Egoras, Perfect Defi Micro-Finance Solution For Medium and Small Enterprises

Medium and small enterprises around the globe face a major financing problem due to the collateral issues and limitations of the banking system. Taking out a loan or financing their business becomes next to impossible especially in developing nations where banking facilities are concentrated in a selected few, this is where the defi platform Egoras comes in as a perfect solution.

Defi over the past couple of years has emerged as a growing solution for most of the micro-financing issues through automation and smart contracts. Egoras built on top of the Ethereum network eliminate the core issue with financing i.e collateral. Most of the small and medium enterprises don’t have the necessary collateral to gain banking facilities.

Egoras Defi MicroLending Services to Revolutizine Micro-financing for Enterprises

Microlending organizations facilitate small business loans from individuals to small businesses and new startups. The concept of microcredit was built on the idea that skilled people in underdeveloped countries, who live outside of traditional banking and monetary systems could gain entry into an economy through the assistance of a small loan. The people to whom such microcredit is offered may live in barter systems where no actual currency is exchanged.

The structure of microcredit arrangements frequently differs from traditional banking, wherein collateral may be required or other terms established to guarantee repayment. There might not be a written agreement at all. Each potential borrower receives a credit rating. The lending platform calculates this using their real-world credit history, any assets they own, and their commitment to repay any previous microfinance they borrowed through the same site.

The result is a rating system that identifies high-risk applicants and those most likely to repay in full and on time. However, because there is less security in microfinance investing than there is in traditional bank loans, the interest rates paid by the borrower tend to be higher.

Small and Medium Enterprises to Benefit the Most

Egoras microfinance protocol provides uncollateralized micro-credit denominated in EUSD to small entrepreneurs and enterprises who cannot take shelter from banks. Egoras token holders assess the creditworthiness of the loans, and they earn attractive APY for their activities. Egoras is actively following the path of true decentralization putting control in the hands of the community.

To solve the high-interest rate problem, Egoras protocol introduces on-chain governance where the interest rates are determined by the people, in which no central body or company determines the interest. In other words, the users determine the interest rate. To address the dependence issue, the Egoras protocol uses an on-chain treasury system to make sure that Egoras protocol doesn’t lack the funds or liquidity for the loans and these funds are governed by the people.

Finally, the Egoras protocol introduces collateral lending to address over-indebtedness in the microfinance sector. In this regard, small businesses’ assets will be converted to non-fungible tokens and they represent the collateral. These assets will be sold off when the borrower defaults in repaying the loan.

Egoras had raised $1.3 million in private funding round recently and would utilize the raised funds to continue expanding the micro-financing protocol on Binance Chain now.

To learn more about Egoras visit

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