• May 28, 2022
• Brú Finance

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,

“We’re finally starting to see use cases emerge that could help crypto and blockchain live up to the financial inclusion hype it initially generated a decade ago. The credit space is an example of that..”

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.

First time in the world, Brú Finance brought farmers (as borrowers), warehouses (as custodians), and banks (as lenders) on a single blockchain Cefi platform. Brú finance has become the world’s largest token issuer in this pursuit, having tokenized agri-commodities worth USD 600 million, 1400 warehouses registered as custodians on the blockchain, and 2 million metric tons of Agri-commodities stored in the warehouses.

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.

Brú Finance unveils “Emerging Market Asset Backed Bonds” on Polygon Testnet

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.

Test URL: https://v2.bru.finance

Product Demo URL: https://bit.ly/bru-product-demo

Steps to test the protocol

Prerequisite:

• 1. Install Metamask:- https://metamask.io/
• 2. Once you install Metamask, connect your metamask to the following sites: Brú.Finance, Polygon, RPC-Mumbai
• 3. Once all these are connected, we are ready to start testing!.

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.

For Borrowing and Repayment:

• Choose the “Borrow” option on the home page to test.
• Find the option to Deposit Commodity. This option mints a dummy asset on which Borrow and Repayment can be tested.
• There are one thousand NFTs to mint against for the test, and more are coming soon.
• Following Minting, find the option to “Borrow” against the same asset.
• Enter an amount to borrow.
• Find the Repay option for the asset you’ve already borrowed against.
• Enter the amount you want to repay and test.

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.

For Buying Bonds and Withdrawal:

• 1. Choose the “Buy Bonds” option on the home page to test from the drop-down on the Header. The user can also go back to the home page and select the “Borrow” option.
• 2. On the Buy Bond page, find the “Add Test USDT to Metamask” option in the drop-down list under “Test.
• 3. Use the “Get Test USDT” option to receive test USDT in your wallet.
• 4. Three option tabs are visible: “Pools,” “Withdraw,” and “My Wallet.”
• 5. Under the “Pools” tab, choose any pool for lending USDT to the pool. Interest rates and other details would be subsequently shown.
• 6. On clicking the “Buy” option, the user gets to buy the bonds by filling in the required details.
• 7. On clicking the “Show bonds” option, the user gets to know about their “Active bonds” and “Mature bonds.” This will help the user know if they can withdraw from a particular bond or not.
• 8. Switch to the “Withdraw” tab to test the Withdrawal functionality. This will depend upon the lock-in period, which is 180 seconds (for test purposes).
• 9. Switch to the “My Wallet” tab to view wallet and token details.

There are two types of Bonds:

• 1. Active bonds -> Active bonds are the bonds with holding period maturity period. The bond buyers can’t withdraw their principal before maturity but can trade these bonds for early liquidity.
• 2. Mature bonds -> These are the bonds that have completed the maturity period and the bond buyers can withdraw their principal.

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,

“Given the latest event in the Defi environment, it is high time to bring real-world assets to Defi for long-term sustainability and avoid risks for lenders and borrowers alike. The algorithmic degen box DeFi has proven to be an unsustainable business model. To avoid such risky events and to make large-scale adoption of crypto, Defi must move to the real world, and that’s what our effort is focused upon. We aim to connect unbanked and underbanked such as farmers, medium and small businesses across emerging markets in the global south who are always looking for capital accessibility with a global pool of capital through Defi.”

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.

Experience our protocol and share your valuable feedback and suggestions here -> Feedback Form

Please join our Discord events and Twitter AMAs to connect directly with our founders and ask your queries.

Discord: https://discord.gg/8C9SZXDy2r

Telegram Channel : https://t.me/bruofficial

Twitter: https://twitter.com/bru_finance

LinkedIn : https://www.linkedin.com/company/bru-finance/