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Polytrade: Smart contracts & backend part development

Decentralized blockchain protocol designed to modernize receivables financing by bridging buyers, sellers, insurers, and investors for a smooth trading journey.
Polytrade: Smart contracts & backend part development
Project category

Web3 & Blockchain

Industry

Fintech, Web3

Location

Global

Duration

Jan 2022 - May 2022

Polytrade overview

Polytrade is a cutting-edge, blockchain-based platform that’s transforming the way small and medium-sized businesses manage their finance. By leveraging advanced technology, it facilitates immediate payment against invoices, helping businesses to meet their short-term financial obligations without delay.

Meanwhile, it offers a robust and secure avenue for investors to earn regular interest by funding these immediate payments. Our team has developed smart contracts and a liquidity pool system, thereby automating and securing the process from end to end.

How it works

Imagine John, who runs a furniture manufacturing business and sells his products to IKEA on a three-month credit term. This means that once John ships an order to IKEA, it would take 3 months for him to receive the sale proceeds. During this period, he must cover various costs such as employee salaries, utility bills, and purchasing raw materials. Here, Polytrade steps in, purchasing John's invoice and providing him with an immediate payment of typically 95% of the invoice amount.

Polytrade recoups the full amount from IKEA after three months, with the 5% difference serving as their earnings. Meanwhile, the platform is funded by investors depositing their crypto assets, providing a win-win situation where SMEs meet their short-term financial needs, and investors receive regular interest on their investments.

Objectives

The primary objectives for the development of Polytrade were:

  1. To develop a smart contract for processing debtor requests with an auxiliary smart contract for debtor assessment and risk management
  2. To develop a smart contract for the liquidity pool, from which:

    a) loans will be issued

    b) where creditors will deposit funds

    c) from where liquidity will be withdrawn upon confirmation of a receivable

    d) where the loan amount will be returned and profits will be distributed

  3. To create a backend system with API and admin panel for effective platform management.

Approach used

In developing Polytrade, our team used a systematic and agile approach. We began with the design and development of smart contracts for processing debtor requests, along with an auxiliary contract for debtor risk assessment.

Within the framework of the smart contracts, the following steps were implemented:

  • The ability to work with any number of tokens implementing the ERC20 standard for adding liquidity and issuing loans;
  • The flow of the application, consists of several stages, covering the connection of smart contracts of the system, as well as the project token;
  • Mechanism of automated assessment of the applicant (scoring) by several indicators in two stages — first on the basis of the backend, then on the basis of a smart contract (double-check);

Polytrade Interface
Polytrade Interface 5
Polytrade Interface 3
Polytrade Interface 2
Polytrade Interface 5
Polytrade Interface 4

Technologies used​

The Cyber Bee team made use of several advanced technologies for this project:

  1. Solidity: To write smart contracts for the Ethereum platform.
  2. HardHat: For implementing smart contracts and automation scripts.
  3. Docker-compose with an Nginx-based proxy: This technology stack was chosen for its efficiency in deploying the backend. It helped streamline the process and enhance the platform's overall performance.

By blending the power of these technologies with a strategic approach, the team successfully developed a state-of-the-art decentralized trade finance platform.

Tech stack

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