About EthicHub

EthicHub, founded in 2017, is the first Regenerative Finance (ReFi) solution for the financially underserved: helping them secure lending for sustainable impact.

A crowd-lending backed by crowd-collateral (a Blended Finance 2.0 improvement thanks to using blockchain technology), allows us to back unbanked farmers, connecting DeFi to the productive economy of the real world.

Problem

According to the World Bank, a quarter of the world's population is excluded from the traditional financial system. For these 2 Billion people, the only source of working capital is the small cash loans they can borrow within their own communities, often paying over 100% annual interest for it. 70% of the so-called Unbaked are smallholder farmers living in poverty despite producing one-third of the world's food. This exclusion cuts across all geographic regions and financing types, but is particularly concentrated in long-term agricultural finance, for which 98% of global demand remains unmet (Rural and Agricultural Finance report of 2019, ISF Advisors, 2019).

In her book, “It’s Expensive to Be Poor”, award-winning columnist Barbara Ehrenreich claims that people in poverty are not in that situation because of self-habits but because they simply do not have money at the moment. Indeed, research on this issue has repeatedly highlighted the most persistent obstacles to overcome for smallholders in need of financial resources, ranging from excessive documentation requirements to high account fees and limited access to bank branches.

Solution

Through EthicHub’s protocol, anyone can lend capital to the farmers getting a fix interest rate of 8% return.

At the same time, our community stakes collateral on farmers’ behalf in the form of Ethix to secure the farmers’ loans.

EthicHub also provides farmers with access to added-value markets so they are no longer the weakest link in the supply chain.

By leveraging the power of blockchain technology and smart contracts, lenders from all over the world are able to invest in the productivity of unbanked smallholder farmers, providing them access to affordable capital with minimized risk loans, all enabled by EthicHub’s Compensation System. It provides liquid collateral to the lender’s capital in the form of staking Ethix, our native token.

EthicHub in Numbers (March 2023)