Brú Finance launched a TradFi-DeFi Web3 bridge, offering Emerging Market Asset Backed Bonds on the Polygon Testnet to provide financial services to vulnerable sectors of society. The tokens will be issued through a decentralized platform that allows farmers to use their harvest as collateral for credit.
One Step Closer!
Having started our Blockchain CeFi journey two years back to create last mile financial connectivity to the farmers of India, Brú finance is pleased to announce that our attempt to create a CeFi-DeFi Web3 bridge is one step closer to its destination.
Financial inclusion is the key driver of economic welfare and social upliftment. Defi has emerged as a powerful technology with the potential to create last-mile financial connectivity if we build on it with the right objectives and focus on the vulnerable sections of society that have traditionally been left high and dry by the TradFi institutions.
Matt Homer of the New York State Department of Financial Services explains,
Brú Finance’s journey started two years back to create a financially inclusive ecosystem and provide easy-to-access financial services to 1.7 billion unbanked and underbanked population across the globe. We started this mission with the farmer community in India and launched a Blockchain-based Cefi platform to connect farmers with the Banking ecosystem. The blockchain-based Cefi platform tokenizes Agri-commodities stored in a decentralized network of custodian warehouses and allows farmers to be part of mainstream financialization by allowing them to use their harvest as collateral.
To fulfil the mission of financial inclusion and democratizing financial services, it is crucial to harness the power of Defi and connect it with the existing Cefi platform. The Defi protocol will connect farmers with a global capital pool and provide them with a swift and sustainable source of credit against their tokenized Agri-commodities.
The team has worked relentlessly to develop this Defi protocol in the past few months. We are super excited to announce that we have achieved an important milestone in this journey.
Polygon was a clear choice due to the low transaction fee and superior security of the Ethereum blockchain. We are working for financial inclusion, and many of the transactions are low ticket size; hence to make it user-friendly, it is vital to keep the transaction cost in check, and Polygon is best suited for this requirement.
Real-World Assets (RWA) are the physical assets that carry an inherent value because of their attributes; these include precious metals, infrastructure assets, land, commodities, etc. By introducing RWA on DeFi, Brú Finance opens up a significantly more enormous market for the DeFi ecosystem, connecting 1.70 billion unbanked/underbanked people to a new source of financial capital.
Brú Finance surmounts these obstacles faced by Decentralised Finance by creating a bridged ecosystem of DeFi and TradFi, facilitating lending against tokenized, on-chain Real-World Assets.
We invite the community to be a part of this journey. Please test the protocol, do the test transactions, and share your ideas and feedback.
Users can be lenders or borrowers when interacting with the Brú Finance platform.
On clicking the “i” (information icon), besides both the options, you can read — what being a lender and a borrower on our platform means.
Borrowers are the commodity/asset holders who have stored these assets in the physical warehouses in India, get tokenized, and reflect on the blockchain as NFTS.
On this page, the user mimics the behaviour of an actual farmer.
As lenders, users can invest their stable coins to buy bonds from the platform. These bonds are backed 140% by high-yield emerging market assets (RWAs) and are over-collateralized.
Every borrower has a repayment period, and every lender has a maturity period.
On this occasion, our CEO, Ashish Anand, has a message for the community. Ashish said,
We are just getting started with the Polygon testnet launch. We are working non-stop to build a financially inclusive ecosystem powered by real-world assets on Defi. Watch this space for more updates and be a part of our journey as we prepare ourselves to launch on mainnet.
Please join our Discord events and Twitter AMAs to connect directly with our founders and ask your queries.
Telegram Channel : https://t.me/bruofficial