Bru Finance

CeFi-to-DeFi bridge with "Real World Assets" and social impact.

The current DeFi space is focused on highly over-collateralized digital assets and serves only a small set of crypto native population either looking for high yield or borrowing against crypto holdings. That leaves 7 billion people out of DeFi space who earn, invest and hold assets in real-world assets.

Having built a Blockchain infrastructure being used by Government Institutions and Banks today to lend to farmers (not the yam & sushi types), having tokenized commodities worth $500 Million stored in warehouses owned by the government, and having issued digital CeFi loans against that, Whrrl (https://www.WHR.loans) is now extending its technology to create a decentralized platform for lending against tokenized real-world assets through our DeFi project “Bru Finance (https://bru.finance).

This decentralized lending to farmers will help increase farmers’ realizable income by upto 40% by helping them avoid distress sale and free them from the clutch of usurious moneylenders thereby creating financial inclusion & social impact at a very large scale.

Bru Finance channelizes decentralized finance to real-world assets (commodities) that are stored in accredited warehouses with the custody being established through an on-chain “Commodity Deposit Receipt (Warehouse Receipt)”. Bru Finance creates non-fungible tokens (NFT) against these real-world assets and people across the globe can lend against these tokenized warehouse receipts. The collateralisation ratio is 143% (Loan-to-value – 70%) and rate of interest is fixed @10% p.a. for borrowing and 7% p.a. for lending. Bru charges a fee of 0.25% for transactions.

The major challenge we faced during the hackathon was the non-availability of the price feed of agricultural commodities natively in Chainlink. Hence, we had to use their External Adapter and Advanced APIs that helped us fetch price data from a commodity exchange in India directly in our smart contracts, even though direct data feed was not available through chainlink.

Having brought Real World Assets financing to Ethereum testnet, we are looking forward to soon launch Bru Finance on the main net with all types of real-world assets (Commodities, Precious Metal, Invoices, Arts etc.) being part of the collateral pool to be lent against by a global pool of capital.