Problem
Sub-Saharan Africa has one of the highest inflation rates in the world.
Individuals and Families saving money in their local currency do not have an easy way to guard their life savings against devaluation.
Businesses that make purchases in USD and sell in their local currency sometimes run into a loss when the value of the dollar goes up, and they have to repurchase the same goods at a higher amount than they sold it equivalent to their local currency.
Source: https://www.imf.org/external/datamapper/PCPIPCH@WEO/OEMDC/SSQ
Case Study
| - | - |
|---|---|
| Country | Nigeria |
| Inflation | 17.75% |
The Naira has devalued drastically in the last 12 months, from USD 1 = 360 NGN to as high as USD 1 = 500 NGN at one point in time.
A Fixed income earner saving N20,000 monthly at ($1 = N360 ) in the last 12 months.
Would have saved a sum of N240,000 which is suppose to be equivalent of $660 but instead will be worth only $500 at year end. Resulting in a huge loss of $160 in value of money due to current inflation rate.
Solution
A Defi savings platform without the need of an ethereum client such as Metamask, that allows anyone to save in a much more stable currency such as the US Dollars, by leveraging on Stable cryptocurrencies such as USDT and generating interest on savings by Staking in a Lending platform such as Compound protocol or Venus protocol.
- Built on Binance Smart Chain with Low gas fee
- No technical knowledge of how to use ethereum clients
- No central organization holds users funds
- Policy such as the Central Bank controlling number of dollar circulating in the economy won’t affect users
Awards
Binance Hackhaton Winner 2021 (Defi Prize)
