address borrower;        // Asset owner
    bool isLocked;           // Collateral status
    uint256 loanId;          // Associated loan ID
}

LoanManager.sol

Type: Loan Management Contract Purpose: Handle loan lifecycle from creation to repayment/liquidation

Key Functions:

  • createLoan() - Borrower creates loan request
  • fundLoan() - Lender funds the loan
  • makeRepayment() - Borrower makes payment
  • liquidateLoan() - Liquidate defaulted loan
  • addSupportedStablecoin() - Add accepted stablecoins

Loan Struct:

struct Loan {
    uint256 loanId;
    address borrower;
    address lender;
    uint256 assetTokenId;    // Collateral NFT
    uint256 principal;       // Loan amount
    uint256 interestRate;    // Annual rate (basis points)
    uint256 duration;        // Loan term (seconds)
    uint256 startTime;       // When funded
    uint256 totalRepayment;  // Principal + interest
    uint256 amountRepaid;    // Paid so far
    LoanStatus status;       // Active/Repaid/Liquidated
    address stablecoin;      // USDT/MNT/etc.
}

Loan Statuses:

  • Active - Loan is ongoing
  • Repaid - Fully paid back
  • Liquidated - Collateral seized
  • Defaulted - Past due (unused currently)

TECHNICAL DECISIONS

Stablecoin Support

  • Primary: USDT, USDC, MNT (Mantle native)
  • Flexible multi-stablecoin architecture
  • MockStablecoin for testing only

Interest Calculation

  • Simple interest model: (principal * rate * duration) / (10000 * 365 days)
  • Rate in basis points (1000 = 10%)
  • Pro-rata for custom durations

Liquidation

  • 7-day grace period after loan expiry
  • Lender receives collateral NFT
  • No partial liquidation (full seizure)

Platform Economics

  • Platform fee: up to 10% (configurable)
  • Fee deducted from principal at funding
  • Fee goes to designated recipient

Security Features

  • ReentrancyGuard on all financial functions
  • Ownable for admin functions
  • SafeERC20 for token transfers
  • Transfer prevention on locked assets

NEXT IMMEDIATE TASKS

Testing

  1. Write comprehensive LoanManager tests
  2. Test full loan lifecycle end-to-end
  3. Test liquidation scenarios
  4. Test multi-stablecoin support

Contract Improvements (if needed)

  1. Consider partial repayments
  2. Add loan extension mechanism
  3. Add early repayment discount
  4. Add borrower/lender reputation system

Deployment Preparation

  1. Write deployment scripts
  2. Configure for Mantle testnet
  3. Verify contracts on block explorer
  4. Document deployed addresses

RESOURCES & REFERENCES

Mantle Network

Stablecoins on Mantle

  • USDT: [To be added]
  • USDC: [To be added]
  • MNT: Native token

Development Stack

  • Hardhat
  • OpenZeppelin Contracts
  • Ethers.js
  • Chai (testing)