Having reached peak buzz leading up to launch, students were eager to hear from Philip De Smedt, co-founder of Arkadiko
. Their session with him showed students how his team created the first self repaying loan platform for Bitcoin.
As Clarity students know, smart contracts are used for every transaction that takes place on the blockchain once certain conditions are met. In the case of Arkadiko, once you decide to take out a loan, STX tokens are deposited into a Vault as collateral where they begin Stacking. Usually when you begin Stacking, your tokens are locked for a period of time and you are not able to use them outside of the Stacking cycle. With Arkadiko, however, you’re issued a stablecoin called USDA (USD Arkadiko) to utilize while your STX are locked. Meanwhile, because the Stacking yield on the collateral Stacks is more than the loan interest rate, the loan effectively pays itself off.
Clarity contracts play a huge part in automating the self-repaying aspect of the loan. This means that once the conditions of the loan + Stacking are met, Clarity automatically executes the payment process by taking the BTC yield from the STX being Stacked and puts it toward the loan payment.
Students saw how Clarity combined with Stacking and Proof of Transfer can be powerful building blocks for all kinds of decentralized Bitcoin-based financial products and services. It’s clear that this is only the start of the Bitcoin DeFi movement.