DennisMuasyaWambua/Tokenized_Invoice_Discounting

Network-Enhanced Credit Scoring for DeFi Invoice Financing in Kenya A machine learning system that analyzes M-Pesa B2B transaction networks using Graph Neural Networks (GNNs) to generate credit scores for invoice tokenization, enabling Kenyan SMEs to access cheaper DeFi liquidity. # Tokenized_Invoice_Discounting Network-Enhanced Credit Scoring for DeFi Invoice Financing in Kenya A machine learning system that analyzes M-Pesa B2B transaction networks using Graph Neural Networks (GNNs) to generate credit scores for invoice tokenization, enabling Kenyan SMEs to access cheaper DeFi liquidity. # 🧾 TokenizedInvoice-KE ## Network-Enhanced Credit Scoring for DeFi Invoice Financing in Kenya A machine learning system that analyzes M-Pesa B2B transaction networks using Graph Neural Networks (GNNs) to generate credit scores for invoice tokenization, enabling Kenyan SMEs to access cheaper DeFi liquidity. --- ### 🎯 The Problem Kenyan SMEs face a **KES 1.7 trillion financing gap** with invoice factoring rates of **36-60% APR**, while DeFi protocols offer liquidity at **5-12% APR**. The missing link? Reliable credit scoring for emerging market businesses. ### 💡 The Solution We leverage the rich network structure of M-Pesa business transactions to: 1. **Build transaction graphs** where businesses are nodes and payments are edges 2. **Train GNN models** to learn creditworthiness from network position 3. **Predict invoice default** using network + invoice features 4. **Tokenize invoices** with on-chain verifiable credit scores 5. **Connect to DeFi** liquidity pools for cheaper financing --- ### 🔬 Key Features - **Graph Construction**: Build directed weighted graphs from M-Pesa B2B transactions - **GNN Credit Scoring**: GraphSAGE/GAT embeddings capture network effects - **Invoice Prediction**: Hybrid model combining GNN embeddings + invoice features - **Risk-Based Pricing**: Dynamic interest rates based on predicted default probability - **Smart Contracts**: Solidity contracts for invoice tokenization (ERC-721) - **Privacy-Preserving**: Zero-knowledge proofs for on-chain credit verification --- ### 🏗️ Architecture ``` ┌─────────────────┐ ┌──────────────────┐ ┌─────────────────┐ │ M-Pesa B2B │────▶│ Graph Builder │────▶│ GNN Model …