Xend Finance, a Nigerian-based startup backed by Binance Labs and Google Launchpad, has announced the launch of the Xend Finance platform, the first DeFi (Decentralized Finance) platform for credit unions and cooperatives.
Xend aims for financial inclusion in the developing world by converting deposits into crypto and harvesting yield on DeFi platforms like Compound and Aave.
While announcing the public launch, the startup founder and CEO, Aronu Oguchukwu, also revealed they have secured a $1.5 million strategic funding round.
Speaking about the problem the Xend Finance platform is looking to solve in Africa, Aronu said:
“Traditional credit unions have a number of limiting drawbacks including only 1% annual percentage yield returns and geographical limitations.” By contrast, a press statement touted as much as 15% APY on Xend users’ savings.
By tapping into DeFi, small savers can stake their local currency and earn compounded interest in a stable currency, like the U.S. dollar.” ~ Aronu Oguchukwu, CEO, Xend Finance
The protocol also allows users to create their own credit unions and cooperatives, eliminating traditional middlemen.
So far, the startup claims to have built a network of 55, 000 users that it hopes to bring over into the new Xend Finance DeFi platform.
About Xend Finance
Xend Finance is a DeFi Credit Union. It is a protocol that decentralizes and optimizes operations of traditional credit unions and cooperatives and provides better yields for the unions and its members through lending protocol optimizations as well as asset security through decentralized insurance.