Komal Joshi · Dec 5, 2020 . 6min read
XEND Finance backed by Binance Labs releases DeFi Credit Union targeting local cooperatives
With Xend's DeFi Credit Union offering built on Binance Smart Chain, members can earn up to 15% annual percentage yield on their savings.
By Victor Ugochukwu · Nov 4, 2020 . 5min read
From the heart of Africa, Nigeria to be specific, Xend Finance is braving the odds by decentralizing credit unions and cooperatives with its DeFi Credit Union.
Xend Finance is backed by Binance Labs as well as other reputable firms like Google Developers Launchpad, AU21 Capital, Ampifi VC, JUN Capital, TRG Capital, and Sandeep Nailwal (Matic Co-founder) and a few others. These organizations helped contribute to Xend’s $15 million strategic funds raising round.
Although Xend finance focuses on making the global money market accessible to almost anyone who wishes to save and invest in stable currencies, it intends to pursue a specific niche market; Credit Unions and Cooperatives.
Hence, using Xend Finance’s DeFi Credit Union, users can create their credit unions and cooperatives. Clearly, this has lowered the barrier of entry in this market as it sidesteps the middlemen. And with a Credit Union and Cooperative offering, members can earn up to 15% annual percentage yield on their savings on the Xend’s DeFi Credit Union.
Xend Finance’s DeFi Credit Union can help users to convert to stablecoin, which they may then stake on the protocol. It also plans on releasing the XEND token, for protocol governance in the future. Aronu Ugochukwu, CEO of Xend Finance had this to say
“Traditional credit unions have a number of limiting drawbacks, including only 1% annual percentage yield returns,… Unlike credit unions, Xend Finance is not limited by geographic location, low liquidity, or absence of deposit insurance. Our groundbreaking technology fixes these problems and is safe, secure, open to all, and transparent.”
DeFi Credit Union is the first decentralized protocol from Africa to leverage Binance Smart Chain.
Xend Finance opted for Binance Smart Chain to build DeFi Credit Union. Although it didn’t expressly state this, it’s probably for the Binance Labs support in funding. Also, BSC offers developers a series of incentives to build on it asides the cheapness in user transaction fees.
It’s also the first DeFi platform from Nigeria building atop Binance Smart Chain which keeps pushing to attract developers.
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Victor Ugochukwu · Dec 4, 2020 . 5min read