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Combining Loan Requests and Investment Offers in Peer­-to­-Peer Lending

A constrained optimization system to match loans and investments in a peer-to-peer lending environment.

Goals

The main objective of this work was then to build a system capable of successfully finding optimal combinations of:

  • loan requests: defined by the amount requested and the maximum rate at which the potential borrower is willing to repay the money and,

  • investment offers: defined by the amount offered by the lender and the minimum interest rate at which the potential lender is willing to receive its money back. Simultaneously, the system should attempt to maximize the amount of money traded, due to the volume based business model of the project.

Solution

The designed system consists of three components:

  • a constraint solving tool;

  • the optimization suite and

  • an adapter for the suite that uses the constraint solving library to solve the specific problem.

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A match optimizer for a peer-to-peer (P2P) lending system

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