After the 20th century, sovereignty movements broke out in Africa, which gradually helped the African continent get rid of the label of "colony". At present, there are 54 sovereign countries on the African continent, with a population of nearly 1.5 billion and still soaring. Its GDP is already comparable to that of India, and it is still in a rapid development process. We have seen that consumer fields including technology communications and automobiles are rapidly expanding into the region and seeking to expand the commercial market in this potential area.
Although the African continent is an economy that is in an upward cycle and has considerable potential, the region's economic stability is extremely poor. Most African countries will suffer from extremely severe inflation rates due to unreasonable monetary policies (Egypt is the most typical representative recently), food and energy prices, fluctuations in the international market, and regulatory turmoil. The most representative is Zimbabwe, where the average inflation rate from 2009 to 2023 was 89.10%, reaching a historical high of 837.53% in July 2020. The vicious inflation caused the country's currency to depreciate rapidly. In addition, many regions such as Sudan and Ghana also have extremely high inflation rates.
The most effective way to resist inflation is usually to buy more value-based objects, including gold, US dollars and even real estate. However, due to the level of economic development, financial infrastructure, lack of financial knowledge and awareness, and difficulty in physical access, Africa is one of the regions with the lowest financial penetration rate, especially in the sub-Saharan region known as "Black Africa", where the bank account penetration rate is only about 10%, which means that there are limited ways to resist inflation in Africa. With the general downturn in the global economy and the intensification of the energy crisis, the inflation rate in Africa will continue to soar and aggravate the poverty of the people in Africa.
On the bright side, Xend Finance is further promoting the popularization of finance through DeFi based on blockchain technology and cryptocurrency, allowing users in Africa to use cryptocurrency to resist potential inflation and gain potential income. Aronu Ugochukwu, one of the founders of Xend Finance, is from Africa. He is very familiar with the current financial development status of the African market and what African users desire most.
In the new era of encryption, Xend Finance is also deeply expanding its ecology in the direction of RWA. By introducing traditional assets such as real estate, valuable artworks, stocks and bonds, it aims to broaden investors' expectations of more stable returns, further enhance the inclusiveness of finance, and alleviate the gap between the rich and the poor.
Xend Finance accelerates Web3 expansion into Africa
Initially, there were credit unions and trade unions of all sizes in Africa, but Aronu Ugochukwu mentioned that individual groups provide informal savings for their own common interests, so traditional financial credit unions and trade unions generally have some limitations, including:
Traditional credit unions only have access to a small number of people in a specific area.
Lack of insurance means people don’t have the confidence to participate in the savings cycle.
Credit union members often default on payments, which affects the amount of offline payments and exacerbates credit deficiencies.
Xend Finance is one of the largest blockchain projects in Africa. It hopes to build a set of DeFi facilities (also known as cooperatives) to empower all African users with the right to use finance. Initially, Xend Finance built a DeFi protocol that includes credit, lending, and yield, providing African and global users with a cost-saving way to store money, obtain credit, and earn higher interest income in a decentralized manner, especially those who face high inflation and currency depreciation risks in the traditional financial system.
By adopting blockchain technology, Xend Finance solves the problems of trust and efficiency very well. Xend Finance allows everyone to join, and these users are very scattered and large in number. By using smart contracts to lock each member's payment and enabling flexible payment methods when the payment cycle expires, the default payment rate is reduced. Xend Finance is also able to provide users with decentralized insurance to protect members from any form of asset loss caused by contract breach. Xend Finance credit union members can also earn savings interest by exchanging cryptocurrencies or fiat currencies for stablecoins and locking crypto assets on lending platforms. The annualized rate of return is far more than 15%, and it has attracted more than 150,000 users who use DeFi in their daily activities.
At the same time, Xend Finance is also strengthening Web3 education to drive more users to hedge inflation and make profits through DeFi. By establishing Xend Finance's educational department, Xend Finance Academy, it provides educational articles and videos about blockchain and DeFi to all potential investors to help millions of non-crypto-savvy users join the DeFi and Xend Finance ecosystem.
Africa's financial development is extremely slow and lacks infrastructure, while the more extensive and inclusive Web3 is more suitable for Africa and is a new fertile ground for the development of the Web3 market. Xend Finance has been rooted in the African continent since the beginning, and has now formed a very large user group and has become the most important Web3 facility in Africa. Similarly, Xend Finance joined the Google Launchpad Africa Accelerator and Binance Incubation Program as early as 2021, and received $2.2 million in investment from companies such as Binance, Google Launchpad, NGC Ventures, Hashkey, and AU21 Capital, which is enough to prove its development potential.
In the new era of encryption, we will expand deeply into the RWA field
With the approval of Bitcoin ETF, cryptocurrencies are expected to continue to achieve breakthroughs in the process of becoming global assets and be widely accepted by the traditional financial field. In the new era of encryption, Xend Finance is also deeply expanding its ecology in the direction of RWA to serve as a new bridge connecting the Web2 and Web3 worlds, and it will use its ecological token $XEND
Changed to $RWA to represent further expansion of its strategic direction.
Currently, Xend Finance has deeply tokenized real-world assets in its application, allowing users of Xend Finance to easily access traditional assets such as real estate, art, stocks, intellectual property, own part of these assets, and easily switch between TradFi and DeFi assets within the Xend Finance ecosystem.
We have seen that traditional financial assets themselves lack certain flexibility. For example, U.S. stocks and U.S. bonds may not be so friendly to users outside North America, and high-value assets such as real estate and artworks lack liquidity and have extremely high capital requirements for investors (the minimum investment unit is 1). After these traditional assets are RWA-ized, all investors can participate and access these assets in a more flexible way, which not only brings extensive liquidity and funds to traditional assets, but also brings investors more high-quality and stable investment products.
Through the introduction of RWA assets, Xend Finance is becoming one of the best entry points for investors to access RWA assets in the early stages of RWA development. Based on the Xend Finance protocol, investors can own a small portion of tangible assets with just a few clicks, and allow users to diversify their investments into different asset classes, better manage risks, and potentially increase returns over time, and obtain sustainable passive income.
In addition to targeting C-end investors, through asset tokenization, Xend Finance is also supporting small and medium-sized enterprises (SMEs) to raise funds from a wider liquidity pool of investors (including long-tail investors) and creating more investment opportunities for small businesses in developing economies.
While real estate and stocks are the main assets for tokenization, Xend Finance is also exploring different asset classes to choose from to provide users with the greatest value, thereby creating a fair competitive environment for everyone to achieve financial freedom. Currently, Xend Finance has reached cooperation with some third-party TradFi RWA liquidity projects and companies, including Risevest (a licensed company in the United States and Africa), to provide users with a basis for further seamless access to different asset classes such as stocks, some real estate and even government bonds in the form of RWA.
On the other hand, the transition to tokenized real estate requires a comprehensive understanding of regulatory complexity. In order to further advance the RWA business, Xend Finance complies with the regulatory framework and prioritizes investor protection and market stability. Currently, through cooperation with Risevest and others, Xend Finance has made progress in the direction of equity, ensuring a safe and legal environment for investors.
AI may become a new driver of Xend Finance ecosystem
In order to further capture profits, the Xend Finance DeFi system is currently deeply integrated with AI and has launched the XEND-AI product, which aims to enable its users to make better investment decisions and easily achieve financial goals, while helping users navigate investments in RWA category assets in an automated manner.
XEND-AI is expected to become a real-time, automated investment assistant for users. It can further analyze past data sets of investment assets supported by Xend Finance based on the user's personal investment needs (such as the user's risk preference level, preferred investment asset category, and return target), and further simplify this information in an easy-to-understand way so that users can understand and make wise investment decisions. Based on XEND-AI, it can significantly lower the entry threshold for investors, improve their asset management profitability, and reduce potential market risks.
XEND-AI is becoming a new driver for the development of the Xend Finance ecosystem and will enable the Xend Finance ecosystem to continue to maintain its competitiveness.
Xend Finance, opening the revolving door to the world of crypto finance
Xend Finance initially focused on the African market, which has great potential, and brought new opportunities for users on the African continent to capture income from the financial market and resist inflation. In fact, with the development of the Xend Finance ecosystem in the African market in recent years, hundreds of thousands of users have joined the cooperative and become the first stop to explore the Web3 world. This also allows Xend Finance to rely on a large user base and have a relatively solid value foundation.
On the other hand, we see that credit is driving trillions of dollars worth of business and much of the global economy. The potential for development it brings is huge. Currently, in the DeFi market, more and more protocols are entering traditional credit markets such as equity and debt financing. Although it brings some risks, it is the only way to bring more than 800 trillion dollars of traditional financial markets to the chain. Bridging the huge gap between the crypto market and traditional finance, the tokenization of real-world assets is becoming. The expansion of the Xend Finance ecosystem to RWA and AI narratives, and promoting it in a compliant manner, is becoming an excellent bridge to introduce 800 trillion-scale traditional finance into the crypto market.
This also lowers the financial threshold for C-end users, brings more investment options, further expands the service group to the B-end group, and becomes an important channel for traditional institutions and enterprises to expand their business into the RWA field. In fact, users have full confidence in the development of the Xend Finance ecosystem. Ecological tokens worth more than 10 million US dollars have been involved in staking. With the expansion of ecological narratives and businesses, the new $RWA token will also be deeply involved in the ecological value system and will continue to stand out.
In the new era of encryption, the Xend Finance ecosystem with a new narrative direction is expected to rapidly expand its scale and will be the first to usher in a new round of explosion as the ecosystem expands, further accelerating the operation of the ecological value flywheel.