EthicHub — a ReFi (regenerative finance) protocol, helping non-bank farmers to access capital at low interest rates. Since its inception in 2018 and as of May 10, 2022, EthicHub has provided over $2 million in loans and is helping over 1,250 families in 21 communities.
About the EthicHub project
A feature of EthicHub - the collective pledge that it has created along with its community. The EthicHub community, which buys the $Ethix token and stakes on behalf of non-bank farmers, allows farmers to attract more investors to invest in their projects.
Work features:
| 1. | Over the past four years, Ethic Hub has funded over 340 projects and kept the default rate below 1%, i.e. at 0.7%. |
| 2. | The average global default rate for this population is around 4-5%. |
From the point of view of EthicHub, the biggest drawback of traditional finance (TradFi) was that they did not take into account a quarter of the world's population, the so-called non-banks. Most of those, who do not use banking services, are small farmers who, despite their profitable activities, do not have access to official credit.
In 2017, EthicHub developed financial inclusion solutions for small farmers around the world. By providing them with affordable finance in a sustainable win-win model, unbanked farmers can break out of the cycle of poverty.
In June 2018, Ethic Hub launched a crowdlending platform, based on smart contracts. It relies on a global paradox: millions of small farmers pay absurd interest on meager working capital, while people barely make a profit on their bank savings in other parts of the world.
After 3 years, with real field experience, the Ethic Hub team developed a crowdfunding platform. This risk mitigation protocol allows EthicHub operations to scale by reducing the perception of risk, associated with lending to non-bank farmers.
Ethix token
EthicHub's native token, an ERC-20, called $Ethix (Ethix), maintains an incentive cycle. This will benefit all stakeholders in its impact ecosystem and shared value creation model. Ethix's main function - to provide collective collateral to secure funding for small farmers, excluded from the traditional financial system. Eliminating the risk perception, associated with this borrower profile by providing liquid collateral for loans, will increase the financial resources, available to them.