How It Works
Loanzy uses cutting-edge cryptography to enable privacy-preserving loans. Here's how we protect your data while proving your creditworthiness.
The Borrowing Process
Connect Your Wallet
Connect your StarkNet wallet (Argent or Braavos). We analyze your on-chain transaction history to evaluate creditworthiness.
- ✓No personal information required
- ✓Instant wallet connection
- ✓Works with any StarkNet wallet
Generate Zero-Knowledge Proof
Our system creates a cryptographic proof that verifies you meet the creditworthiness criteria without revealing your exact financial data.
- ✓Proves balance ≥ threshold without revealing exact amount
- ✓Verifies transaction activity privately
- ✓Cryptographically secure and tamper-proof
Submit Loan Request
Submit your loan request to the StarkNet blockchain with your ZK proof attached. Lenders can verify your creditworthiness instantly.
- ✓Request posted on-chain
- ✓Transparent and auditable
- ✓Lenders see only the proof, not your data
Get Funded
Once a lender approves your request, funds are transferred to a smart contract escrow and then released to your wallet.
- ✓Instant approval and disbursement
- ✓Smart contract handles escrow
- ✓Automated repayment tracking
Technology Stack
Zero-Knowledge Proofs
ZK-SNARKs enable you to prove statements about your financial data without revealing the data itself.
StarkNet
Layer 2 scaling solution on Ethereum providing fast, low-cost transactions with Cairo smart contracts.
IPFS
Decentralized storage for encrypted identity data, ensuring no single point of failure.
Shamir Secret Sharing
Your encrypted identity is split into shares distributed to trustees for recovery in case of default.
Smart Contracts
Cairo contracts on StarkNet handle loan escrow, repayments, and default conditions automatically.
Wallet Integration
Seamless integration with Argent and Braavos wallets for easy on-chain interaction.
✓ What's Protected
- • Your exact wallet balance
- • Individual transaction amounts
- • Transaction counterparties
- • Spending patterns and history
- • Personal identity (until default)
- • Income details (if using payroll)
→ What's Revealed
- • Boolean: "Meets criteria" (yes/no)
- • Creditworthiness score (0-100)
- • Loan amount requested
- • ZK proof hash (commitment)
- • Wallet address (public anyway)
- • Loan repayment status
⚠️ Default Condition
If you default on your loan, trustees can reconstruct your encrypted identity using Shamir Secret Sharing. This ensures accountability while maintaining privacy for honest borrowers.
Ready to Get Started?
Experience the future of privacy-preserving finance. Get your loan approved in minutes without compromising your financial privacy.
Start Your Application