If you haven't read or heard the word yet ReFi, it won't take long for you to do it, like any powerful idea, ReFi It is penetrating minds and spreading in the same way that mycelium does across the forest floor, becoming linked and rooted in a movement that seeks to change everything.
ReFi is rooted in the theory of regenerative economics, which seeks to create systems that restore and maintain natural resources essential for the well-being of all.
These resources, which are the key to our existence, are being rapidly destroyed by our current economic paradigm, which is not valuing the fundamental role that these essential assets play in the development and maintenance of our society, which generates a series of negative externalities, such as emissions of harmful gases, the destruction of terrestrial and maritime ecosystems, and social inequalities throughout the planet.
ReFi aims to be the answer to the great global problem, rethinking the fundamentals of the economy through technology, new organizational models and a regenerative consciousness that catalyzes a new era of prosperity through a renewed financial system that meets the needs of people and the planet.
To this end, several key issues must be addressed:
Como Tomer Bariach described of Flori Ventures in a recent interview in ReFi Podcast, “money is an excuse used by many to behave in a way that reflects our rational self-interest that occurs at the expense of other people and the planet”.
Therefore, if we create a just, equitable, diverse and inclusive system, we will discover that the choices we make benefit the many rather than the few, both the earth and humanity.
Why Celo
When we think about technology to carry out ReFi, we cannot fail to mention Celo, a blockchain Negative carbon layer1, thanks to its automatic purchase of compensations through the Wren Project, designed to be accessible by anyone anywhere in the world via a mobile phone.
Regardless of its technical specifications and scalability (link), Celo brings to the world of blockchain a clearly differentiating element, its mission: _To build a financial system that creates conditions of prosperity for all.
The financial system that Celo wants to help build revolves around three sources of value that are not properly accounted for in the current system:
The orientation First Mobile Of the blockchain de Celo helped him gain a leadership position in emerging markets, which is crucial to his mission and an enormously important piece of the puzzle of ReFi.
The firm conviction that programmable money can and should be used to design new financial systems that have a positive impact on the planet put him at the center of the movement. ReFi, which helped to catalyze. The community that creates regenerative applications in Celo is and will continue to be your competitive advantage in a world Multichain.
Alexander Moreno is an honest coffee farmer who works the land, just as his ancestors did. Like many others in his country, he has to face loans of more than 5% interest, with the obligation to leave part of his assets as collateral, for which he only receives 40% of the mortgaged value as the total amount of the loan. A poor harvest, a change in weather conditions, a plague, and Moreno will end up losing part of the heritage that he and his ancestors have achieved after years, even decades, of hard work.
The EthicHub network is deployed in nodes, they are local human nodes, responsible for organizing producer communities, such as Moreno, informing them of the operation of the platform and joining them to the project. The human factor is essential in this technological framework, people involved in the project, responsible for channeling investors' money to productive tasks.
These small investors participate in agricultural activities by financing them through Crowdlending (https://www.ethichub.com/en/what-is-it-and-how-does-it-work), so that producers benefit from fair interests, while investors receive a return on small amounts invested.
The technology blockchain makes it possible to fragment the capital to be invested and to control it efficiently, facilitating access to new investors.
Another advantage of this technology is to use the tokenization of loans acting as collateral for them, using the Ethix token, which generates more confidence in investment. In the event of default, Ethix would act as a guarantee to compensate investors, 50% of the issue remains involved in the compensation system.
Therefore, we have two ways to participate and support these crucial projects to combat climate change, social justice and the economic development of small farmers. One through direct participation in the loan to producer families, the other providing guarantee coverage to these loans through the acquisition of Ethix.
In addition, they have recently launched a collection of Social Impact NFTs, by photographer Stefano Azario, to rehabilitate schools in danger of collapsing in communities.
https://doingud.com/@ethichub? tab=collaborations
10 copies of 10 photographs of the artist are now available in Doingud, where, from each sale, 50% of the profits will go to the cooperative SPR Cosechando Riqueza (Chiapas, Mexico). Among all the people who participate in the initiative and hold an NFT, a trip will be raffled to meet the communities with which they have collaborated.
Preserving Moreno's way of life, agricultural use and the communities where it develops, has been EthicHub's task since 2018. These farmers were already using permaculture before this word was known, just as EthicHub already did ReFi before the concept became fashionable. There is nothing more ReFi than protecting the earth's traditional work, those who do it, and its environment. That's why EthicHub had to reach Celo. Welcome!!
EthicHub is a ReFi (Regenerative Finance) protocol that helps unbanked farmers access capital at low interest rates in a win/win model where all stakeholders benefit from the interaction. Its crowdlending platform was launched in June 2018, and to date it has brokered more than $4M in microcredits to more than 600 families in 6 countries.
