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RemitMortgage

A decentralized remittance-backed mortgage protocol built on Stellar.

RemitMortgage enables diaspora communities to leverage their verified remittance-sending history as proof of creditworthiness to access property financing. By utilizing Soroban smart contracts, USDC escrow savings, milestone-gated construction disbursements, and multisig governance, it replaces inaccessible traditional mortgage systems with a transparent, on-chain alternative.

It's the bridge between consistent remittance behavior and real homeownership.

Motivation

Millions of people in the global diaspora send money home every month — consistently, reliably, for years. Yet this financial track record is invisible to traditional lenders. Banks don't recognize cross-border remittance history as proof of creditworthiness, leaving hardworking families locked out of property ownership in their home countries.

RemitMortgage makes remittance history count:

  • Prove Your Track Record: Verify ownership of wallets used to send remittances and let the protocol analyze your Stellar payment history for consistency and reliability.
  • Save Toward Ownership: Contribute 30% down payment over 6–12 months into a Soroban escrow contract, earning yield on pooled funds while you save.
  • Build With Accountability: The remaining 70% is disbursed from a lending pool in milestone-based tranches to vetted contractors — gated by photo/video evidence on IPFS and multisig governance approval.

Features

  • Remittance Verification — Off-chain scoring service analyzes Stellar payment history for recurring amounts, regular intervals, and sustained sending patterns to establish borrower eligibility.
  • Escrow Savings Contract — Soroban smart contract holds USDC contributions over 6–12 months, tracks individual balances, and enforces early withdrawal penalties (configurable basis points).
  • Lending Pool Contract — Investor capital deposits, loan requesting/approval, milestone-based disbursement, and borrower repayment with simple interest — all on-chain.
  • Milestone Disbursement — Construction funds released only when IPFS-hashed photo/video evidence is submitted and approved by a multisig governance committee.
  • Multisig Governance — Stellar native multi-signature accounts gate milestone approvals, with configurable signer weights and thresholds.
  • Stablecoin Settlement — All contributions, disbursements, and repayments settle in USDC on Stellar with sub-cent fees and 3–5 second finality.
  • Yield on Escrow — Pooled escrow funds can be routed into Soroban-based lending protocols to earn passive yield while accumulating.

Stack

  • Frontend: Next.js, TypeScript, Tailwind CSS
  • Wallet: Freighter + @stellar/freighter-api
  • Smart Contracts: Rust, Soroban SDK v22
  • Backend: Node.js/TypeScript, Stellar SDK (js-stellar-sdk)
  • Database: PostgreSQL (off-chain applicant records)
  • Storage: IPFS via Pinata (milestone evidence)

Running it locally

Prerequisites

  • Node.js ≥ 18.0.0
  • Rust (latest stable) + wasm32-unknown-unknown target
  • Stellar CLI — cargo install stellar-cli
  • Freighter Wallet browser extension

1. Setup Frontend

cd frontend
npm install

Configure frontend/.env.local:

NEXT_PUBLIC_ESCROW_CONTRACT_ID=your_escrow_contract_id
NEXT_PUBLIC_LENDING_POOL_CONTRACT_ID=your_lending_pool_contract_id
NEXT_PUBLIC_USDC_TOKEN_ID=your_usdc_token_id
NEXT_PUBLIC_NETWORK_PASSPHRASE=Test SDF Network ; September 2015
NEXT_PUBLIC_HORIZON_URL=https://horizon-testnet.stellar.org

Run the dev server:

npm run dev

2. Setup Contracts

To build and test the smart contracts:

cd contracts
cargo build --target wasm32-unknown-unknown --release
cargo test

How Remittance-Backed Mortgages Work

RemitMortgage coordinates the entire homeownership journey on-chain through five phases:

  1. Verification: The borrower proves ownership of their remittance-sending wallet(s) by signing a message. The backend queries Stellar Horizon for their outgoing USDC payment history and scores it for consistency — recurring amounts, regular intervals, and sustained behavior.
  2. Savings: The borrower contributes toward a 30% down payment over 6–12 months into the Soroban escrow contract in USDC. Pooled funds can earn yield via integrated lending protocols.
  3. Loan Approval: Once the 30% target is met, the escrow releases funds and the borrower requests a loan from the lending pool for the remaining 70%. The admin (or governance committee) approves the loan after verifying pool liquidity.
  4. Construction: The 70% is disbursed in milestone-based tranches to whitelisted contractors and suppliers. Each tranche requires IPFS-hashed photo/video evidence of completed work, reviewed and approved by a multisig governance committee.
  5. Repayment: The borrower repays the 70% loan over time in USDC, settling instantly on Stellar with sub-cent transaction fees.

Roadmap

  • Verification Registry Contract: On-chain anchor for borrower verification reports — store eligibility hashes for auditability without exposing private data.
  • Milestone Disbursement Contract: Full implementation of IPFS evidence submission, multisig approval gating, and milestone-tracked fund releases.
  • Credit Scoring Engine: Automated off-chain service that generates borrower eligibility scores from Stellar transaction history analysis.
  • Yield Integration: Route idle escrow funds into Soroban lending protocols (e.g., Blend Capital) to earn passive yield during the savings phase.
  • Frontend Dashboard: Borrower portal for savings tracking, loan status, repayment schedules, and milestone progress visualization.

Documentation

  • Architecture: Core principle of separating verification from settlement, contract suite design, and end-to-end flow.
  • Contributing Guide: How to set up locally, branch conventions, commit standards, and PR guidelines.

Testing on Testnet

Comprehensive testnet instructions are available in the docs folder:

  • docs/DEPLOYMENT.md — deployment steps, building WASM, and initializing contracts.
  • docs/TESTNET_SETUP.md — Friendbot, Freighter, and minting/testing USDC tips.
  • docs/E2E_TESTING.md — end-to-end borrower walkthrough with example CLI commands.

Refer to those guides to deploy contracts, fund wallets, and exercise the full borrower lifecycle on Stellar testnet.

License

MIT

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A decentralized remittance-backed mortgage protocol on Stellar, enabling diaspora communities to use verified remittance history as alternative credit for home financing.

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