Technical Architecture

Locale Lending's and Data Flow & Technical Architecture

The Locale Lending's data flow and API architecture involve the following steps:

Data Collection:

• Bank Account to Plaid API: Financial data is collected from bank accounts using the Plaid API.

• Plaid API to HTTPs API Gateway: This data is sent to a Next.js server acting as an HTTPs API Gateway that will transform, encrypt and report to a standard webpage.

Data Processing:

• Reclaim Protocol Integration: The financial data is converted into a JSON file, which is then processed through the Reclaim Protocol to produce a zk-proof on Arbitrum. This ensures the data's integrity and validity.

• Storage in SQLite Database: The encrypted data, is sent to the backend inside of the CVM via a JSON file, further processed, and stored in an SQLite database via an input payload

Smart Contract Interaction:

• Loan Health Monitoring: Drastic changes in loan health trigger recalculations of interest rates and limits. These calculations are performed consistently on Cartesi, using financial and smart contract data.

• Smart Contract Updates: The results from these calculations are used as parameters to call smart contract functions, updating the loan terms accordingly.

Front-End Reporting:

• Investor Dashboard: Important loan health metrics and zk-proof links are reported on the front-end in an investor dashboard.

• Compliance and Reporting: Potential compliance and reporting to the SBA are triggered by changes in the smart contracts, ensuring regulatory adherence.