Brú Finance Overview

What is Brú Finance?

A decentralized P2P social impact bonds platform that connects liquidity providers in developed markets with high yield accruing emerging market debt secured by tokenized assets. The platform aims to create a global financial system ecosystem built on economic rationale instead of pure speculation.

Main Features
Fractional ownership of bonds
Tokenization of assets
Borrowing against tokenized assets
Secondary market for tokenized assets
Bonds backed by commodities worth 140% of the bond value
Blockchains
EthereumPolygon

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Frequently asked questions

Brú Finance is a platform that leverages decentralized finance (DeFi) to create a global commodity finance market. It offers innovative fractional bonds backed by agricultural commodities, allowing liquidity providers to subscribe to 6-month tenure bonds that generate superior yields with the security of highly liquid collaterals. The proceeds from these bonds are used to provide short-term loans to participants in the commodity supply chain, such as farmers, traders, and processors. Brú Finance also allows users to conduct transactions on-chain, tokenize their assets, borrow money against tokenized assets, and create a secondary market for tokenized assets. It aims to eliminate fraud risks in commodity finance through its proprietary blockchain solution. The minimum investment amount is $1000, and the minimum lock-in period for investments is 6 months.

Brú Finance promotes financial inclusion by using blockchain technology to link lenders to high-yield securitized farmer bonds. They enable fractional ownership of bonds, making it more accessible for retail lenders to subscribe to bonds securitized by real-world assets. This approach lowers the barrier to entry and allows even low net worth individuals to provide loans, thereby boosting the liquidity of commodity-backed bonds. Brú Finance also focuses on un/underbanked communities in emerging markets, allowing liquidity providers to earn a return on their savings while positively impacting the livelihoods of communities needing short-term financial assistance.

Brú Finance solves the problem of limited access to financial services for farmers. Many farmers, especially in rural areas, are cut off from traditional financial institutions and rely on moneylenders who offer loans at high interest rates and arbitrary terms. This lack of access to capital immediately after the harvest often forces farmers into distress sales to obtain funds for the next sowing season. Brú Finance addresses this issue by allowing farmers to tokenize their commodities and obtain instant loans from their liquidity pool. This enables farmers to access capital without relying on moneylenders, creating a positive social impact in rural economies. Additionally, Brú Finance's decentralized governance model helps mitigate environmental challenges such as grain wastage.

The minimum investment amount on Brú Finance is $1000.

The countries restricted from using Brú Finance are China, Iran, Russia, North Korea, and any other person, entity, or country on the OFAC sanction list. Additionally, residents or citizens of the United States of America (USA) who do not qualify as accredited investors as per the regulations applicable in the USA are also restricted from using the platform.

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