Collective Collateral for the SPR "Harvesting Wealth" is now open!

Collective Collateral for the SPR "Harvesting Wealth" is now open!

The first farmers who joined EthicHub, back in June 2018, and who some time later organized themselves as a Rural Production Society-SPR, now announce their intention to establish collateral for future loans requested on the platform  

What a piece of news, ethichubbers. The more seasoned among you will remember some of those early communities that were incorporated into the EthicHub platform. Names like San Rafael, Las Delicias or Chespal, are already an important part of the small history that we are writing together here. And many others, of course, as many Mexican and those others that are currently spread out in countries such as Brazil, Honduras, Ecuador and Peru.
But what we are telling you today seems to us to be a significant milestone and that is why we want to share it with you. From the collaboration between these first communities arose naturally the need to establish a new form of organization to be able to offer many more valuable services and optimize the original procedures. This is how, in December 2020, the Sociedad de Producción Rural-SPR "Cosechando Riqueza" was founded. A necessary reality to coordinate the different groups of small coffee growers, scattered throughout the Sierra de Chiapas mountain range. Since then, the SPR has managed, with your invaluable support, to provide cheaper and more accessible financing to its producers and to support them throughout the process of preparing and marketing their coffee. Cosechando Riqueza, led by Lucía Ruiz, has done an extraordinary job that has exceeded all expectations and of which we all feel very proud. Without her tenacity, hard work and determination none of this would have been possible. 

Coffe farmers from Cosechando Riqueza

But you are already reading that it has been possible and that is why, now, we are witnessing a greater integration and commitment of those first coffee growers in the EthicHub ecosystem, and nothing less than promoting a collective collateral to provide greater security to all investors. Now, their projects - which were already protected by the Clearing System - add a first layer of security with this newly inaugurated Collective Collateral.

As has already happened with the subsequent originator hubs that have come after, now the goal is that, between all of us, we can contribute to raise the necessary ethix so that future Cosechando Riqueza loans are 100% collateralized. You just need to have ethix on the CELO blockchain! And with Crytpopocket, it is a matter of minutes to acquire them and make them available to small producers with a Valora wallet. 

We are aware that this is not an easy task because the SPR has grown extraordinarily and so have its financing needs. But it is a good sign because that is precisely what we want; to try to reach a greater number of coffee growers and in any part of the world. That is why the objectives we have set ourselves are ambitious. We want to have a total collateral of 600,000 ethix, of which 20% (120,000 ethix) will be provided by SPR Cosechando Riqueza, another 20% (120,000 ethix) by the audit node. So it will have to be all of us, the ethixholders, who will have to materialize our trust in them by contributing the remaining 360,000 ethix (60%), in order to reach the required 100%. We have never opened such a large Collective Collateral before, so it will probably take much longer to reach the goal than on previous occasions, but when we achieve it, it will be another milestone we can be proud of. 

Pool of Cosechando Riqueza

Remember that in our system, this collective collateral works in a similar way to the typical traditional collateral and ethix fulfills its function of aligning the incentives of all participating players. If the SPR could not pay the loans back, those 600,000 ethix deposited, would remain at the disposal of the investors who, despite the default, would not be harmed and would receive the principal plus the agreed interest. So, as we are aware that the risk exists, we are going to use DeFi tools to compensate the possible risks. But, if everything goes well and Cosechando Riqueza pays the loans in due time and form as up to now, that collateral can be recovered by the participants, plus the profitability obtained during the established period. And as we say around here, it is much more desirable, because it is resilient and decentralized, that 1,000 ethichubbers contribute 100 ethix each than a single ethichubber contributes 100,000. And even if you think it's an irrelevant gesture, you can't imagine the immense value it brings to our ecosystem.  

The reward we are going to allocate for this exciting Collective Collateral will be 296 ethix per day, distributed proportionally to your contribution. Once closed, mathematics tells us that the annual profitability will be 30%. 

We will distribute 296 ethix per day during all the days of the collective collateral. In total, we will allocate a total of 108,000 ethix among the ethixholders who contribute to reaching the final goal of 360,000 ethix. 

And a little more from us, ethichubbers, thank you all very much!


EthicHub is a ReFi (Regenerative Finance) protocol that helps unbanked farmers access capital at low interest rates in a win/win model where all stakeholders benefit from the interaction. Its crowdlending platform was launched in June 2018, and to date (January 2023) it has brokered more than $3M in microcredits to more than 600 families in 5 countries.