DeFi charity platform for efficient and transparent fundraising

Our client is a coalition of international charitable foundations, each with a unique mission and focus areas. These foundations have been using traditional fundraising methods, such as in-person events, direct mail campaigns, and online donation platforms. However, they have found these methods to be inefficient and inconvenient for both charities and donors for the following reasons.

• High transaction fees. Existing platforms charged high commissions on donations and thereby reducing the impact of contributions and resulting in a significant loss of funds for the charities.
• Lack of transparency. Traditional methods lacked transparency in fund allocation and usage, making it difficult for donors to track their contributions.
• Limited reach. The client’s fundraising efforts were geographically limited, hindering their ability to connect with donors worldwide.
• Slow fund transfer processes. Traditional fund transfer processes delayed the delivery of funds to beneficiaries and the implementation of charity projects.

To reduce platform commission fees, enhance transparency, and expand their global reach, the client was interested in developing a decentralized finance (DeFi) application. Our team was selected to complete the mission.

To address the challenges faced by our client, we developed a comprehensive solution that leveraged blockchain technology, smart contracts, and a staking system.

Smart contracts

We developed several layers of smart contracts to manage the logic of the application, including:

• Donation contract. This contract handles incoming donations, securely storing them in a designated wallet. This establishes a reliable and transparent donation process, ensuring that all donations are accurately recorded and stored.
• Staking contract. This contract manages the staking scheme, using Aave’s lending protocol to generate interest on the donated funds. We designed the staking contract to maximize the interest earned on the donated funds, while minimizing the risk of losses.
• Multisignature contract. This contract increases security by requiring multiple signatures from authorized parties to withdraw funds, ensuring that only authorized parties can access funds, preventing unauthorized withdrawals.

Server-side logic

To address potential performance issues, we implemented server-side logic that duplicates read requests for NFTs. This optimization allowed for faster data retrieval and sorting, significantly improving the overall performance of the application. We also implemented a caching mechanism to reduce the load on the database and improve the application’s performance.

Front-end

Our design team built a user-friendly interface to make donations a breeze and provide transparency in the staking process. The intuitive and easy to use front-end allows donors to easily make donations and track the progress of the fundraising campaign.

Staking system

To increase the amount of capital raised without charging a commission, we designed a staking system that uses Aave’s lending protocol. Here’s how the staking system works:

• Donations. Users donate funds through the donation contract, which then transfers those funds to the staking contract.
• Staking. The staking contract stakes the donated funds on Aave, earning interest on the principal amount.
• Interest accrual. The accrued interest is added to the principal amount, effectively increasing the total capital raised for the charitable cause.
• Withdrawal. When the fundraising goal is reached, the multi-signature contract is triggered, allowing authorized parties to safely withdraw the funds.

The app we built helped the client raise more money more efficiently. The staking scheme enabled the platform to make the most of donations by eliminating any fees.

Blockchain technology showed donors where their money was directed, which formed trust and made them more likely to keep donating. The platform expanded its reach globally, attracting more potential donors and increasing contributions from various locations worldwide.

In addition, the solution made it easier to transfer money, so the client could respond to new needs and launch projects more quickly.