Connecting DeFi to real world economy
EthicHub is a ReFi (Regenerative Finance) protocol helping unbanked farmers access capital at low interest rates in a win/win model where all stakeholders benefit from interacting. Its crowdlending platform was launched in June 2018, and to date (January 2023) it has intermediated over $3M in micro loans to more than 600 families in 5 countries.
EthicHub’s innovative crowd-collateral secures the platform's loans, creating a de-risking system to reduce the perception of risk when investing in smallholder farmers in emerging economies. EthicHub’s community buy the $Ethix tokens and stake them on behalf of unbanked farmers, enabling a trustful environment for impact investing, because in case of a loan default the Compensation System is able to pay back the lenders not only their principal but also the interest.
Global default benchmark for this type of loans is less than 3%. Over the last four years, EthicHub has financed more than 450 projects with a default rate close to 1% where 100% of the lenders have received their invested capital plus interest. EthicHub is already operative in Mexico, Brazil, Honduras, Colombia and Ecuator and is continuously looking to expand its scope to new markets and continents.