DAO DeFi Club - Decentralized Finance (P2P Lending and Borrowing)
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DAO DeFi Club
A Smart Contract
Project–
White Paper
Project
https://daodefi.club / https://dapp.daodefi.club
1. SYSTEM OVERVIEW
Core Philosophy: Decentralized Finance Ecosystem
●
DAO
DeFi Smart Contract: A complete DeFi decentralized finance
ecosystem combining P2P lending & borrowing, compound interest yields, consolidated
borrow management and multi-level referral rewards - revolutionizing traditional
finance through blockchain technology.
●
Peer-to-Peer Lending & Borrowing: Direct lending
and borrowing between users without traditional banking intermediaries
●
DeFi:
Decentralized Finance Ecosystem on block chain technology
●
Multi-Level
Referral System: Six levels of referral income distribution
●
Rank-Based
Borrow Privileges: Progressive benefits
based on user activity and referrals
●
Consolidated
Borrow Management: Multiple
borrowing merged into single monthly
payments
●
Compound Interest Yield ROI: Daily compounding returns
for lenders
●
Multi-Token
Support: Accept various
stable coins (USDT, DAI, etc.)
2. USER ECOSYSTEM
2.1 User Types
Lenders:
●
Primary role is to provide liquidity to the platform
●
Earn daily compound interest
on their contributions
●
Can withdraw principal and ROI after
unlock period
●
Gain borrowing capacity equal
to 5x their total lending
amount
●
Earn referral income from their downline
network
Borrowers:
●
Request borrow based on their rank and borrowing capacity
●
Pay insurance fees upfront
(5% of borrowing amount)
●
Receive funds directly in
DApp wallet when borrowing are funded
●
Make consolidated monthly payments
for all active borrowers
● Receive 20% collateral refund upon refund of borrowed amount completion
2.2 Registration Process
Every user must register with a valid
referrer. This creates
a level structure where:
●
Each user has exactly
one referrer (up
line)
●
Each user can have multiple referrals (downline)
●
The referral level determines income distribution paths
●
Registration is permanent and cannot be changed
●
Registration
and login must be done only through any Web3 DApp browser on the BNB Smart
Chain.
●
Download
Web3 DApp browser from play store / App store
●
Keep
funded from exchange – Required USDT / DAI stable token and BNB token worth of
$ 2 for transaction fees / gas fees.
●
Click
on discover / browser then paste your referral link in to search bar, choose
network as BNB smart chain, connect wallet and click on registration, your
registration will be done successfully.
2.3 List of the Best Supporting DApp Browser Platforms
Popular DApp Browsers
1.
MetaMask - https://play.google.com/store/apps/details?id=io.metamask&hl=en_IN
2.
Binance Wallet - https://play.google.com/store/apps/details?id=com.binance.dev&hl=en_IN
3.
Trust Wallet - https://play.google.com/store/apps/details?id=com.wallet.crypto.trustapp&hl=en_IN
4.
Coinbase Wallet - https://play.google.com/store/apps/details?id=com.coinbase.android&hl=en_IN
5.
TokenPocket Wallet - https://play.google.com/store/apps/details?id=vip.mytokenpocket&hl=en_IN
6.
Bitget Wallet - https://play.google.com/store/apps/details?id=com.bitkeep.wallet&hl=en_IN
7. SafePal Wallet - https://play.google.com/store/apps/details?id=io.safepal.wallet&hl=en_IN
3. FINANCIAL CONSTANTS & SYSTEM RULES
3.1 Core Financial Parameters
|
Parameter |
Value |
Purpose |
|
Lending Contribution |
$10 |
Fixed amount for
each lending action |
|
Minimum Borrow Asset |
$20 |
Smallest borrowable amount |
|
Borrowing Increment |
$10 |
All borrowing
amount must be multiples of
this |
|
Minimum Withdrawal |
$5 |
Smallest withdrawal amount |
|
Withdrawal Fee |
5% |
Fee on all
withdrawals |
|
Late Payment Penalty |
5% |
Monthly penalty on overdue payments |
|
Borrowing Multiplier |
5x |
Capacity = Total
Lent / collateral × 5 |
|
Lender Lock Period |
5 minutes |
Waiting time after
30 days unlock request |
|
Insurance Fee |
5% |
Upfront fee on borrowing requests |
|
Completion Refund |
20% |
Collateral refund on full repayment |
|
Daily ROI Rate |
0.5% |
Daily compound interest for lenders |
●
Month Duration: 30 days for all calculations
●
ROI Calculation: Daily compounding
●
Payment Due Dates: Monthly intervals
●
Late Payment
Grace: None (penalty
applies immediately)
●
Lock Period: 5 minutes after
unlock request
4. RANK SYSTEM DETAILS
4.1 Complete Rank Structure
The platform uses a 5-tier rank system that determines user privileges and limits
|
Rank |
Rank Name |
Requirements of Collateral &
Referral |
Borrow Privileges |
|
Rank 1 |
Unsecured
Borrower |
Minimum $10 to
$200 & o - referrals |
Minimum Borrow: $20, Max
Borrow: $1,000, 36 months, 18% APR |
|
Rank 2 |
Secured
Borrower |
Up to $1000, 2 - referrals |
Borrow Up to: $5,000, 60 months, 18% APR |
|
Rank 3 |
Subprime
Borrower |
Up to $2000, 4 - referrals |
Borrow Up to: $10,000, 84 months, 18% APR |
|
Rank 4 |
Near Prime
Borrower |
Up to $20,000, 6 - referrals |
Borrow Up to: $100,000, 108 months, 18% APR |
|
Rank 5 |
Prime Borrower |
Up to $2,00,000, 8 - referrals |
Borrow Up to: $1,000,000, 132 months, 18% APR |
4.2 Rank Benefits Explanation
Total Lent
Requirement: Cumulative amount the user has lent to
others Direct Referrals Required: Number of people directly
referred who have made at least one lending
/ collateral contribution Max Accept
Amount: Maximum single contribution others can make
to this user's borrowing requests Max Borrow Amount:
Maximum total borrow amount this user can have outstanding Tenure: Maximum repayment period available to this rank Interest Rate: Annual percentage rate for borrow (currently 18% for all ranks)
4.3 Rank Progression Example
User Journey from Rank 1 to Rank 2:
1.
User starts at Rank 1 (can borrow up to $1,000)
2. User refers 2 friends who each lend / collateral $10+ → Meets referral requirement
3. User lends / collateral $220 total across
various borrower requests
→ Meets lending
requirement
4. System automatically upgrades
user to Rank 2
5. User can now borrow up to $5,000 with 60-month
tenure
5. LEVEL INCOME DISTRIBUTION SYSTEM
5.1 Six-Level Referral Structure
|
Level |
Percentage |
Direct Referral Requirement |
Qualification |
|
Level 1 |
20% |
0 |
Always qualified |
|
Level 2 |
10% |
2 |
Need 2+ direct
referral lenders / borrower |
|
Level 3 |
5% |
4 |
Need 4+ direct
referral lenders / borrower |
|
Level 4 |
5% |
6 |
Need 6+ direct
referral lenders / borrower |
|
Level 5 |
5% |
8 |
Need 8+ direct
referral lenders / borrower |
|
Level 6 |
5% |
10 |
Need 10+ direct
referral lenders / borrower |
Total Distribution: 50% of all borrower repayments
5.2 Level Income Distribution Example Scenario:: John makes a $100 borrowed repayment
5.3 Referral
Chain:
●
Level 1: Alice (John's
direct referrer) - Has 5 direct referral
lenders / borrower
●
Level 2: Bob (Alice's
referrer) - Has 3 direct
referral lenders / borrower
●
Level 3: Carol (Bob's
referrer) - Has 2 direct
referral lenders / borrower
●
Level 4: Dave (Carol's
referrer) - Has 1 direct
referral lender / borrower
●
Level 5: Eve (Dave's
referrer) - Has 0 direct
referral lenders borrower
●
Level 6: Frank (Eve's
referrer) - Has 15 direct
referral lenders / borrower
Distribution Calculation:
●
Level 1 (20%): Alice gets $20 ✓ (Qualified - has 5 direct referrals)
●
Level 2 (10%): Bob gets $10 ✓ (Qualified - has 3 direct referrals, needs 2)
●
Level 3 (5%): Carol gets $0 ✗ (Unqualified - has 2 direct referrals, needs 4) → Goes to TOP_USER
●
Level 4 (5%): Dave gets $0 ✗ (Unqualified - has 1 direct referral, needs 6) → Goes to TOP_USER
●
Level 5 (5%): Eve gets $0 ✗ (Unqualified - has 0 direct referrals, needs 8) → Goes to TOP_USER
●
Level 6 (5%): Frank gets $5 ✓ (Qualified - has 15 direct referrals, needs 10)
Final Distribution:
●
Alice receives: $20
●
Bob receives: $10
●
Frank receives: $5
●
TOP_USER receives: $15 (Level
3 + Level 4 + Level 5)
●
Total Level Income: $50
6. MATHEMATICAL FORMULAS
6.1 EMI (Equated Monthly
Installment) Calculation
Formula:
EMI = P × [r × (1 + r)^n] / [(1 + r)^n - 1]
Where:
P = Principal
amount (Borrow amount)
r = Monthly
interest rate (Annual
rate ÷ 12 ÷ 100) n = Number of months (tenure)
Detailed Example:
●
Principal = $1,000
●
Annual Interest Rate = 18%
● Tenure = 36 months
Step-by-step calculation:
1.
Monthly rate (r) = 18 ÷ 12 ÷ 100 =
0.015
2. Calculate (1 + r)^n = (1.015)^36 = 1.7089
3. Calculate numerator = P × r × (1 + r)^n = 1000 × 0.015 × 1.7089 =
25.63
4. Calculate denominator = (1 + r)^n - 1 = 1.7089 - 1 = 0.7089
5.
EMI = 25.63 ÷ 0.7089 =
$36.15
Verification: $36.15 × 36 months
= $1,301.40 total repayment Interest paid: $1,301.40 -
$1,000
= $301.40
6.2 Weighted Interest Rate for Consolidated Borrowing
Formula:
Weighted Rate = (Amount1
× Rate1 + Amount2 × Rate2 + ... + Amount
N ×
Rate N) / Total Amount
Comprehensive Example: User has multiple borrow that need consolidation:
●
Borrow A: $500 at 18% (from when user was Rank 2)
●
Borrow B: $300 at 18% (from when user was Rank 2)
●
New Borrow C: $200 at 18% (current rank is Rank 2
Calculation:
Weighted Rate = (500 × 18 + 300 × 18 + 200 × 18) / (500 + 300 + 200)
Weighted
Rate = (9000 + 5400 + 3600) / 1000
Weighted Rate = 18000 / 1000 = 18%
Note: Since all ranks currently have 18% interest
rate, the weighted
rate will always
be 18%. However, the formula
allows for different rates in the future.
6.3 Maximum Tenure Selection
Formula:
Consolidated Tenure = MAX (Tenure1, Tenure2, ..., Tenure N)
Example:
●
Existing Borrow A: 60 months remaining (Rank 2 tenure)
●
Existing Borrow B: 84 months remaining (Rank 3 tenure)
● New Borrow C: 84 months (Rank 3 tenure)
Result: MAX (60, 84, 84) = 84 months
Rationale: Using maximum
tenure is most favorable to borrower, providing
longest repayment period.
6.4 Consolidated EMI Calculation
Process:
1.
Calculate weighted
interest rate
2. Determine maximum tenure
3. Apply EMI formula to total outstanding principal
Example with above borrowing:
Total Principal
= $500 + $300 + $200 = $1,000
Weighted Rate = 18% annual = 1.5% monthly Maximum Tenure = 84 months
EMI = 1000 × [0.015 × (1.015)^84] / [(1.015)^84 - 1]
EMI = 1000 × [0.015 × 3.4911] / [3.4911 - 1]
EMI = 1000 × 0.0524 / 2.4911
EMI = $21.04
6.5 ROI Compound Interest
Formula
Mathematical Formula:
Final Amount = Principal × (1 + Daily Rate)^ Number of Days ROI = Final Amount - Principal
Where:
Daily Rate = 0.005 (0.5% expressed as decimal)
Comprehensive
Example: Lender has $1,000
total balance (contributions + previous ROI):
Daily ROI Growth:
●
Day 1: $1,000 × (1.005)^1 = $1,005.00 → ROI = $5.00
●
Day 7: $1,000 × (1.005)^7 = $1,035.18 → ROI = $35.18
●
Day 30: $1,000 × (1.005)^30 = $1,161.40 → ROI = $161.40
●
Day 90: $1,000 × (1.005)^90 = $1,566.70 → ROI = $566.70
●
Day 180: $1,000 × (1.005)^180 = $2,454.09 → ROI = $1,454.09
●
Day 365: $1,000 × (1.005)^365 = $6,174.24 → ROI = $5,174.24
Monthly Breakdown (30-day periods):
●
Month 1: Starting $1,000
→ Ending $1,161.40 (16.14% monthly return)
●
Month 2: Starting $1,161.40 → Ending $1,348.62
(16.14% on new balance)
●
Month 3: Starting $1,348.62 → Ending $1,566.70
(16.14% on new balance)
6.6 Payment Distribution Breakdown
Complete Distribution Formula:
For any borrower
payment P: Level Income (50%
total):
- Level 1: P × 0.20
- Level 2: P × 0.10
- Level 3: P × 0.05
- Level 4: P × 0.05
- Level 5: P × 0.05
- Level 6: P × 0.05
Reserve Fund: P × 0.40
Verification: 50% + 10% + 40% = 100% ✓
Detailed Example: Borrower pays $200 EMI
Level Income Distribution ($100 total):
●
Level 1 Referrer: $40 (if qualified)
●
Level 2 Referrer: $20 (if qualified)
●
Level 3 Referrer: $10 (if qualified)
●
Level 4 Referrer: $10 (if qualified)
●
Level 5 Referrer: $10 (if qualified)
●
Level 6 Referrer: $10 (if qualified)
Other Distributions:
● Reserve Fund gets: $80
If referrers are unqualified: Their portion goes to TOP_USER instead
6.7 Late Payment Penalty
Calculation
Formula:
Penalty = Monthly
EMI × 0.05 × Number
of Penalty Periods Where:
Number of Penalty
Periods = ⌊(Days Overdue ÷ 30)⌋ + 1
Days Overdue = Current Date - Due Date
Progressive Penalty Example: Monthly EMI: $100, Due Date: January
1st
Scenario A: Payment
made January 15th (15 days late)
Days Overdue = 15
Penalty Periods
= ⌊(15 ÷ 30)⌋ + 1 = 0 + 1 = 1 Penalty = $100 × 0.05 × 1 = $5
Total Required
= $100 + $5 = $105
Scenario B:
Payment made February
10th (40 days late)
Days Overdue
= 40
Penalty Periods
= ⌊(40 ÷ 30)⌋ + 1 = 1 + 1 = 2 Penalty = $100 × 0.05 × 2 = $10
Total Required = $100 + $10 = $110
Scenario C: Payment
made March 5th (63 days late)
Days Overdue = 63
Penalty Periods
= ⌊(63 ÷ 30)⌋ + 1 = 2 + 1 = 3 Penalty = $100 × 0.05 × 3 = $15
Total Required
= $100 + $15 = $115
6.8 Borrowing Capacity System
Formula:
Total Borrowing Capacity = Total
Amount Lent × 5
Available Capacity = Total Capacity - Current Borrowed
- Pending Requests
Progressive
Example: User's lending journey
and capacity growth:
Stage 1: User lends $100 Total Lent = $100
Borrowing Capacity
= $100 × 5 = $500
Available = $500 - $0 - $0 = $500
Stage 2: User borrows $200 Total Lent = $100
Borrowing Capacity = $500
Current Borrowed = $200
Available = $500 - $200 - $0 = $300
Stage 3: User lends another
$200 (total $300 lent)
Total Lent = $300
Borrowing Capacity
= $300 × 5 = $1,500
Current Borrowed = $200
Available = $1,500 - $200 - $0 = $1,300
Stage 4: User requests another
$500 loan (pending) Total Lent = $300
Borrowing Capacity = $1,500
Current Borrowed = $200 Pending Requests = $500
Available = $1,500 - $200 - $500 = $800
7. OPERATIONAL WORKFLOWS
7.1 Lending Process Flow
Step 1:
Lender Selection
●
User browses pending borrow
requests
●
Reviews borrower's rank and borrow
request details
● Decides contribution amount (multiples of $10)
Step 2:
Contribution Execution
●
System validates contribution amount
and borrower rank
●
Transfers tokens
from lender to contract
●
Records contribution in borrowers borrow request
●
Updates lender's total contributions and yield (ROI) tracking
Step 3: Direct Transfer to Borrower
●
Funds immediately transferred to borrower's wallet
●
Borrowing becomes
active if it's borrower's first
loan
● Multiple borrowing assets get consolidated into single EMI
Step 4: Yield or ROI Generation Begins
●
Lender's total contribution balance
starts earning 0.5% daily yield
●
Yield ROI compounds daily on total balance
●
Updates occur when lender interacts with contract
7.2 Borrowing Process Flow
Step 1: Borrowing Request Creation
●
Borrower specifies borrow amount and token type
●
System validates amount against
rank limits and borrowing
capacity
●
Insurance fee (5% of borrowing
request amount) charged upfront
●
Borrowing request
added to borrower que list
Step 2: Funding Process
●
Lenders contribute $10 increments to borrowing request
●
Each contribution immediately sent to borrower
wallet directly
●
System tracks contributors and borrowed
amounts
●
Creates/updates borrower's consolidated borrowing amount
Step 3: Consolidated borrowing Management
●
Multiple borrowed amounts merged into single monthly
payment
●
Weighted interest rate calculated
●
Maximum tenure applied
●
Single EMI computed for all outstanding amounts
Step 4: Repayment Process
●
Borrower makes monthly payments
on consolidated borrowed
amount
●
Payment distributed through level
income system
●
Borrowed balance reduced by principal portion
●
20% collateral assets refund given upon full completion
of borrowed assets
7.3 Yield ROI Withdrawal Process
Step 1: Unlock Request
●
Lender calls unlock function
●
5-minute waiting period begins
after completion of 30 days’ lock-in-period
●
Yield ROI calculation updated to current
time
Step 2: Withdrawal Execution
●
After 30 days waiting period, lender
can withdraw
●
5% withdrawal fee automatically deducted
●
Fee goes to reserve
fund
●
Net amount transferred to lender
Step 3: Balance Recalculation
●
System updates total withdrawn amount
●
Continuing yield ROI calculation on remaining balance
●
Available balance
= Total Balance
- Total Withdrawn
8. ECONOMIC INCENTIVE STRUCTURE
8.1 Lender Incentives
Immediate Benefits:
●
0.5% daily compound interest
(16.14% monthly effective rate)
●
Borrowing capacity
equal to 5x lending amount
●
Referral income from downline
payments
Long-term Benefits:
●
Compound growth significantly outpaces
traditional investments
●
Building passive income through
referral network
●
Rank progression enables higher
borrowing limits
Risk Mitigation:
●
Reserve fund backing (50% of all repayments)
●
Borrower asset Insurance and insurance fees from borrowers (5% of each borrowing amount)
●
Multiple token support reduces
single-token risk
●
5% withdrawal fees from all users
●
Compounding
of borrowing
●
Automatic
repayment of borrowed amount from level income
8.2 Borrower Incentives
Access Benefits:
●
Quick borrowing approval and funding directly credit to wallet
●
No traditional credit checks
●
No
income proof required
●
No
guarantor required
●
Progressive rank system with higher limits
●
Referral
required for easy of borrowed repayment
Cost Benefits:
●
Competitive 18% annual interest
rate
●
Borrowing tenure
options (up to 132 months)
●
20% collateral refund on borrowed full refund / completion (effective rate reduction)
Flexibility Benefits:
●
Consolidated payment
system
●
Multiple token options
● Direct fund receipt
8.3 Platform Sustainability
Revenue Streams:
●
5% withdrawal fees from all users
●
50% reserve fund accumulation
●
Borrower asset Insurance
●
Insurance
fees from borrowers (5% of each borrowing amount)
●
Compounding
of borrowing
●
Automatic
repayment of borrowed amount from level income
Growth Mechanisms:
●
Referral system encourages user acquisition
●
Rank progression motivates continued
engagement
●
Compounding yield ROI system
encourages lending activity
●
P2P
lending and borrowing on smart contract
●
Assets
transfer instantly and immediately to wallet on verified smart contract
●
Automatic
repayment of borrowed amount from level income
9. RISK MANAGEMENT FRAMEWORK
9.1 Financial Safeguards
Reserve Fund Protection:
●
50% of all EMI repayments goes to reserve
fund
●
Borrower asset Insurance
●
5% insurance fee from every borrowing request
●
5% withdrawal fees from all users
●
Multiple token reserves for liquidity
●
Compounding
of borrowing
●
Automatic
repayment of borrowed amount from level income
Capacity Controls:
●
Borrowing limited
to 5x of collateral amount
●
Rank-based maximum
loan limits
●
Progressive qualification requirements
9.2 System Stability Measures
Payment Enforcement:
●
5% monthly penalties on late payments
●
Consolidated borrowing
system prevents payment
confusion
●
Level income distribution incentivizes network health
Growth Sustainability
●
TOP_USER receives unlimited referral
income from unlimited referrals
●
Automatic rank progression prevents
stagnation
●
Multiple qualification criteria ensure
quality growth
APPENDIX: QUICK
REFERENCE
Financial Constants
●
Lending: $10 per contribution
●
Borrowing: $20 minimum, $10 increments
●
Withdrawal: $5 minimum, 5% fee
●
Yield ROI: 0.5% daily compound
●
Insurance: 5% upfront
●
Completion Refund:
20%
●
Late Penalty: 5% monthly
Rank Requirements
●
Rank 1: $0 lent, 0 referrals
→ $1,000 max borrow
●
Rank 2: $220 lent, 2 referrals
→ $5,000 max borrow
●
Rank 3: $1,020 lent, 4 referrals → $10,000 max borrow
●
Rank 4: $2,020 lent, 6 referrals
→ $100,000 max borrow
●
Rank 5: $20,020 lent, 8 referrals → $1,000,000 max borrow
Level Income Distribution
●
Level 1: 20% (0 referrals required)
●
Level 2: 10% (2 referrals required)
●
Level 3-6: 5% each (4, 6, 8, 10 referrals required)
●
Reserve: 50%
Key Formulas
●
EMI: P × [r(1+r)^n] / [(1+r)^n - 1]
●
ROI: Principal × (1.005)^days - Principal
●
Capacity: Total
Lent × 5
●
Penalty: EMI × 0.05 × periods
9.3 Smart Contract Detail
●
Smart Contract Address - 0x64C38c4DFd643d0A2f64F62555716a68dA9db97b
●
https://bscscan.com/address/0x64c38c4dfd643d0a2f64f62555716a68da9db97b
●
Domain - Registered On 2025 –
07 – 23 T17:49:25Z
●
Expires On 2027- 07- 23
T17:49:25Z (Auto Renew Mode)
●
https://in.godaddy.com/whois/results.aspx?domain=https%3A%2F%2Fdaodefi.club%2F
● Project Report pdf. https://drive.google.com/file/d/1QpFp000UJjsKU5BAqc1gZdwbPrmd5r_i/view
● Logo PNG - https://drive.google.com/file/d/1UMnsxYEnKi_K44A5ZLjtkbeLELS8LFRM/view?usp=sharing
9.4 Social Media Detail
●
Facebook - https://www.facebook.com/people/DAO-DeFi-Lending-and-Borrowing/61578810026088/
●
Medium - https://medium.com/@daodeficlub
●
Twitter / X - https://x.com/DAODEFICLUB
●
Github - https://github.com/DAODEFICLUB
●
YouTube - https://www.youtube.com/@DAODeFi-P2PLendingBorrowing
●
Telegram - https://t.me/daodeficlub / https://web.telegram.org/k/#@daodeficlub
9.5 Registration and Login
Interface
Very very impresive project,this project is a need of so many needy peoples so we have to publish the asme among the needy friends
ReplyDeletePlease send other details of the project that the plan presentation video ,how to login video ,daily zoom meeting link etc.,
ReplyDelete