U.S. Markets open in 1 hr 8 mins

Egoras Protocol Promises to Revolutionize MicroFinance Services for Small Entrepreneurs via Defi

·4 min read

PORT HARCOURT, NIGERIA / ACCESSWIRE / February 22, 2021 / Egoras protocol announces its latest decentralized financial ecosystem that focuses on shortening decentralized finance products for all users in the emerging markets. It is estimated that over two billion people around the globe are unbanked and without any access to financial services to meet their daily needs. Egoras protocol ("the protocol" or "the project") attempts to be part of the solution to this problem by expanding financial access and inclusion to unserved or underserved communities. The protocol achieves its mission by on-chain Governance and a Self-Funding Treasury system.

Egoras protocol is a micro-financing platform that offers non-collateralized micro-credit to small entrepreneurs and enterprises who cannot take shelter of banks for banking and other services. The Egoras ecosystem works on two token; one is EGRUSD, a stable coin and the other is EGR, the governance token. People can access and use Egoras platform in two ways one being as a trader and the other being a liquidity provider.

How Egoras Trumps Over Kiva and Other Micro-Financing Platforms?

Egoras being a decentralized lending platform works via smart contracts and has recently partnered with PAID protocol to utilize its smart contracts for better transparency in its lending and business dealings. The lending platform also trumps over the likes of Kiva, a peer-to-peer micro-lending site similar other platforms that use the terms "peer2peer" and decentralization but in reality operates like a pyramid scheme.

Kiva was reportedly said to be a path breaking micro-finance site where users give money to the platform to lend it to entrepreneurs and in return when the borrower pays back the lenders get the money back. Sounds quite simple, however it turned out less that 5% of Kiva loans are disbursed after they are listed and funded on Kiva's site.

Egoras decentralized nature and use of smart contracts eliminates such potential cases of theft and fraud from the platform's end. The lending service works quite similar to yield farming where users can offer their money in liquidity pool which would be used by the platform to lend money while the payers receive interest rates and returns on their deposited amount.

How Egoras woks?

Egoras protocol promises to lend money to those who can't access it via banks and established institutions at a minimal interest rate to make it possible for them to start a new business or scale a current one. The protocol make use of a stable coin which is used for drawing loans and making payments while the price of the governance cum utility token EGR is variable on the market dynamics.

The governing token EGR has total supply cap of 100 billion at the launch of Egoras Micro-finance protocol V2, with 50 million EGR in market circulation and 40 billion EGR still remaining in the development fund and 50 billion EGR is remaining in Insurance Funds. EGR is required for paying the interest accrued on Loans that have been used to generate EGR in the Egoras Protocol. Only EGR can pay these fees and when paid the EGR is burned, removing it from the supply. This means that if the adoption and demand for EUSD and Egoras Credit system increases, there will be additional demand for EGR so users can pay the fees. It also means the supply will decrease as EGR is burned.

EGR token is used for voting on the risk management on the Egoras protocol where the voter votes on specific parameters for each loan and lending partners. A dapp would allow any EGR holder to easily vote with their EGR by using meta-mask, ledger and fortmatic. More advanced features are planned for the future, such as delegating votes to a proxy voter, and the ability to safely vote with EGR held in cold storage.

EGR token holders can use the platform in following ways,

Connect the wallet and Lock the EGR (governance token) on Egoras lending protocol, Browse by category and find an entrepreneur to support to receive ETH voting rewards.

EGR voters receive two kinds of rewards. Firstly, EGR voting rewards, which are created through the inflationary monetary policy. Secondly, they receive ETH which is generated when the borrowers pay back the loans.

EGR holders are responsible for governing the Egoras Lending Protocol, which includes approving and declining of loans. The EGR tokens locked up during the governance process are returned to the holder 72hrs after the governance process is over.

The Defi has already turned into a multi-billion dollar industry over the past year and just like Bitcoin, many believe Defi would also see a surge in mainstream adoption in the near future especially by banks who would face the biggest risk and competition from the Defi sector. Egoras is one such defi protocols which are looking to avail banking and loaning services to those who cannot access banks on their own.

Media contact

Company: Egoras
Contact: Enyendu Jennifer
Telephone: +2348038238968
Email: cs@egoras.com
Website: https://egoras.org/

SOURCE: Egoras

View source version on accesswire.com: