The ecosystem bridges traditional impact investment and Decentralized Finance (DeFi). It enables DeFi investors to generate positive social impact and traditional impact investors to benefit from DeFi.
The system provides high liquidity, at soft loan rates, to impact projects in frontier countries and least developed countries (LDCs), a blockchain-based impact measurement system, and above-average returns to investors due to DeFi protocol integration. The generated impact can be traced and validated through SI Network's impact measurement system utilizing blockchain and IoT.
SI Pools are decentralized climate funds connecting investors with impact projects. SI Pools allows impact investors to deposit stablecoins to create a strong positive social impact while benefitting from the features of DeFi and blockchain technology. The investment becomes more flexible, faster, and offers higher returns than investing in the traditional impact investment market. Investors are able to see and track how much social impact investments have created.
DeFi (Decentralized Finance) is a new category of finance based on blockchain technology that promises to disrupt traditional finance by increasing efficiency. To learn more about DeFi, please click here.
Investors familiar with the use of DeFi protocols can use SI Vaults to add measurable impact to their DeFi-based yield farming. They receive farming and lending yields while creating a positive social impact by contributing to real-world projects. All yields will be harvested and auto-compounded.
Furthermore, SI Network provides SI Core vaults to earn on staked SI Network ecosystem tokens (e.g. SI Pool Tokens, etc.). This allows investors to use SI Pools to earn additional returns.
Users of SI Vaults earn rewards in form of SI Token ($SIT).
SI Governance selects projects which are funded through SI Pools and hedges default risks. SI Governance is an insurance protocol where holders of SI Token can stake their tokens and receive rewards for successfully implemented and reimbursed projects. SI Token Holders receive rewards for securing SI Pool and are eligible to earn additional rewards for voting on project proposals or delegating their voting power.
Traditional impact investors typically have to choose between generating social impact versus flexibility in their investments. Either they have flexibility in their investments but receive low transparency and provide low social impact (e.g., impact ETF, impact stock funds), or they have less flexibility but provide high social impact (e.g., real-asset funds, crowdfunding projects). Investors in real-asset funds are stuck with their investment for an average of 10 years or more.
SI Pools solve this dilemma by using DeFi. Additionally, it promises higher yields and better transparency than traditional investment funds. By combining DeFi with impact investing, SI Pools offer more transparency, security, and flexibility than traditional impact investing, all while delivering higher returns and greater impact than traditional financial products.
SI Pools are decentralized protocols that deposit multiple tokenized loans to fund real-world asset projects (e.g. solar PV projects) and deposit their liquidity reserve in DeFi lending protocols. Impact Investors receive their yield through both real-world assets and DeFi lending pools. The liquidity reserve allows investors to withdraw their pool tokens. At the same time, investors are always able to sell pool tokens on highly liquid secondary markets. All pools are governed by $SIT token holders.
DeFi farming is a new way to get more crypto by staking tokens to decentralized protocols. However, these approaches are currently not sustainable. So far, farming doesn't create social impact through real-world projects.
With SI Vaults, DeFi farmers create measurable impact and become DeFi impact investors while continue to earn auto-compounded lending and farming yields.
With SI Vaults based on 3rd-party DeFi protocols, the staked liquidity is routed to chosen yield aggregators (e.g., Autofarm) and a portion of profits goes to SI Treasury with the purpose of investing in SI Pools (supporting real-world social impact projects) and developing the SI Network ecosystem. Farmers and lenders receive SI Tokens (governance tokens) as reward for using SI Vaults.
The transparent impact measurement system makes it possible to clearly track the impact of each SI Pool. This allows investors to clearly understand how much impact is generated by the pool they're invested in. For each pool, there are individual metrics to measure impact (e.g. Sunny Pool measures how much CO2 is avoided and how much clean energy is generated).
With SI Token, the governance token of Social Impact Network, members are able to select impact projects that will be funded and implemented. Token holders can participate in the voting process, or delegate their voting rights to experts who vote on their behalf.