LiquiFact is a decentralized invoice financing protocol built on the Stellar network that enables small and medium businesses (SMEs) to unlock liquidity from unpaid invoices instantly.

The platform tokenizes invoices as real-world assets (RWAs) and allows investors to fund them, providing immediate working capital to businesses while earning returns.

Small and medium enterprises (SMEs) often operate with long payment cycles (30–90 days).

Typical scenario:

1. Supplier delivers goods/services
2. Buyer agrees to pay after 30–90 days
3. Supplier needs cash immediately to continue operations

This results in trapped working capital for SMEs globally.

The global invoice factoring market exceeds $3 trillion annually.

LiquiFact introduces a tokenized invoice financing marketplace built on Stellar.

Invoices become digital assets that investors can fund.

1. SME uploads invoice
2. Invoice is verified
3. Invoice is tokenized as a Stellar asset
4. Investors fund the invoice
5. SME receives instant stablecoin liquidity
6. Buyer pays at maturity
7. Investors receive repayment + yield

Invoices are converted into tokenized assets on Stellar.

Example:

Invoice #INV-1023
Amount: $10,000
Due: 60 days

Tokenized as:

LF-INV-1023

SMEs receive stablecoins immediately instead of waiting months.

Investors worldwide can participate in invoice funding.

AI-based scoring evaluates:

• Buyer credibility
• SME payment history
• Industry risk
• Invoice value

Liquidity providers can contribute to risk pools that insure invoice defaults.

LiquiFact is built on the Stellar blockchain because of its strengths:

flowchart LR

SME[SME Business]
Upload[Invoice Upload API]
Verify[Verification Service]
Tokenize[Invoice Tokenization Service]
Stellar[Stellar Network]
Marketplace[Liquidity Marketplace]
Investors[Global Investors]
Escrow[Escrow Contract]
Settlement[Settlement Engine]

SME --> Upload
Upload --> Verify
Verify --> Tokenize
Tokenize --> Stellar

Stellar --> Marketplace
Marketplace --> Investors

Investors --> Escrow
Escrow --> SME

Settlement --> Investors

flowchart TB

Frontend[Web App / Dashboard]

API[API Gateway]

Auth[Identity & KYC Service]
InvoiceService[Invoice Service]
RiskEngine[Risk Scoring Engine]
TokenService[Tokenization Service]
LiquidityService[Liquidity Pool Engine]
SettlementService[Settlement Engine]

DB[(PostgreSQL)]
Cache[(Redis)]

StellarNode[Stellar RPC / Horizon]
Soroban[Stellar Soroban Smart Contracts]

Frontend --> API

API --> Auth
API --> InvoiceService
API --> RiskEngine
API --> TokenService
API --> LiquidityService
API --> SettlementService

InvoiceService --> DB
RiskEngine --> DB
LiquidityService --> DB

TokenService --> StellarNode
SettlementService --> Soroban

The protocol uses Soroban smart contracts for escrow and settlement.

sequenceDiagram

participant SME
participant Platform
participant Investor
participant Stellar
participant Buyer

SME->>Platform: Upload Invoice
Platform->>Platform: Verify Invoice

Platform->>Stellar: Mint Invoice Token

Investor->>Platform: Fund Invoice
Platform->>SME: Release Stablecoin

Buyer->>Platform: Pay Invoice

Platform->>Investor: Return Principal + Yield

Invoices are represented as tokenized assets.

LiquiFact implements multiple risk mitigation mechanisms.

Risk Layers

• AI credit scoring
• Buyer verification
• Invoice authenticity verification
• Insurance liquidity pools
• Diversification

Frontend

• React
• Next.js
• TailwindCSS
• Stellar Wallet integration

Backend

• Golang
• Node.js (API layer)
• gRPC microservices
• REST APIs

Blockchain

• Stellar Network
• Soroban smart contracts
• Horizon API
• Stellar SDK

Infrastructure

• Docker
• Kubernetes
• PostgreSQL
• Redis
• AWS / GCP

AI Risk Engine

• Python
• XGBoost
• Fraud detection models

erDiagram

SME {
  string id
  string company_name
  string country
  string wallet
}

INVOICE {
  string id
  string buyer
  float amount
  date due_date
  string status
}

INVESTMENT {
  string id
  string invoice_id
  string investor
  float amount
}

SME ||--o{ INVOICE : creates
INVOICE ||--o{ INVESTMENT : funded_by

LiquiFact generates revenue through:

• Multi-signature treasury
• Invoice fraud detection
• KYC verification
• Buyer verification
• Oracle validation
• Contract audits

Phase 1

• Invoice tokenization
• Funding marketplace
• Escrow contracts

Phase 2

• AI risk engine
• Cross-border invoices
• Secondary invoice market

Phase 3

• Insurance pools
• Institutional investors
• On-chain credit scores

LiquiFact unlocks trapped working capital for millions of SMEs globally.

Benefits:

• Instant liquidity
• Lower financing costs
• Global investor access
• Transparent financing markets

liquifact/
├── contracts/     # Soroban smart contracts (escrow, settlement)
├── backend/       # Express API server
├── frontend/      # Next.js web app
└── README.md

• Contracts: cd contracts && cargo build
• Backend: cd backend && npm install && npm run dev
• Frontend: cd frontend && npm install && npm run dev

License: MIT