Branche is a decentralized platform created to provide accessible and affordable financial services like micro-credits, loans, cheque cashing, payday loans, and other basic financial services to the unbanked and underbanked population, which can be found not only in developing countries but in developed countries as well (There are approximately 89.3 million underbanked Americans). Not only does Branche allows customers to have access to these financial tools with ease, it also creates business opportunities for investors.
Built on the Ethereum network, Branche disrupts the current financial services paradigm by eliminating the expensive and limited central store fronts like banks, credit unions, or payday loan stores that are often inaccessible for certain users. Instead, users can access all the services previously provided by store fronts, all in one single application. In the Branche setting, these services are not provided by centralized financial institutions, but are instead made available by vendors, which can be any entity or individual that wants to join the network and goes through the onboarding process with the local Branche Community Representative.
Branche is composed of three types of community members: Clients, Vendors and Lenders. These members are interconnected and have a mutually beneficial relation within the platform. Clients get access to financial services, vendors provide these basic financial services and the lenders provide liquidity for said services in the form of loans.
When a Client enters the branch network and requests a financial service like a micro-credit loan, they are matched with a Vendor and a “Smart Loan Contract” will be initiated and funded from several liquidity pools, allowing the risks from the loan to be socialized. The Smart Loan Contract will then create a Branche Debt Tokens (BDT) that will be distributed to the Vendor and the Lenders that provided liquidity for the loan. These tokens will be consumed as the loan is repaid by the Client.
Whenever this Smart Loan Contracts are issued, a child contract responsible for the issuance and distribution of new Branche Loyalty Token (BLT) supply is created . This contract will first evaluate if new supply can be created based on the sales volume supply cap. If the active supply of BLT tokens is below this sales volue supply cap, then new BLTs will be issued and destributed according to the supply and demand ratio. BLT tokens have multiple functions:
- They can be sold in the Auction House for immediate additional revenue.
- To buy revenue sharing smart contracts, which allow users to customize the way they receive extra revenue from Branche and to earn an additional +10% from Branche’s revenue (This BLTs are destroyed).
- To use in the Proof of Stake Reservation system. This system acts like a queue for Vendors and Lenders. When these want to provide liquidity for a financial service, they can use Branche Loyalty Tokens to hold or advance their position on the queue. These tokens are held in escrow until their account is selected to provide liquidity, after which the tokens are sold in the internal exchange. Branche collects a small fee, a portion goes into a charity wallet (one of Branche’s liquidity pools), and the remainder is transferred back into the user’s hot wallet.
The Branche Loyalty Token (BLT) can be purchased for Ether through the ongoing Branche crowdfunding event. This Initial Coin Offering started on the 5th of December and will last until the 1st of January. Investors can take advantage of the current 15% bonus that will last until December 18th.