The WHY behind EthicHub

If blockchain's initial promise was to enable a new financial system where no one is left excluded, it is paramount to start by addressing the biggest disfunctions of the traditional financial system.

From EthicHub’s perspective, Traditional Finance (TradFi)’s biggest deficiency was to leave out a quarter of the world’s population, the so-called Unbanked. Most of the Unbanked are smallholder farmers who despite having profitable activities have no access to formal credit. Although there are different causes, the root cause is their lack of eligible collateral.

In 2017, EthicHub came to life and developed financial inclusion solutions fitted for smallholder farmers around the world. By providing them affordable financing in a sustainable win/win model, Unbanked farmers are able to break free from the Poverty Cycle (expensive and insufficient working capital prevents them from saving to invest into improving their productivity).

In June 2018, EthicHub launched its smart contract based crowd-lending platform. It leverages on a global paradox: millions of small farmers paying absurd interest for scarce working capital while people in other parts of the world barely get returns for their savings at the banks. By connecting complementary economic regions, EthicHub’s lending platform generates benefits for lenders and borrowers in a synergic win/win relationship.

After 3 years, with real on-field experience, EthicHub’s team developed a crowd-collateral platform. This de-risking protocol allows to scale EthicHub operations by reducing the perception of risk related to lending to unbanked farmers.

If money is a tool, EthicHub is proving regular people can use it as a superpower to fix an unbalanced world, reducing inequalities and opportunities gaps. Investing in the productivity of the smallholder farmers is not only profitable but also rewarding: the one investment you will never regret.

Moreover, connecting DeFi to the real economy of the farmers at the base of the pyramid brings resilience to the crypto space by generating yields not dependent on cryptocurrencies but on agricultural productive activities.