👨‍💻Technical Architecture

MZF PROTOCOL operates as a hybrid platform, combining off-chain institutional-grade debt underwriting with on-chain transparency and utility. The architecture is designed to optimise capital deployment into real-world debt deals, ensure compliant fund management, and provide auditable, real-time risk and portfolio tracking.

At the core of the infrastructure is a dual-structure model:

• Off-chain: All credit underwriting, borrower due diligence, and deal structuring is conducted using traditional investment workflows with KYC/AML controls.

• On-chain: Smart contracts facilitate capital disbursement, repayment scheduling, milestone-based release mechanisms, and transparent fund flows — all recorded immutably on-chain.

To ensure institutional-grade custody and security, MZF PROTOCOL uses Coinbase's Institutional Wallet product, enabling secure segregation of assets, multi-party governance, and audited flows between parties. This solution bridges operational trust with DeFi-native access, allowing verified users to interact with the protocol while maintaining compliance standards.

The protocol is being developed on BASE, an Ethereum Layer 2 network incubated by Coinbase. BASE offers a scalable and cost-efficient environment with strong developer tooling and growing network incentives. Building on BASE allows MZF PROTOCOL to benefit from lower transaction costs, EVM compatibility, and alignment with Coinbase’s broader ecosystem — while tapping into a high-growth, forward-compatible infrastructure layer designed for real-world applications.

This architecture reflects MZF PROTOCOL’s philosophy: to blend the best of traditional finance (rigorous underwriting, regulatory alignment, institutional custody) with the transparency, automation, and global reach of decentralised finance.

Protocol Mechanics & Token Utility

The MZF PROTOCOL ecosystem is composed of both off-chain systems that manage borrower onboarding, loan origination, servicing, and risk analytics, and a suite of smart contracts that govern token utility, reserve operations, and access control. These components interact seamlessly to support platform sustainability, credit risk management, and user engagement. What this means practically is once a funding opportunity has been approved by MZF PROTOCOL’s investment committee, MZF PROTOCOL may provide funding to startups and opportunities in less than a week.

A core innovation of the MZF PROTOCOL protocol is its staking-driven capital allocation model. Through the dApp, users can stake their $MZF tokens to signal support for specific vetted startups or debt opportunities. This on-chain signal operates like a decentralised vote of confidence — and plays a direct role in shaping capital deployment priorities.

When a critical threshold of $MZF tokens is staked toward an opportunity, it triggers funding disbursement via smart contracts. This mechanism creates a transparent, community-aligned pathway for capital to reach high-potential projects, while still respecting oversight from MZF PROTOCOL’s investment and risk committees.

Staking also reinforces user engagement and alignment: participants are incentivised to back opportunities they believe in, while the protocol retains safeguards to avoid reckless capital deployment. By anchoring token utility to real-world capital flows, MZF PROTOCOL transforms user participation into a key lever of capital formation — something traditionally reserved for institutional allocators.

The $MZF token, therefore, is more than a governance tool; it is the connective tissue between token holders, opportunities, and on-chain infrastructure. It enables gated access to funding campaigns, milestone reporting, and portfolio dashboards, while embedding skin-in-the-game dynamics into the funding lifecycle.

On-Chain Infrastructure

At the heart of MZF PROTOCOL’s on-chain stack are a set of BASE-compatible smart contracts that facilitate token issuance, reserve management, and access control:

• $MZF Token Contract: An ERC-20 standard token contract that governs issuance, transfers, and balance tracking. While it does not confer direct rights to revenue or investment returns, it serves as the utility token for staking rewards (where applicable), community access, and governance.

• Reserve Pool Contract: Designed to hold approximately 20% of the protocol treasury's token allocation, this smart contract functions as an insurance buffer against loan defaults and systemic shocks. It provides liquidity support and strengthens the platform's resilience during periods of stress.

• Access Control and Token-Gating: Smart contracts or off-chain integrations verify wallet holdings of $MZF to determine eligibility for gated experiences. Access to the token-gated WhatsApp community, for example, is contingent upon token ownership thresholds, verified periodically through integrations with wallet snapshot tools or custom backend scripts.

• Staking & Governance Contracts: Additional smart contracts facilitate token staking for rewards or participation in non-financial governance proposals, such as roadmap suggestions or updates with respect to risk and credit frameworks.

Off-Chain Risk & Lending Infrastructure

MZF PROTOCOL's off-chain risk engine and debt portfolio management modules form the operational backbone of the platform, combining traditional financial modeling with AI-driven analytics to support data-informed lending decisions. These systems include:

• Loan Origination Platform: This module handles borrower onboarding, credit file creation, legal documentation, and deal structuring. All borrowers undergo strict due diligence, incorporating financial statement analysis, scenario modelling, and stress testing. AI tools assist in automating document extraction, fraud detection, and early signal recognition during underwriting.

• Loan Pricing Engine: Loan pricing is governed by an industry-standard Loan Pricing Formula (see Borrower Credit Risk), now augmented by AI-driven benchmarking and real-time repricing capabilities to reflect changing borrower risk and macro conditions.

• Credit Risk Analytics: MZF assesses creditworthiness using the Debt-to-Cash Flow (DCF) Ratio, categorising risk levels as low, moderate, or high. These assessments are enhanced by AI-powered historical volatility analysis, borrower behavioral trends, and anomaly detection, improving both speed and accuracy in credit classification.

• Servicing System: Monitors borrower payments, default status, and compliance with financial reporting obligations. The system incorporates AI-based delinquency forecasting, enabling proactive escalation workflows and collateral enforcement when necessary.

Oracles & Data Integration

To maintain transparency and real-time responsiveness, MZF PROTOCOL integrates both traditional financial data sources and on-chain oracles:

• Price Oracles: Used to dynamically update collateral values and LTV ratios.

• Financial Reporting Uploads: Off-chain data pipelines ingest borrower-reported metrics (EBITDA, CapEx, taxes, etc.) and convert them into structured insights for internal dashboards and future external reporting.

• Trigger Mechanisms: Smart contract parameters may be linked to external inputs such as LTV thresholds or macroeconomic indicators, prompting platform or risk model adjustments.

Community Access & Risk Transparency

Community engagement is facilitated through a token-gated WhatsApp group, allowing qualified holders of $MZF to access select insights into risk modelling, credit scoring, and portfolio-level exposure updates. While not fully decentralised, this controlled form of transparency ensures stakeholders can observe how risk is assessed, collateral is managed, and reserve buffers are structured.

Participants may view:

• Non-sensitive outputs from MZF PROTOCOL’s risk models;

• Updates to risk weights or credit classifications; and

• Internal frameworks for determining reserve pool adjustments.

This engagement layer is designed to foster trust, demonstrate best practices, and encourage a culture of accountability, even as MZF PROTOCOL retains operational discretion.

Security & Resilience

Security remains a cornerstone of MZF PROTOCOL’s technical infrastructure:

• Smart Contract Audits: Conducted by independent third parties prior to token deployment and upon major updates.

• Role-Based Access Control: Limits administrative privileges within the platform to designated operational, financial, and technical stakeholders.

• Disaster Recovery Protocols: Off-chain data systems are backed up regularly, with clear recovery processes in place to ensure continuity in servicing and borrower engagement.

Scalability & Future Integration

The MZF PROTOCOL architecture is modular and built for scale. It can accommodate growth in asset classes, geographic coverage, and user tiers. Planned upgrades include:

• Integration with Web3 Protocols: For tokenised debt issuance or future interoperability with RWA (real-world asset) infrastructure.

• Lending API Access: For institutional partners or DAO treasuries to allocate capital alongside MZF PROTOCOL’s core debt strategies.

• Automated Credit Framework Extensions: Using AI or rule-based scoring to pre-vet borrowers in select verticals.