<LENDNEST: YOUR PERSONALIZED

LENDING UNIVERSE>
PROJECT CHARTER
Project Area: IT Infrastructure

Abstract
The aim of this project is to develop a decentralized lending and borrowing platform that allows
users to open a market. The users will be able to set NFTs and tokens as collateral. The
project will set time-based liquidation as opposed to the price-based liquidation used currently.
The project also aims to reduce counter party risk in the duration of lending and borrowing.

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Document History

Date Document Name Document Version Author

6-Sept-2023 Proposal Presentation 1.0 Muhammad Ahmed, Nabeel
Javed, Zaryab Hassan
19-Sept-2023 Project Charter 1.1 Muhammad Ahmed, Nabeel
Javed, Zaryab Hassan

Approvals

Approval Date Approved Version Approver Role Approver

6-Sept-2023 1.0 Panel Panel

Authors

Name Roll No. Section

Muhammad Ahmed 20I-1855 SE-P
Nabeel Javed 20I-2420 SE-P
Zaryab Hassan 20I-2487 SE-p

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Table of Contents

Contents
1. PROBLEM STATEMENT .......................................................................................................................................3
2. GOALS .................................................................................................................................................................3
3. BUSINESS CASE ...................................................................................................................................................3
3.1. Key Reasons ....................................................................................................................................................3
3.2. Consequences.................................................................................................................................................3
3.3. Factors ............................................................................................................................................................3
4. SCOPE AND CONSTRAINTS .................................................................................................................................4
4.1. Scope ..............................................................................................................................................................4
4.2. Constraints......................................................................................................................................................4
5. RETURN...............................................................................................................................................................4
6. DELIVERABLES.....................................................................................................................................................5
7. COMMUNICATION PLAN ....................................................................................................................................6
8. PROJECT TEAM ORGANIZATION .........................................................................................................................6
8.1. Roles & Responsibilities..............................................................................................................................6
8.2. Stakeholders ...............................................................................................................................................7
8.2.1. Identify your Stakeholders .....................................................................................................................7
8.2.2. Prioritize your Stakeholders ...................................................................................................................7
8.2.3. Understanding your Key Stakeholders ...................................................................................................7
8.2.4. Stakeholders Table .................................................................................................................................8
9. APPENDIX............................................................................................................................................................8

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1. PROBLEM STATEMENT

LendNest recognizes the complexity of creating smart contracts for blockchain-based lending,
limited collateral choices, weak credit scoring, inefficient market creation, and inadequate
risk mitigation strategies as critical challenges in the current lending landscape. In response,
LendNest aims to simplify the lending process, diversify collateral options, enhance on-chain
credit scoring, streamline market creation, and implement effective risk management. By
addressing these issues, LendNest seeks to establish a secure, efficient, and inclusive lending
platform within the blockchain ecosystem.

2. GOALS

 A unique platform that would allow users to create their own market by only filling form.
 A web3 lending/borrowing application that does not encompass price-based liquidation.
 Reducing counter party risk of fraudulent transactions.

3. BUSINESS CASE

3.1. KEY REASONS

 Tap into the De-Fi market by allowing to set any token/NFT as collateral.
 Increase our customer base by discouraging price-based liquidation.
 Introducing a relatively innovative concept of time-based liquidation.
 Capturing the lending/borrowing market as a new concept web3 application.

3.2. CONSEQUENCES

 Multiple web3 applications for different lending/borrowing markets.

 Cost and time expensive web3 application creation for business owners.
 When setting NFT and tokens as collateral different websites will need to be used.

3.3. FACTORS

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  Innovation in De-Fi.
 Lending/borrowing market creation on one web3 application.

4. SCOPE AND CONSTRAINTS

4.1. SCOPE

 Using any crypto wallet as sign-in for LendNest.

 Allowing lenders to accept borrower's loan requests.
 Allowing lenders to pre-commit capital for instant loans.
 Allowing borrowers to set ERC20 tokens as collateral.
 Allowing borrowers to set ERC721 (NFTs) as collateral.
 Allowing borrowers to cancel loan requests if not accepted by lenders.
 Allowing anyone to create a market.
 Paying fees to market owners on successful trades.

 Allowing anyone to liquidate a loan after the loan period has expired.

 Allowing liquidators to repay lenders and keep borrower collateral.

 Allowing borrowers to repay the full loan amount before expiration.

 Allowing borrowers to repay the minimum loan amount at any time.
 Allowing borrowers to repay a custom amount (more than the minimum) at any time.

4.2. CONSTRAINTS

 Duplicate accounts of same user.

o As crypto wallet is used to connect wallets in LendNest, this duplication of accounts is a
functionality of blockchain, which is out of this project’s scope.
 Presenting the current market value of token/NFT being set as collateral.
o As LendNest is a web3 application based on lending/borrowing, the current stats of any and all
assets are not a part of this project.

5. RETURN

 Expanded Collateral Choices

o By offering a wide range of collateral options, LendNest enables more users to
participate in lending, increasing inclusivity.

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  Efficient Market Creation
o The platform's tools for creating lending markets make it easier for users to participate,
fostering market growth.
 Transparent Fee Structures
o Transparent fee structures on LendNest reduce uncertainty and enhance trust among
borrowers and lenders.
 Effective Risk Mitigation
o Robust risk mitigation strategies, including efficient liquidation mechanisms, protect
both lenders and borrowers, improving the overall stability of the lending ecosystem.
 Secure and Tamper-Resistant Transactions
o Leveraging blockchain's security features, LendNest ensures the integrity and
immutability of transaction data.
 Cost Savings
o By eliminating intermediaries, LendNest potentially reduces transaction costs for
participants.
 Competitive Advantage
o As an early mover in this innovative space, the project has the chance to gain a
competitive edge in the evolving blockchain lending market.
 Contribution to Blockchain Ecosystem
o LendNest's success contributes to the broader development and adoption of blockchain
technology in the financial sector.

6. DELIVERABLES

# Project Phase Milestones, Planning Deliverables Target Date Approver

1 Proposal Presentation, Scope Definition, Business 5-Sept-2023 Panel
Case
2 Documentation Project Charter, SRSD, Design and 19-Oct-2023
Architecture
3 Implementaion-I Market Creation, Lending Module 19-Oct-2023
4 Implementaion-II Borrowing, Liquidation Module 20-Dec-2023
5 Implementaion-III Repayment Module 20-Feb-2024
6 Testing Auditing smart contracts 28-Feb-2024
7 Kickoff Deploying, Selling product, Job Fair 03-Mar-2024

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7. COMMUNICATION PLAN

What To Whom When Who How Where

Project Team Project Weekly (every Scribe Approving Co-Supervisor
Meetings developers, Co- Thursday current work, room
Supervisor 10pm) assigning next
tasks

Meeting Project Weekly Scribe Via email Word file on

Minutes developers (Thursday at 5 shared drive
pm)
Developers Project Daily (Monday- Scribe Via group chat University
Meeting developers Thursday) library

Documentation Project Daily (Monday- Scribe Via email Word file on

update developers, Thursday) shared drive
Supervisor, Co-
Supervisor
Project Project TBD (Bi- Organization Via email TBD (Room
milestone developers, monthly) (University) assigned by
review Supervisor, Co- organization)
Supervisor, panel

8. PROJECT TEAM ORGANIZATION

8.1. Roles & Responsibilities

Role Name Name General Responsibilities

Supervisor Sir Asif Muhammad Assigning task, approving tasks
Co-Supervisor Dr. Muhammad Asim Assigning task, approving tasks
Project developer Muhammad Ahmed Frontend development, backend development, testing,
(Team Lead) scribe
Project developer Nabeel Javed Frontend development, backend development, testing
Project developer Zaryab Hassan Frontend development, backend development, testing
Panel Dr. Muhammad Asim Approving working modules, project and documentation
Ms. Laiba Imran

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 Dr. Zainab Abaid
Dr. Uzair Iqbal
Ms. Noor ul Ain
Ms. Maryam Shahbaz
Ms. Mehreen Javaid
Mr. Khwaja Bilal Hassan
Mr. Usama Bin Imran
Ms. Javeria Zia
Mr. Shoaib Mehmood
Mr. Jawab Hassan

8.2. Stakeholders

8.2.1. Identify your Stakeholders

Identifying stakeholders is the foundational step in any project. In this context, stakeholders are
individuals or groups with a vested interest in the outcome of your project. For my FYP, I have accurately
identified various stakeholders. “Supervisor” plays a crucial role in guiding your project, approving tasks, and
overseeing its development. The “Co-Supervisor” is equally important, particularly in guiding your choice of
technology stack and contributing to task management. “Project Developers” are the hands-on team members
responsible for the documentation, development, and rigorous testing of the project's modules. The “Panel”
serves as a critical reviewing body, providing approval for working modules and serving as proxy end-users who
evaluate your project's functionality and performance. Lastly, the “Lender”, “Market Owner”, and “Borrower”
are the ultimate end-users of your project, as it aims to provide solutions to their specific problems within the
lending and market creation processes.

8.2.2. Prioritize your Stakeholders

While all stakeholders are important, prioritizing them can help you allocate resources and attention
effectively. In the project, “Supervisor” and “Co-Supervisor” should be among your top priorities, as they provide
the necessary guidance and approvals. “Project Developers” also hold a high priority since they are responsible
for the actual development and documentation of the project. The “Panel” should be another priority since they
play a significant role in evaluating your project's progress. The “Lender”, “Market Owner”, and “Borrower” are
also high-priority stakeholders since the success of your project hinges on meeting their needs and expectations.

8.2.3. Understanding your Key Stakeholders

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 Understanding the key stakeholders is vital for effective communication and collaboration throughout
the project. For “Supervisor” and “Co-Supervisor”, it's crucial to comprehend their expectations, preferred
communication channels, and any specific guidance they provide regarding project objectives and technology
choices. The “Project Developers” should have a clear understanding of their roles and responsibilities in
documentation, development, and testing. The “Panel” requires the understanding of the criteria they'll use to
evaluate your project's success and how best to meet their expectations. Lastly, gaining an in-depth
understanding of the “Lender”, “Market Owner”, and “Borrower” is essential for tailoring your project to
address their specific problems effectively, as their satisfaction is key to the project's overall success.

8.2.4. Stakeholders Table

Title / Role Reason

Supervisor Approval of tasks, leading development of tasks
Co-Supervisor Guidance on technology stack, leading development of tasks
Project developers Documentation, development and testing of modules
Panel Approval of working modules, proxy end-users
Lender Solution to their problem, end-user
Market owner Solution to their problem, end-user
Borrower Solution to their problem, end-user

9. APPENDIX

Term Explanation
NFTs Non-Fungible Tokens (digital art)
Tokens Cryptocurrency (Bitcoin)
Blockchain Decentralized and distributed digital ledger technology
End-user People who will use this software, people whose problem
is being solved
DeFi Decentralized Finance

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