How It Works
LumbungFi is a decentralized protocol on Base Sepolia that pairs lenders seeking yield with Indonesian MSMEs seeking uncollateralized loans. Credit scores are computed off-chain using hybrid data and anchored on-chain as a verifiable hash.
Lender Flow
Get Test Tokens
Visit the Faucet to mint 1,000 mUSDC (testnet) to your wallet.
Supply Liquidity
Approve mUSDC and supply to the Lending Pool. You receive proportional shares.
Earn Interest
Borrower repayments increase the pool's assets. Your shares grow in value (exchange-rate index).
Withdraw Anytime
Burn your shares to withdraw your principal + earned interest, subject to available liquidity.
Borrower Flow
Register UMKM
Submit your business info via the Borrow > Onboarding tab. Raw data stays off-chain in Supabase.
Compute Credit Score
The server reads on-chain factors (wallet age, repayment history) and off-chain factors (electricity, BPJS, e-commerce, revenue).
ISSUER Attests On-Chain
An ISSUER verifies your score and calls attest(), writing only the hash + score + tier on-chain. This mints your Soulbound Token (SBT).
Borrow
With SBT and score ≥ 300, borrow up to your tier limit. Fixed interest rate, 30-day term.
Repay
Repay principal + accrued interest before the due date. On-time full repayment improves your score for future loans.
Hybrid Credit Scoring
The protocol uses a weighted scoring algorithm. On-chain factors contribute 60% and off-chain factors contribute 40% of the final 0–1000 score. All raw data stays off-chain; only a keccak256 hash of the canonical data bundle plus the final score and tier are written on-chain.
On-Chain (60%)
- Wallet Age (30%)
- Repayment Count (35%)
- On-time Ratio (35%)
Off-Chain (40%)
- Electricity Score (25%)
- BPJS Status (15%)
- E-commerce Volume (30%)
- Monthly Revenue (30%)
Soulbound Token (SBT) & Tier Limits
When an ISSUER attests a score on-chain, a non-transferable ERC-721 (Soulbound Token) is minted to the borrower's wallet. The SBT contains the score, tier, and last updated timestamp. It cannot be transferred or approved — it is permanently bound to the wallet.
| Tier | Score Range | Label | Max Borrow |
|---|---|---|---|
| T1 | 800–1000 | Excellent | 10,000 mUSDC |
| T2 | 650–799 | Good | 5,000 mUSDC |
| T3 | 500–649 | Fair | 2,500 mUSDC |
| T4 | 300–499 | Poor | 1,000 mUSDC |
| T5 | 0–299 | Very Poor | Cannot borrow |