Kinlend Protocol 🏦

Kinlend Protocol is a peer-to-peer (P2P) lending platform built on Solana using Anchor Framework. It allows interest-free loans while ensuring security through over-collateralization, protecting lenders from defaults.

This decentralized protocol removes intermediaries, providing a trustless and efficient way to borrow and lend USDC.

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🔥 Key Features

✅ Interest-Free Loans – Borrowers can request loans without paying interest.
✅ Over-Collateralization – Borrowers must deposit collateral worth at least 150% of the loan amount.
✅ Decentralized Lending – Any lender can fund loans, and once funded, the repayment timer starts (not immediate repayment).
✅ Service Fee Model – Borrowers pay a 5% service fee, distributed as follows:

• 4% goes to the lender (incentive for lending).
• 1% goes to the protocol (for ecosystem maintenance).
  ✅ Loan Request Cancellation – Borrowers can cancel the request if no lender has funded it.
  ✅ Collateral Liquidation:
• If the borrower fails to repay within the deadline, the lender claims the collateral (10% goes to the protocol).
• If the collateral value drops to 110% of the loan amount, the lender can liquidate it immediately, even if the repayment deadline hasn’t passed.

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🛠️ How It Works

🎯 Loan Lifecycle

1️⃣ Loan Request

• The borrower creates a loan request, specifying:
  • Loan amount (in USDC)
  • Collateral asset
  • Repayment duration (e.g., 30 days)
  • Over-collateralization (≥150%)
• The borrower locks collateral in the contract.

2️⃣ Loan Funding

• Any lender can accept and fund the loan request.
• As soon as a lender funds the request, the repayment timer starts (e.g., if the borrower set 30 days, the countdown begins from that moment).

3️⃣ Borrower Receives Funds

• The borrower receives USDC and must repay it before the deadline.

4️⃣ Repayment

• The borrower must repay the loan amount + 5% service fee.
• Once repaid:
  • Collateral is returned to the borrower.
  • Lender gets back their USDC + 4% fee.
  • 1% goes to the protocol.

5️⃣ Collateral Handling

🔴 If the Borrower Fails to Repay

• The lender can claim the collateral, but 2% of it goes to the protocol.

🔥 Early Liquidation (If Price Drops)

• If the collateral’s value falls to 110% of the loan amount, the lender can liquidate it immediately, even before the repayment deadline. and after liquidation protocol will receives 10% as service fee.

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📂 Documents 📜

📌 Architecture Diagram 🏗️ (documents/Arch_Diagram_Q1_25_Builder_spellsaif.pdf) – Visual overview of how the protocol functions.
📌 User Stories 📖 (documents/User_Stories_Q1_25_Builder_spellsaif.pdf) – Real-world borrower & lender scenarios.

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🚀 Deployment Guide (Solana Devnet)

✅ Prerequisites

Ensure you have the following installed:

• Rust & Cargo (for Solana development):

  curl --proto '=https' --tlsv1.2 -sSf https://sh.rustup.rs | sh 
  

• Anchor Framework:

  cargo install --git https://github.com/coral-xyz/anchor anchor-cli --locked
  

• Fund wallet (Devnet Token):

  solana airdrop 2
  

• Clone Repository:

  git clone https://github.com/spellsaif/kinlend-protocol.git
  cd kinlend-protocol
  

• Configure Solana to use Devnet:

  solana config set --url devnet
  

• Build Program:

  anchor build
  

• Deploy:

  anchor deploy
  

• Verify Deployment:

  cat target/deploy/kinlend-keypair.json
  solana program show <PROGRAM_ID>