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Gnosis Credit Card

Gnosis Credit Card enables self-custodial spending with pre-approved credit, driven by decentralized identity and on-chain reputation.

With SafeAuth social login, Aave-backed borrowing, and off-chain settlement, users enjoy a seamless credit experience — without compromising ownership or privacy.

🔄 User Journey

• Sign In with Social Account

  • User logs in via SafeAuth and instantly creates a self-custodial Safe smart wallet.

• Get a Credit Score

  • A mock identity system assigns a credit tier based on on-chain activity and reputation.

• Deposit Collateral & Activate Credit

  • User deposits ETH, and the system borrows stablecoins using a mock Aave lending flow.

• Spend Off-Chain

  • Users spend within their credit limit; each transaction is hashed off-chain using merkle tree.

• Monthly Settlement

  • Users repay manually or via monthly auto-deduction from collateral.

• Earn Rewards & Build Credit

  • After repayment, users receive token rewards and see their credit score adjust over time.

🚀 Key Features

1. Social Authentication

• Built with Safe and Web3Auth's new SafeAuth system
• Users can log in using social accounts (e.g., Google, Discord) without leaving the dApp
• Instantly creates a Safe Smart Account as the user's credit wallet

2. Identity & Credit Scoring

• Comprehensive DID (Decentralized Identity) integration (simulated)
• On-chain data analysis for credit assessment
• Gnosis Pay transaction history analysis
• Five-tier credit rating system:
  • Different credit limits
  • Variable cashback rewards
  • Customized interest rates

3. Deposit & Lending

• Aave V3 protocol integration (simulated)
• Direct collateral deposit / funds borrow through the credit card interface
• 50% Loan-to-Value (LTV) ratio
• Real-time collateral management

4. Repayment System

• Off-chain pre-payment system
• Merkle tree-based transaction hashing
• Credit limit-based spending authorization
• Real-time transaction tracking

5. Settlement & Rewards

• Monthly batch settlement of off-chain transactions
• Automated cashback token distribution

🛠️ Technical Stack

• Smart Contracts: Solidity, Hardhat, Ethers.js, Viem -> Includes mock lending contracts inspired by Aave v3 (real Aave integration planned).
• Frontend: Next.js, TypeScript, React, Tailwind CSS, Radix UI
• Authentication: Safe Core SDK, Safe Protocol Kit, Safe API Kit, SafeAuth (Safe x Web3Auth), RainbowKit
• Identity: Mock credit scoring based on on-chain data (Ceramic-based DID integration planned)
• Settlement: Off-chain Merkle tree batching (ZK proof integration planned)
• Blockchain: Gnosis Chiado Testnet

🚀 Getting Started

Prerequisites

• Node.js (v18 or higher)
• MetaMask wallet
• Git
• pnpm (recommended) or npm

Installation

1. Clone the repository:

git clone https://github.com/kayyueth/gnosis-credit-card.git
cd gnosis-credit-card

2. Install dependencies:

pnpm install

3. Set up environment variables:

cp .env.example .env.local

Required environment variables:

NEXT_PUBLIC_WEB3AUTH_CLIENT_ID=your_web3auth_client_id
NEXT_PUBLIC_INFURA_KEY=your_infura_key
NEXT_PUBLIC_CHIADO_RPC_URL=https://rpc.chiadochain.net
NEXT_PUBLIC_MOCK_WSTETH_ADDRESS=0x9fa52f7c3a19a066a9b7f2EBCA4BC6340366518F
NEXT_PUBLIC_MOCK_USDC_ADDRESS=0x969A2c1c858DA82FB48627DF8f5726c1fE0a2e94
NEXT_PUBLIC_MOCK_EURE_ADDRESS=0x137e7a3c32993cD0c15dfDF3020875322da145cd
NEXT_PUBLIC_MOCK_LENDING_PROTOCOL=0xF1D00F6c7E7Fc7Eda00fCe95583b8d6DD4716572
NEXT_PUBLIC_GNO_POINTS=0x70630625dCc6FDb9EFD00466A47E7d3883E6F5d5
NEXT_PUBLIC_GNOSIS_CREDIT_CARD=0xd443055C84Eb7ed7134586ED4605B17072A1025f

4. Start the development server:

pnpm dev

The application will be available at http://localhost:3000

Smart Contract Deployment

1. Install Foundry:

curl -L https://foundry.paradigm.xyz | bash
foundryup

2. Deploy contracts to Chiado testnet:

cd contracts
forge build
forge script script/Deploy.s.sol:DeployScript --rpc-url $NEXT_PUBLIC_CHIADO_RPC_URL --broadcast

Testing

Run the test suite:

# Unit tests
pnpm test

# E2E tests
pnpm test:e2e

Building for Production

pnpm build

Docker Support

Build and run with Docker:

docker build -t gnosis-credit-card .
docker run -p 3000:3000 gnosis-credit-card

📊 Credit Formula

A trust layer that scores users across 3 weighted dimensions (each 0–100):

Dimension	Weight	Description
Financial Trustworthiness	40%	DeFi activity, LTV, repayment, liquidation
DAO Participation	30%	Snapshot voting, GNO staking, proposal involvement
Social Connectivity	30%	Multisig partners, Gitcoin Passport, social proof

• Total score = 0.4 × Financial + 0.3 × DAO + 0.3 × Social
• Credit score influences borrowing limit and loan parameters

💰 Credit Tiers

Credit Tier	Credit Score	Credit Limit	Cashback Reward	Interest Rate (based on Aave rate)
S, Sovereign	800-1000	$15,000	3%	0.8x
A, Ally	650-799	$10,000	2%	1x
B, Basic	500-649	$5,000	1.5%	1.2x
C, Citizen	350-499	$3,000	1%	1.5x
D, Dormant	0-349	$1,000	0.5%	1.8x

📈 Future Developments

Phase 0: Make It Smooth

• Implement lock(): Prevent users from withdrawing borrowed funds until their credit balance is fully repaid, ensuring proper settlement of obligations.
• Implement liquidate(): Automatically trigger liquidation of collateral if the user's health factor drops below 1.2, protecting the protocol against bad debt.
• Implement forceRepay(): If a user fails to repay by the end of the billing cycle, the protocol will automatically swap a portion of their collateral to settle the outstanding credit.

Phase 1: Make It Work

• Integrate with Aave v3 on Gnosis Chain for actual lending and borrowing.
• Integrate Gnosis Pay API for issuing payment credentials and settlement.
• Connect Ceramic for decentralized identity (DID) management.
• Merge Gnosis Pay DID data to improve credit scoring granularity.

Phase 2: Make It Better

Allow users to generate ZK proofs of spending:

• Prove creditworthiness without revealing transaction details.
• Optional submission to 3rd-party credit evaluators or lending markets.

📄 License

This project is licensed under the MIT License - see the LICENSE file for details.