Dapp Spotlight: Invest in Global Communities with EthicHub
May 5, 2023
TL;DR:
EthicHub is the first DeFi project to connect yield farmers with real farmers, creating an affordable lending system that benefits both lenders and farmers.
EthicHub has provided low-interest capital to over 450 projects with a less than 1% default rate, enabling over $3 million in micro-loans.
From the EthicHub dapp in Valora, you can: invest in agricultural projects for hardworking farmer communities, directly lend funds to farmers or provide Ethix as collateral to secure the loans and stake your Ethix to get rewards.
By linking decentralized finance (DeFi) with the farmers' real economy, EthicHub generates yields based on agricultural productivity, bringing stability and sustainability to the ReFi space.
Disclaimer: The following article is for informational purposes only. It should not be taken as an endorsement, investment, tax, financial, or other advice. The EthicHub protocol is not built or maintained by Valora, nor does Valora receive any payment or other form of compensation from EthicHub. This article simply aims to provide an explanation of how many people around the world are using the Valora wallet to access and explore decentralized applications like EthicHub. As with any Web3 solution, you alone assume the sole responsibility of evaluating the merits and risks associated with using any third-party decentralized application.
What is EthicHub?
EthicHub is a regenerative finance (ReFi) protocol connecting crypto investors to unbanked communities around the world, giving emerging markets access to low-interest capital. In fact, it’s the first DeFi protocol to secure lending by connecting yield farmers to real farmers.
The platform's unique crowd-collateral technology protects loans while lowering investors' risk perception. The EthicHub community purchases $ETHIX tokens and stakes them on behalf of unbanked farmers, fostering a trustworthy environment for impact investing.
Since launching, EthicHub has funded over 450 projects and facilitated over $3 million in micro-loans to over 700 families in five countries.
What makes EthicHub different?
Founded in 2017, EthicHub works to address the financial exclusion of unbanked farmers worldwide.
Small farmers often pay exorbitant interest rates for limited working capital, while individuals in other parts of the world receive little return on their bank savings.
In June 2018, EthicHub launched its smart contract-based crowd-lending platform with the aim of helping solve this global paradox. By connecting these two communities, EthicHub's platform creates a mutually beneficial relationship for lenders and farmers.
After three years of on-the-ground experience, EthicHub developed a crowd-collateral platform reducing the perception of lending risk to unbanked farmers, enabling EthicHub to further expand its reach.
By linking decentralized finance (DeFi) with the farmers' real economy, EthicHub generates yields based on agricultural productivity, bridging stability and sustainability in the ReFi space.
What opportunity do you have with EthicHub?
EthicHub features a Compensation System (CS) that assists smallholder farmers in emerging economies with obtaining loans. These farmers may lack the collateral and support needed for traditional loans, and EthicHub’s goal is to help them by offering liquid collateral in the form of Ethix tokens.
The CS incentivizes Ethix holders to lock their assets into the CS's Smart Contract-based components. While the global default benchmark for this type of loan is less than 3%, with EthicHub, the default rate is closer to 1%. A 4% fee from every loan is then used to increase the number of Ethix within the CS, creating buying pressure and long-term demand for Ethix.
Ethix holders get daily prizes for staking to the CS, which may be withdrawn at any time. Plus, participating in this system means directly contributing to these communities' economic prosperity, food security, and biodiversity.
Whether you’re just dabbling into the world of DeFi or you’re just someone who wants to support causes that are good for the world, your Valora wallet can instantly allow you to tap into new opportunities with EthicHub.
With EthicHub, you can:
Invest in agricultural projects of hardworking farmer communities.
Directly lend funds to farmers or provide Ethix as collateral to secure the loans.
Stake your Ethix inside a general staking compensation pool
Invest in Minimized Risk Yield Bonds with cUSD to get additional rewards. These bonds are fully collateralized by Ethix, making them fully safe and secure. You can also select the value and maturity period of your bond depending on your investment goals.
Connect to EthicHub using Valora
To access all the staking and yield farming features of EthicHub, you will need to connect to Valora. It only takes a few simple steps to set up your Valora wallet.
On your mobile device:
1. Already have Valora? Access EthicHub directly from the Dapps Page.
2. Otherwise, download Valora from the App or Google Play store.
3. Create a new account with your name and choose a unique pin.
4. Connect your account with your phone number.
5. Back up your recovery phrase. (This is important to make sure you can regain access to your funds if you lose or damage your device.)
6. Visit the Valora dapps page from the top left drop-down menu.
7. Tap EthicHub, one of Valora’s featured dapps, to get started. Once you connect your wallet to EthicHub, you can acquire your first Ethix tokens.
On desktop:
1. Go to https://app.ethichub.com/projects
2. Select “Create Account” in the right-hand corner.
3. Enter your details and create an account.
4. Once you create an account, you can start supporting projects in the ecosystem. If you want to use and stake Ethix, you will have to connect your digital wallet, as well.
Join the movement toward sustainable finance
EthicHub is setting a powerful example of how DeFi protocols can help new communities gain access to real financial services.
With EthicHub's staking opportunities, anyone can make a meaningful difference in the lives of farmers around the world.
We have more exciting updates coming soon! Follow @Valora and @EthicHub to keep up with the latest announcements, Twitter AMAs, and more. 🌱
