Last Thursday, January 23, our new credit line protocol was inaugurated to operate with EthicHub Credit Originators.
As we have been explaining throughout 2024, the new EthicHub 2.0 version has evolved from a multiple focus on Originator projects with dedicated investors, to an approach in which investors choose which Originator they want to support, by contributing Ethix to their crowd collateral, while the loan with stable cryptocurrencies is now pooled in a common fund to be accessed through the lines of credit authorized to the Originators as a new mechanism to disperse the funds to the cooperatives.
This new protocol has been audited by Red4Sec and has been deployed on the Celo blockchain, where we are also slowly migrating EthicHub 1.0 users.
The first beneficiary of a line of credit has been the Reserva 1920 cooperative, member of La Tribu cooperative association based in the Jaltenango area in Chiapas, Mexico, a region well known for the quality of its coffee.
For now, they have received USD $106,000 on account of the project to purchase the first container in 2025.
We started working with coffee from La Tribu in 2024 and it has been very well received by our roasting customers. Like all EthicHub coffees, it is a specialty coffee, from small producers and agroforestry crops.
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Here you can see the address of the smart contract and even read its code and see the transactions that will be made:
The ID of this line of credit is 0.
We want to promote more coffee purchasing projects like this one, since this way we minimize the risk (the good price encourages them to deliver coffee to settle the debt), optimizing the economic model by integrating the commercial margin and maximizing the impact because there is even more value in a good price than in an affordable credit. The cooperative will end its responsibility on the line of credit when it delivers the coffee and EthicHub will amortize the rest of the line when it sells and collects the payment for the coffee.
If you want to learn more about EthicHub, here is our documentation
He is a strong advocate for blockchain and decentralization, currently serving as CEO of EthicHub.
