EthicHub
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Stakeholders
Here you will find the stakeholder structure in EthicHub and all their respective roles.
Several stakeholders come into play when enabling unbanked farmers to receive loans at low-interest rates. The picture down below aims to provide a visual representation of the synergies between all stakeholders and their respective role in the ecosystem.

Farmers

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

Lenders are low risk profile investors who provide working capital by means of stablecoins (xDAI) to fund farmers’ loans and are covered by the compensation system. First users were retail on a P2P model but we are moving to pool lending. This lending pool will mint tokenized NFT bonds (MiniMice bonds) to lenders with a fixed interest rate and term and with Ethix trust-less overcollaterization.

Stakers

Stakers are high risk avert investors who provide collateral in the form of Ethix to minimise the (perceived) risk associated with lending capital to smallholder farmers. Stakers can opt for different levels of risk depending on the chosen staking pool, so rewards (APY) varies. This will be explained in the Compensation System section.

Auditors

An Auditor at EthicHub has to be an entity with a proven 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 Ethix as collateral on behalf of their referred Originators in exchange for a fee in each loan. These Ethix will be locked in a specific pool for each Originator. Initially the percentage of collateral to be staked by Auditors has been set as 20% of the amount to be borrowed by its referred Originator. In the future, EthixDAO will adjust this parameter.
Initially, EthicHub’s founding team performs as the first Auditor. In the future, EthixDAO will curate and vote for Auditors.
If you fit in this profile kindly contact us here.

Loan Originators

High quality origination is EthicHub’s cornerstone. Loan Originators are in direct contact with smallholder farmers and are responsible for generating the projects for the lending platform. 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.
Regarding those who want to become a Loan Originator, their project’s value proposal needs to be aligned with EthicHub’s and it has to be backed by an approved Auditor. To have skin in the game Originators have to stake collateral in the form of Ethix tokens equivalent to a percentage of the amount they want to borrow. Initially, this percentage has been set as 20%. Those Ethix are locked in a specific pool assigned to the Originator. In the future, EthixDAO may adjust this parameter.
As of Feb 2022, EthicHub’s team operating in Mexico became its first Originator, followed by pilots in Brazil and Honduras.
Loan Originator onboarding process Together, Stakers, Originators and Auditors cover the 100% of the collateral required to apply for a loan at the lending platform. This collateral is locked in a specific pool for each Originator. To align proper interest, in this pool only the tokens from Stakers receive inflationary daily rewards (APY) as an incentive for backing the Originator. Initially such Stakers’ tokens (Ethix) account for 60% of the collateral for the Originators loan. In the future, EthixDAO may adjust this parameter.

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Esquema
Farmers
Lenders
Stakers
Auditors
Loan Originators