Port Harcourt, Nigeria / February 20, 2021: Egoras protocol announces its latest decentralized financial ecosystem that focuses on shortening decentralized finance products for all users at the emerging markets. It is predicted that more than two billion people across the globe have no access to banking and financial services to fulfil daily needs. Egoras protocol is a major part of the solution to these issues. It expands financial access and is an inclusion to the unserved and underserved communities. On-chain governance and self-funding treasury system are utilized by Egoras to achieve its mission.
Furthermore, the project is also looking for enhancing the quality of financial services and lessens the cost of services in these communities across the globe. Egoras helps in solving real-life problems like helping people in starting businesses, support small and medium-sized enterprises to access funds for expanding and empowering families to attend the requirements while maintenance of good collateralization on-chain.
Egoras microfinance protocol offers uncollateralized micro-credit to enterprises that cannot use banks for banking and other such micro services.
How Does Egoras Microfinance Protocol Work?
By voting on Egoras Microfinance Protocol, one can give support to the impact-driven opportunities and create good returns.
- Select a borrower: Connect to the wallet and lock EGR on the Egoras lending protocol. Browse by category and look for an entrepreneur for supporting the obtain ETH voting rewards.
- Vote for loan: EGR holders are accountable for the loans on the Egoras lending protocol that includes approval and loan declining. The EGR tokens got locked up during the process of governance are returned to the holder after 72 hours of the governance process gets over.
- Get reward: EGR token holders get two kinds of rewards. At first, they get EGR voting rewards which are made through inflation monetary policy. Secondly, they get ETH which is created when the borrowers pay back the loans.
- Decentralized governance: A community of the EGR token holders is accountable for governance of the Egoras lending protocol, which includes approving and declining loans. The EGR tokens that were locked up during the process of governance are returned to the holders immediately after the whole process gets over.
What Challenges Does Egoras Microfinance Address?
Egoras allows lending loans at a low rate of interest when compared with other mainstream banks. Egoras does not rely on mainstream banks or third party for its loans.
For solving the high-interest rate problems, Egoras protocol introduced chain governance in which the interest rate is determined by the people and there is no involvement of the central body or the company that determines the interest. The users only decide the rate of interest. For addressing the dependence issue, Egoras protocol makes use of an on-chain treasury system to ensure that it does not lack the funds or loan liquidity and these funds are purely governed by the people.
Another important thing is Egoras introduced collateral funding to address over-indebtedness in the whole microfinance sector. In this regard, the small business assets are converted to non-fungible tokens and they signify the collateral. These assets are sold off when the borrower defaults in paying off the loan.
Egoras vs. Other Microfinance Platforms!
Egoras is better than other microfinance platforms like Kiva and others where there is a huge lack of transparency. Kiva creates a person to person and donor borrower connections that are mostly fictional. The case is not the same in the case of Egoras.
If anyone has been researching business loans, he/she might be aware of several downsides like a high rate of interest along with high requirements of borrowers. Kiva tries to fix up these problems through an exclusive crowd funding model. It provides business microloans without claim, and do not have any strict requirements to qualify for one.
But one of the significant things that creates issues is in its mode of work, which is not transparent. Everything is transparent and clear in the Egoras microfinance platform, and there is no chance of any fictitiousness.
Thus, Egoras links anyone to some of the result driven opportunities with the best options and is better than any other microfinance platforms.