Web3 for RWA

Transcript

foreign I'm Gabriela Chang CSO I'm co-founder of Epic Hub and I am very happy to be here in Paris again to share about one of my favorite topics web 3 for real stuff so let's start talking about real world assets there may not be a consensus on what real world assets are but I think after the pandemics no one disagrees healthy food clean water and fresh air are some of the world's most valuable assets

so using blockchain to secure them is Paramount sometimes with the sheer excitement of new tools we forget about their purpose and we just play they say that's because mammals learn by playing but after the sheer excitement and joy of cryptokitties boar Apes MIP coin meme coins I think it's about time to go back to the basics to blockchain's initial promise to enable a financial system where no one is left excluded remember King Midas we cannot eat drink or breathe money money is just a vehicle for well-being

and the current system is excluding almost 2 billion people from this well-being that hurts everybody on the planet because that's a lot of human beings living in scarcity in some of the most vulnerable and greenest areas of the planet because 70 percent of the unbanked are smallholder farmers producing one-third of the worst food we are killing the golden egg hands the system because 1.2 billion farmers are trapped in the poverty cycle despite having productive activities a lot of people think banks

don't lend them because they are poor but reality is the opposite way they remain poor because they are unable to access the financial system so their only source of working capital is a small cash loans they get from Shark loans often paying more than 100 interest for this little money and condition to pay it back with the Harvest on low prices some European Banks working in Latin America give money even with higher rates than 100 actually the it is 142 percent and that's legal but farmers are not eligible because most microfinance institutions need you to pay them every

week or every month and if you have a long year cycle you cannot do it because you have only one window of liquidity in the year and that doesn't make sense because for example coffee which is one of the most traded Commodities in the world 80 percent of the global production of coffee is in the hands of small farmers with only two hectares of land this is a huge problem but also a huge opportunity a business opportunity because the Global Financial need it's almost one trillion dollars and they are very good payers even if there's no record to prove it so evidently there's interest into

addressing the unbanked markets but the current fintech approach is based on data to create credit scoring or assets to act as collateral but millions of small farmers don't have Wi-Fi so they don't have collateral and their tiny lands are of no commercial interest because they are in the middle of nowhere that's why ethi Hub designed a third way we call IT Crowd collateral and it's built on web tree to act as a tokenized blended Finance to back the loans of these farmers sorry so

sorry sorry to back the launch so they are backed by a new word asset it's called reputation so the perception of Rex the default rate for Farmers is less than one percent but people doesn't know it so because the perception of risk is way higher than the actual risk we build two complementary Platforms in one the lenders can invest into the farmers to finance their productive activities and exports because the stakers provide them Comfort by back in the launch with the with the token so this is Jill Farmers back in actual Farmers the key is to

create the proper incentives for the benefit all the stakeholders we created a global community that benefits from interacting and here it's very important to think of that blockchain is not a mere front end to do things more efficiently more transparent no this is the opportunity to build a whole new back end where the value of social economic and environmental impact is represented in ways that were impossible before how it works there's a landing pool to finance The Cooperative of farmers that have been selected and there is a compensation system that kicks in in case of the fault

it works we are very proud to say that it's been working for five years and we have less than one percent default and even this small default is covered by the compensation system this means 100 of the lenders have recovered their principal plus the interest so we have a recognized and grounded tokenomics because we have provided collateral for under collateralized loans by providing three sources of capital four percent for every loan 40 from Originators and Auditors and sixty percent from the the community

but this as I say this is a very sturdy system to cover from default but what happened when farmers are good payers this is the bright side of or tokenomics because this is the positive side the farmers get access to higher line of credits without increasing the collateral because now it is fed by their reputation so these are our tokenomics from 100 millions that were created 50 is locked in the compensation system reserved because the main utility of our token is to serve as collateral for the loans of the farmers then five percent was sold to build the platform

the companies and the teams are vested long term and the remaining 25 percent is uh inflation to promote the behaviors for for the platform to rewire the stickers and so the ethics is the Cornerstone of our system because a trustworthy platform attracts investors the bigger the volume of interactions the more demand for the token to be locked in the compensation system so it makes the platform more secure and it completes uh we are very proud of being part of a bill on building a collective ecosystem where all the participants add value to

it it's it's a collaborative system and we need to put together efforts and make business together in order to to move forward uh we are we have a recognized as they say tokenomics and the impact we've done if it sounds too good to be true we have lots of hours and recognitions about our triple impact and the tokenomics in ADBA which is the global entity of blockchain that advises the European Union recently awarded Us best for generative Finance project and hey for international which is one of the biggest NGO working on reducing alleviating poverty through agriculture

just signing out a partnership with us we are very proud and happy to be part of the refi Community because we think we need to do efforts together to move forward and solve some of the world's most pressing problems we focus on web3 for impact because as I said at the beginning there's a pressing urgency to to solve these problems and I will uh okay this this represents the difference between two types of Agriculture two ways of relating to Nature in the in this one you can see coffee production intensive coffee

production in Brazil where they have the privilege of having Flatlands in the High Altitude so it can be automated and produce coffee with intensive use of pesticides and fertilizers but this is a green dessert there's no biodiversity it's bare soil so the other the other picture I took it myself that's shade grown coffee where coffee trees are sheltered Under The Canopy of taller trees that shelter biodiversity water retention and climate resilience because agriculture is key for climate change what kind of coffee would you like to drink

hmm sharing but Financial inclusion is only part of the fair system we're building because the farmers are also excluded from carbon credit markets and certifications because they are too small because the system is not built to address the small scale so we are looking for partners to come together to better solutions to incorporate this and to create new forms of value um it is said that what box money is considered valuable so we need to leverage on blockchain to get new representations of the value produced by the farmers like if they were able to get a decent living

out of the lands and the services they provide to the planet they wouldn't migrate they wouldn't need to migrate to the United States or to Europe um so we invite you to join us and to keep building a new economic system and to consider as I was saying the other forms of value like tokenizing crops social impact or biodiversity hmm we need to join and collaborate web 2 it's about competitors web 3 it's about collaborations we've been solving real world problems almost bare hands so now we want to count on you so please scan this and keep on on this conversation it

has never been so easy to generate so much impact together thank you very much [Applause] we have just time for one quick question thank you okay let me just give you the mic so the computer hi thanks for the talk what's the default rate of the loans in our platform less than one percent actually 0.7 and as they say in blockchain don't trust verify you can check or talk or token as behave even in Beer Market has behaved even better than most of them thanks and was here like total amount of loans

right now the outstanding debt is almost 1 million three hundred the accumulated it's more than 3.5 Millions with more than 600 families benefited from from it in six countries now and we are looking for Partnerships to expand we're talking with Grassroots economics to go to Kenya for example we are focused on Latin America for now it's Mexico Brazil Honduras Colombia equator and Peru but the problem is worldwide it's southeast Asia Africa and Latin America thank you very much [Music]

[Applause] [Music]