We are thrilled to announce that we will integrate Dharma into our ecosystem. Dharma is a protocol, aimed to build secure infrastructure layers that allow us to create debt agreements of digital assets On-Chain.

It can support virtually any kind of lending product you can imagine. It is flexible, extendable, and live on the Ethereum Mainnet.

We will utilize their protocol as the fundament for our lending infrastructure which will allow us to construct sophisticated debt issuance schemes. If you would like to learn more about the technical specifics, we encourage you to study their white paper.

How does ETHA aim to integrate the Dharma protocol?

We will use Dharma’s smart contract system to build our Lending Circle.

What is Lending Circle?

The aim of Lending Circle is to build a trustless and self-governed non-custodial lending system that is based upon well-known lending systems also known globally as Sou-Sou, Cundinas, Gye or Hui.

How does it traditionally work?

A group of people gets together and agrees upon an equal amount they would like to pool weekly, monthly or one time. A payout schedule is created to ensure everyone in the group receives a fair share. The goal is that every member receives the pooled funds at least once during the rotation. The group elects a treasurer who is responsible to collect the contributions of the members and manages, in general, the rotational payout to each member. The treasurer normally gets an incentive for her/his service.

Our Solution

The formerly centralized custodian (treasurer) would become a DAO of each member of the lending circle.

The DAO would be responsible to take in the members funds and distribute them rotationally according to the pre-set logic of the system.

1% of all pooled funds will be automatically incentivized to the DAO.

Role and Functionalities of the DAO

The ability of storage and fair distribution of funds

Calculate the rotation circle fairly based upon the funds that have been paid in by each member of the circle.

Efficiency and transparency with no intermediary involved

Accessibility to anyone with Internet access

About Dharma

Dharma is a platform for building globally-accessible lending products using programmable, tokenized debt.

Build your own lending products by visiting their website. To learn more about Dharma’s latest updates, join them on Telegram or Twitter.

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