Fundora

The problem it solves

1. Project Title Fundora – Tokenized Invoice Financing Platform on Base

2. Executive Summary Problem: Small and Medium Enterprises (SMEs) often face critical cash flow issues due to delayed payments on invoices. Traditional invoice financing solutions are costly, involve manual processing, and are inaccessible to many small businesses.

Solution: Fundora leverages blockchain technology to tokenize invoices as NFTs and provides instant liquidity in USDC through decentralized liquidity pools. By using smart contracts on the Base network, we ensure automation, transparency, and lower fees. SMEs can upload invoices and receive funding instantly, while DeFi investors earn yield by backing real-world assets.

Why Base?: Base offers low-cost and high-throughput transactions, making micro-financing scalable and efficient. Its robust stablecoin ecosystem and strong developer support make it an ideal host for Fundora.

3. Problem Statement SME Cash Flow Gap: Over 60% of SMEs report operational disruptions due to delayed receivables.

Centralized Financing Limitations: Traditional invoice factoring involves high fees (2–5%), manual verification processes, and limited access for smaller businesses.

DeFi Fragmentation: Lack of integration with real-world assets and limited stablecoin utility in practical, business-oriented use cases.

4. Proposed Solution Invoice Tokenization: Mint NFTs for each invoice containing metadata like amount, due date, and credit score.

Liquidity Pools: DeFi investors can deposit USDC into Base-powered pools to provide instant liquidity to SMEs.

Smart Contract Automation: All processes—funding, repayment, yield distribution—are handled by on-chain smart contracts.

User Dashboards:

• SME Dashboard: Upload invoices, track status, and receive funds.

• Investor Dashboard: View pool metrics, invest capital, and monitor returns.

5. Technical Architecture

• Blockchain Layer: Base (Ethereum Layer 2)
• Smart Contracts:
• Written in Solidity
• Handles NFT minting, pool management, and yield logic
• Oracles: Chainlink for:
• Credit score fetching
• Exchange rate feeds
• Storage: IPFS for decentralized storage of invoice documents
• Frontend: Built using React, and Tailwind CSS
• Wallet Integration: MetaMask
• Additional Tools: Pinata Cloud for IPFS pinning

Challenges we ran into

- Learning Curve: New to Base, so understanding its technical stack took time.

- Code Migration: Adapting our existing contracts and frontend to work smoothly on Base required significant changes.

- Testnet Limitations: Difficulty obtaining Sepolia test ETH (minimum 0.05 ETH required) delayed testing.

- Wallet Constraints: Currently limited to MetaMask for wallet interactions.

- Flow Refinement: Had to repeatedly revise user flows for both SMEs and investors for optimal UX.

- Transaction Logic Issues: In Module 2, we are facing challenges in implementing secure and seamless transactions between SMEs and investors via smart contracts.