OceanProtocol Non-Custodial Loan Infrastructure | Ocean Loan Union | Round 17

Project Name

OceanProtocol Non-Custodial Loan Infrastructure

Project Category

Build & Integrate

Proposal Earmark

New Entrants

Proposal Description

At the moment, available solutions to the lending of crypto assets are centralised. The fact that these services are centralised raises some concerns such as the funds may be stolen, and the funds are not always available. Ocean Loan Union is our unique solution to this problem. It is a decentralised, non-custodial and trustless protocol that allows users to borrow or lend Ethereum based tokens using ocean tokens as collateral or vice versa using a method known as an atomic swap.

Grant Deliverables

  • Design UI/UX files and protocol documentation to enable other devs to implement the systems in their respective application environments.
  • Begin the mobile implementation of the Ocean Loan Union in a compatible wallet infrastructure.
  • Create Marketing Materials to target crypto enthusiasts and traders to utilise our framework.

Project Description

A decentralized, non-custodial and trustless protocol that allows users to create overcollateralized debt instruments across Ocean and Ethereum

Final Product

not set

Value Add Criteria

Creating cross-chain interoperability between Ocean and Ethereum will allow market participants to access liquidity between blockchains by enabling loans to occur between different blockchains without intermediaries.

Some of the benefits to the OceanProtocol ecosystem are:

  • Enabling stable coin/ERC20 tokens to access Ocean holders.
  • Allowing OCEAN holders to exchange the time value of their tokens without selling.
  • Allowing users to Lend and Borrow tokens without intermediaries or giving up custody of their assets.

Some of the risks to the ecosystem if this system is not implemented correctly:

  • OCEAN market volatility due to lack of liquidity.
  • Centralised OCEAN lending services can be hacked or steal the funds of their users.
  • Lack of OCEAN interoperability with other blockchains.

Risks that could make executing this project difficult:

  • Libraries in early development stages.
  • OCEAN specifications / functionality still not implemented
  • Lack of library support for web/mobile environments.

Funding Requested

Minimum Funding Requested

Wallet Address

Hi there,

Thank you for participating in OceanDAO Round 16!Thank you for applying for R-1y!

Your proposal has been registered into the system and is already live for voting here:

We try to make your first grant easy to earn (you are registered in the New Entrant Earmark)

However, your final product is not set. I would suggest adding this to increase your chances of obtaining your grant.

Also, I would suggest getting in contact with existing OceanDAO grantees like DataX and Data Whale. They have begun to integrate DataFi features.

We would also recommend one (or all) of the following steps:

  1. Say hi to the community in #ocean-dao and share your proposal.:
  1. Voting period is 4 days, ending Monday, April 11, 23:59 UTC. Talk about your project and ask your community to vote as much as you can. We will share/retweet as much as we can.

  2. Say hi to the members of the #project-guiding WG and find your guide. They have experience in how best to propose and run OceanDAO projects:

  1. Attend a Town Hall or join a working group:
  1. Keep your project guide close, they are here to help you. Feel free to ask for a quick call, sharing-sessions, feedback, or contacts to other projects in the ecosystem: Discord

  2. If you win a grant, make sure to claim it yourself within 12 days(!) after voting period ended, right here: https://oceanprotocol.com/web3Tools

  3. When BUIDLing with your grant, feel free to share your amazing updates here: Discord

  4. Welcome aboard! Reach out anytime if you have questions, either to me or in the Project Guiding Working Group. Enjoy yourself and build towards a #NewDataEconomy with us! :ocean::yin_yang::raised_hands:

1 Like

Hello! Thanks for the submission.

Ocean Protocol already has non-custodial loan infrastructure: H2O. It’s live as of last week. https://www.h2odata.xyz/. H2O an OCEAN-backed stable asset. Its design is based on RAI, which is based on DAI. Therefore it’s an overcollateralized debt instrument. Someone can take their OCEAN, mint H2O from it, then do whatever they like: swap H2O for ETH, put into a yearn vault and earn yield, etc.

Ocean also has cross-chain interoperability, for both OCEAN token and Ocean smart contracts. Details: Ocean V3 is across 5 EVM chains, and Ocean V4 will be across those soon as well (plus more afterwards). For each of these, there are OCEAN bridges. Details: https://v3.docs.oceanprotocol.com/concepts/networks/

DeFi & NFTs are a broad spaces with many useful tools; Ocean datatokens & data NFTs offer many ways opportunities to bridge data into these tools. It would be great if you could update your proposal to leverage some of these tools to improve upon existing Ocean ecosystem capabilities with new things. Eg data insurance, new variants of data DAOs, complementary approaches to loans, etc.


Hi @trentmc0 Thank you for the detailed criticism and an overview of the ecosystem.

Although, I had the plan for a non-custodial loan infra on OCEAN as far as DAO 13. However, the support wasn’t strong to see this through. I am happy to see what H20 Data is doing and I will definitely be watching to explore the space as much as possible and ultimately contribute if the opportunity presents.

For your suggestions on coming up with innovative projects around loan infrastructures, I have taken note and will try to tweak and improve the application for subsequent rounds.

Thank you.

1 Like