> For the complete documentation index, see [llms.txt](https://crowdfunding-ugmbcc.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://crowdfunding-ugmbcc.gitbook.io/docs/platform/how-crowdfunding-works.md).

# How CrowdFUNding Works

This document provides a comprehensive explanation of how the CrowdFUNding platform operates, from user registration to fund withdrawal.

### Platform Overview

CrowdFUNding is a **gamified crowdfunding platform** built on **Base blockchain** that enables transparent, borderless fundraising with NFT achievements.

The platform serves two main user types:

* **Campaign Creators** who raise funds for their projects
* **Donors** who contribute in multiple currencies (BASE, USDC, IDRX)

The following diagram shows the high-level interaction between users and the platform:

{% @mermaid/diagram content="flowchart TB
subgraph Creators\["Creators"]
Create\["Create Campaign"]
Track\["Track Progress"]
Withdraw\["Withdraw Funds"]
end

```
subgraph Platform["CrowdFUNding"]
    Campaigns["Campaign Pool"]
    Swap["Auto-Swap"]
    Badges["Achievement System"]
end

subgraph Donors["Donors"]
    Discover["Discover"]
    Donate["Donate"]
    Earn["Earn Badges"]
end

Creators --> Platform
Platform --> Donors
Donors --> Platform
Platform --> Creators" %}
```

***

### Step-by-Step Process

#### Step 1: User Onboarding

Users can join CrowdFUNding through multiple methods, accommodating both crypto-native and non-crypto users. The platform prioritizes accessibility without sacrificing security.

{% @mermaid/diagram content="flowchart TB
subgraph OptionA\["Option A: Wallet First"]
A1\["Connect MetaMask/Coinbase"]
A2\["Optionally link Google account"]
end

```
subgraph OptionB["Option B: Social First"]
    B1["Sign in with Google"]
    B2["Embedded wallet created automatically"]
    B3["No seed phrase needed!"]
end

subgraph OptionC["Option C: Farcaster"]
    C1["Open Farcaster Frame"]
    C2["Connect with Farcaster account"]
end

OptionA --> Ready["Ready to Use"]
OptionB --> Ready
OptionC --> Ready" %}
```

**Key Benefits:**

* **Wallet First**: For crypto-native users who already have wallets
* **Social First**: For newcomers who don't want to manage seed phrases
* **Farcaster**: For social-first users who value community integration

#### Step 2: Creating a Campaign

Campaign creators start their fundraising journey by submitting a campaign form. The data is split between on-chain and off-chain storage for optimal gas efficiency.

{% @mermaid/diagram content="sequenceDiagram
participant Creator
participant Frontend
participant Wallet
participant Contract as Campaign.sol
participant Backend
participant DB as PostgreSQL

```
Note over Creator,Frontend: Fill campaign form
Creator->>Frontend: Enter name, target, description
Frontend->>Frontend: Validate input

Note over Frontend,Contract: On-chain transaction
Frontend->>Wallet: Request signature
Wallet->>Contract: createCampaign(name, creatorName, target)
Contract->>Contract: Store CampaignStruct
Contract->>Contract: Emit CampaignCreated event

Note over Frontend,DB: Store off-chain data
Frontend->>Backend: POST description, images
Backend->>DB: Insert campaign metadata

Note over Contract,Creator: Confirmation
Contract-->>Frontend: Transaction confirmed
Frontend->>Creator: Campaign is live!" %}
```

**On-chain data**: name, creatorName, targetAmount, owner, creationTime\
**Off-chain data**: description, images, category, social links

#### Step 3: Making a Donation

The donation system supports multiple currencies with automatic conversion to IDRX. This ensures campaign creators always receive a stable, predictable currency while donors can use their preferred token.

{% @mermaid/diagram content="flowchart TB
subgraph Input\["Donor Chooses Currency"]
BASE\["BASE (ETH)"]
USDC\["USDC"]
IDRX\["IDRX"]
end

```
subgraph Process["Auto-Swap System"]
    SwapETH["swapETHForToken()"]
    SwapUSDC["swap(USDC, IDRX)"]
    NoSwap["Direct Transfer"]
end

subgraph Output["Campaign Receives"]
    Balance["Campaign Balance\n(IDRX only)"]
end

BASE --> SwapETH --> Balance
USDC --> SwapUSDC --> Balance
IDRX --> NoSwap --> Balance" %}
```

**Why unified currency?**

* Predictable amounts for creators
* Simplified withdrawal process
* Easy off-ramp to Indonesian Rupiah

The following table shows the exchange rates used for conversion:

| Input Currency | Output (per 1 input) | Rate Source       |
| -------------- | -------------------- | ----------------- |
| 1 BASE (ETH)   | 268,400 IDRX         | MockSwap contract |
| 1 USDC         | 16,775 IDRX          | MockSwap contract |
| 1 IDRX         | 1 IDRX               | No conversion     |

#### Step 4: Earning Achievements

The gamification system rewards donors with NFT badges for their contributions. This adds a fun, collectible element to the crowdfunding experience.

{% @mermaid/diagram content="flowchart LR
subgraph Milestones\["Milestones"]
M1\["First Donation"]
M2\["Donate ≥ 100K IDRX"]
M3\["Donate ≥ 1M IDRX"]
M4\["Top 10 Donor"]
end

```
subgraph Badges["Badges Earned"]
    B1["Pioneer Badge"]
    B2["Silver Contributor"]
    B3["Gold Benefactor"]
    B4["Diamond Patron"]
end

M1 --> B1
M2 --> B2
M3 --> B3
M4 --> B4" %}
```

**Campaign milestones** also trigger badges:

* 25% Funded → "Quarter Way There!"
* 50% Funded → "Halfway Hero"
* 75% Funded → "Almost There!"
* 100% Funded → "Goal Reached!"

#### Step 5: Tracking Progress

Campaign progress is tracked in real-time through blockchain events. The indexer processes these events and makes them available through APIs.

**Dashboard Features:**

* Live donation feed
* Progress bar toward goal
* Donor leaderboard
* Recent activity timeline

The following data flow shows how progress updates reach users:

{% @mermaid/diagram content="sequenceDiagram
participant Contract as Blockchain
participant Indexer as Ponder
participant Backend
participant Frontend
participant User

```
Contract->>Indexer: Emit DonationReceived
Indexer->>Indexer: Update campaign balance
Backend->>Indexer: Poll for updates (30s)
Indexer-->>Backend: Latest data
Backend->>Backend: Update cache
Frontend->>Backend: GET campaign/:id
Backend-->>Frontend: Campaign with latest balance
Frontend->>User: Show updated progress" %}
```

#### Step 6: Withdrawing Funds

Campaign creators can withdraw accumulated IDRX funds at any time. The smart contract validates ownership and balance before executing the transfer.

{% @mermaid/diagram content="sequenceDiagram
participant Owner
participant Contract as Campaign.sol
participant IDRX as IDRX Token
participant Wallet as Owner's Wallet

```
Owner->>Contract: withdraw(campaignId, amount)

Note over Contract: Security Checks
Contract->>Contract: ✓ ReentrancyGuard
Contract->>Contract: ✓ Verify msg.sender == owner
Contract->>Contract: ✓ Verify balance >= amount

Note over Contract,Wallet: Execute Transfer
Contract->>Contract: campaigns[id].balance -= amount
Contract->>IDRX: safeTransfer(owner, amount)
IDRX->>Wallet: IDRX credited

Contract->>Contract: Emit FundWithdrawn
Contract-->>Owner: Transaction confirmed" %}
```

**What can creators do with IDRX?**

* Hold in wallet as savings
* Swap to other tokens (USDC, ETH)
* Off-ramp to Indonesian Rupiah via IDRX partners
* Use for other DeFi activities

***

### Technology Comparison

#### Why Blockchain?

The following table compares traditional crowdfunding with CrowdFUNding:

| Aspect           | Traditional             | CrowdFUNding               |
| ---------------- | ----------------------- | -------------------------- |
| **Fund Control** | Platform controls funds | Smart contract holds funds |
| **Transparency** | Opaque transactions     | All transactions on-chain  |
| **Fees**         | 5-15% platform fees     | Only gas fees (\~$0.01)    |
| **Withdrawals**  | Delayed (days/weeks)    | Instant access             |
| **Geography**    | Geo-restricted          | Borderless donations       |

#### Why Base?

Base was chosen as the blockchain for several key reasons:

| Feature               | Benefit                             |
| --------------------- | ----------------------------------- |
| **Low gas fees**      | \~10x cheaper than Ethereum mainnet |
| **Fast confirmation** | Near-instant transactions           |
| **Coinbase backing**  | Trusted security and ecosystem      |
| **EVM compatible**    | Easy development with Solidity      |
| **Growing ecosystem** | Active community and tooling        |

#### Why IDRX?

IDRX is the platform's unified storage token:

| Feature            | Benefit                           |
| ------------------ | --------------------------------- |
| **IDR-pegged**     | Stable value in Indonesian Rupiah |
| **2 decimals**     | Natural monetary representation   |
| **ERC20**          | Compatible with DeFi ecosystem    |
| **Regulated**      | Compliant with Indonesian law     |
| **Off-ramp ready** | Direct conversion to fiat         |

***

### Security Overview

Security is implemented at every layer of the platform:

{% @mermaid/diagram content="flowchart TB
subgraph SC\["Smart Contract"]
Re\["ReentrancyGuard"]
Safe\["SafeERC20"]
Owner\["Owner Validation"]
end

```
subgraph BE["Backend"]
    JWT["JWT Auth"]
    Val["Input Validation"]
    Rate["Rate Limiting"]
end

subgraph FE["Frontend"]
    Wallet["Wallet Signatures"]
    HTTPS["HTTPS Only"]
end

SC --> BE --> FE" %}
```

The following table summarizes security measures:

| Layer              | Threat              | Mitigation                   |
| ------------------ | ------------------- | ---------------------------- |
| **Smart Contract** | Reentrancy          | OpenZeppelin ReentrancyGuard |
| **Smart Contract** | Token theft         | SafeERC20, owner checks      |
| **Backend**        | SQL Injection       | Parameterized queries        |
| **Backend**        | Unauthorized access | JWT + session validation     |
| **Frontend**       | XSS/CSRF            | CSP headers, secure cookies  |

***

### Summary

CrowdFUNding combines blockchain transparency with traditional platform accessibility:

* **Easy Onboarding**: Multiple auth options for all user types
* **Flexible Donations**: Accept BASE, USDC, or IDRX
* **Unified Accounting**: All funds stored in IDRX
* **Gamification**: NFT badges for achievements
* **Transparency**: All transactions verifiable on-chain
* **Security**: Battle-tested smart contracts
* **Accessibility**: Low fees on Base L2