🔐Social Verification

Overview

Social verification lets borrowers prove they're connected to lenders. Research shows loans with verified friend connections have 10% better repayment rates (Grameen Bank).

Current Status: Not yet implemented. Requires OAuth provider setup (CDP or Privy) and database configuration.

What Works Today

Farcaster

✅ Fully Integrated

• Check mutual follows via Neynar API

• Display Farcaster profiles on borrower pages

• Social proximity scoring (Adamic-Adar algorithm)

See: Farcaster Integration for details

What's Been Built

Database Schema

• supabase/social_connections.sql - Table to store verified connections

• Tracks who attested whom on which platform

• Ready to use once you run the SQL

API Endpoint

• POST /api/social/verify-friendship - Verifies connections

• Supports Farcaster and Facebook (limited)

• Stores verification in Supabase

React Components (Built but Not Integrated)

• <VerifyFriendshipButton> - Button to verify a friendship

• <SocialConnectionBadge> - Display verified connections

• useSocialVerification() - Hook for verification logic

Note: These components currently use Privy for OAuth, but the app uses CDP. Need to rewrite for CDP OAuth system before integrating.

Platform Support Reality

Platform	Status	Why
Farcaster	✅ Working	Open API, already integrated
Facebook	⚠️ Built but limited	API only shows friends who also use your app
Instagram	❌ Not possible	No API for friend connections
Twitter	❌ Not possible	API restrictions + ToS prohibits
LinkedIn	❌ Not possible	API restrictions + ToS prohibits

Reality Check: After Facebook's 2018 Cambridge Analytica restrictions, most social platforms locked down friend data. Only open protocols (Farcaster, Bluesky) give full access.

Research Foundation

Grameen Bank findings:

• Loans with 20+ friend lenders: 98% repayment

• Loans with 0 friend lenders: 88% repayment

• +10% improvement from social connections

Implementation To-Do List

🔧 Phase 0: Prerequisites (Blocked)

• Choose OAuth Provider

  • Current app uses CDP (Coinbase Developer Platform)

  • Built components use Privy

  • Decision: Rewrite for CDP OAuth OR add Privy to app

• Rewrite Components for CDP

  • Update useSocialVerification hook to use CDP instead of Privy

  • Update VerifyFriendshipButton to use CDP's linkAccount methods

  • Test CDP OAuth flow with Google/Twitter/Discord

✅ Phase 1: Database Setup

• Add Supabase Anon Key to .env.local

  • Go to: https://supabase.com/dashboard/project/YOUR_PROJECT/settings/api

  • Copy "anon public" key

  • Add to .env.local: NEXT_PUBLIC_SUPABASE_ANON_KEY=your_key_here

• Run SQL Schema in Supabase

  • Go to: https://supabase.com/dashboard/project/YOUR_PROJECT/editor/sql

  • Click "New Query"

  • Copy/paste contents of supabase/social_connections.sql

  • Click "Run"

✅ Phase 2: Integration

• Add components to loan detail page

  • Add <SocialConnectionBadge> under borrower name

  • Add "Verify Your Connection" section for lenders

  • Test the full flow

⏭️ Phase 3: Facebook Verification (Optional)

• Create Facebook App

  • Go to: https://developers.facebook.com/

  • Click "My Apps" → "Create App"

  • Choose "Business" type

  • Add "Facebook Login" product

• Get App Access Token

  • Go to Settings → Basic

  • Copy App ID and App Secret

  • Format: {app-id}|{app-secret}

• Add to .env.local

  FACEBOOK_APP_ACCESS_TOKEN=123456789|abc123def456

• Configure OAuth URLs

  • In Facebook App Settings

  • Add OAuth redirect: http://localhost:3004/api/auth/callback

  • Add domain: localhost

Note: Facebook only shows friends who also use your app (post-2018 API restrictions)

📊 Phase 4: Measurement

• Track Verification Rates

  • Monitor how many lenders verify friendships

  • Query: SELECT COUNT(*) FROM social_connections WHERE platform='farcaster'

• Compare Repayment Rates

  • Loans with verified friends vs. no verification

  • Hypothesis: +10% better repayment (based on Grameen Bank research)

• Identify Top Platforms

  • Which platforms do users prefer to verify?

  • Query: SELECT platform, COUNT(*) FROM social_connections GROUP BY platform

Future: On-Chain Attestations

Eventually migrate from Supabase to Ethereum Attestation Service (EAS) on Base for:

• Decentralization

• Composability (other apps can read)

• Permanence

But for now, Supabase lets us iterate quickly.

See Also

• 🤝 Social Trust Scoring - Farcaster social graph scoring (live)

• 🎭 Farcaster Integration - What's actually working