Phase 0: Prove Trust Works
Status: Live on Base Sepolia Testnet Timeline: 2024-2025 Network: Base Sepolia (Chain ID: 84532)
Overview
Zero-interest microloans ($100-$5K) backed by social trust signals from Farcaster.
Core hypothesis: Social trust signals provide useful underwriting data for uncollateralized lending.[9][19]
Goal: Gather behavioral data to inform Phase 1 risk models.
Network: Base Sepolia testnet, mainnet planned for Q1 2025
→ Technical stack | Smart contract flow
How It Works
Social Trust Scoring:[2]
Algorithm: Adamic-Adar weighted mutual connections
Data: Farcaster social graph, Power Badge status, account quality
Risk Model (initial weights):
60% Social Trust Score
30% Repayment History
10% Loan Size Risk
These weights will be refined as we collect repayment data to optimize prediction accuracy.
Loan Lifecycle
Borrowers: Create loan with Farcaster identity, share across platforms, receive funds when funded, repay before maturity (7-day grace).
Lenders: Discover loans through social connections, see trust scores, contribute directly, track repayment on-chain.
Defaults: Unpaid loans after grace period create permanent on-chain records, making borrowers ineligible for future loans.
→ How it works | Virality mechanics
Design Constraints
Intentional constraints to test social trust primitive:
Zero interest — Tests pure social accountability
Single maturity — Simpler state management
Starts with Farcaster — Highest quality trust signals (may expand based on growth)
No cashflow verification — Focus on social trust first
Manual repayment — Tests reputation incentive
What We're Learning
Phase 0 gathers behavioral data to validate the social trust hypothesis and inform Phase 1:
Correlation between trust scores and repayment
Timing patterns and amounts
User acquisition and viral sharing
Community dynamics
Phase 1 begins once we have sufficient data to refine risk models—Phase 0 is about learning and iteration.
Next: Phase 1
→ Phase 1: Scale with Cashflow
Adds cashflow verification (Plaid, Square, Shopify), liquidity pools, interest rates (8-12% APR), and hybrid risk scoring.
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