🤝Stakeholders
Here you will find EthicHub’s Stakeholder structure and all their respective roles.
Several Stakeholders come into play when enabling unbanked farmers to receive loans at low-interest rates.
The ultimate goal is to rethink the current supply chain to build a sustainable one, where farmers are no longer the weakest link.
Smallholder farmers are the main beneficiaries of EthicHub’s ecosystem.
The goal is to onboard as many farmers as possible to improve their living standard through their own productivity. To achieve this goal, EthicHub works with farmer communities to spread the risk involved when working with individual farmers.
Lenders are Investors who collectively provide working capital by means of stablecoins to fund farmers’ credit lines (loans).
For their support and for providing liquidity to the whole supply chain they benefit from a fixed annual interest.
Collateralizers are Investors who collectively provide collateral to back the loans, providing comfort to the lenders by reducing the risk perception associated with lending capital to smallholder farmers. Because of their role as risk mitigators, collateralizers benefit from a higher yield than lenders.
They can opt for two different levels of risk depending on the chosen collateral pool they back.
Auditors play a key role in validating participant borrowers.
Auditors in EthicHub are entities of proven public reputation (AgTech accelerator, NGO, Development agency, etc) in direct relation with actors working with smallholder farmers in developing countries.
Their role is to refer and audit trustworthy loan Originators that are aligned with EthicHub’s mission and vision and comply with its onboarding requirements. To have skin in the game, Auditors have to stake collateral on behalf of their referred Originators. As part of the incentive loop design, they get a fee from the loans they referred.
EthicHub’s founding team performed as the first Auditor and currently HEIFER INTERNATIONAL is the second one.
Investing through EthicHub is open for anyone unless regulation in their country (China, USA) prevents them from, but borrowing is by invitation only.
EthicHub tokenomics model is based on Trusted Circles and Game Theory on blockchain.
High quality Origination is EthicHub’s cornerstone.
Loan Originators are in direct contact with smallholder farmers and are responsible for paying the loans back.
They are not financial intermediaries because a sustainable supply chain requires all its links to add value in order for the small farmers not being the weakest link. Originators are farmers’ service providers, and thus, an instrumental part of a sustainable supply chain.
Their role is to provide EthicHub with high quality/high impact agro-projects in need of funding, mainly for production, processing and export purposes.They are responsible for selecting trustworthy farmers who will directly benefit from being part of the agro-project.
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