DLN bags six letters of intent from Microfinance Organizations around the globe
The Decentralized Lending Network (DLN.org), a DAO, announced that it had, in rapid-fire succession, received a half-dozen Letters of Intent from Microfinance Institutions (MFIs) spanning the globe.
DLN leverages the efficiencies of decentralized finance (DeFi) on the blockchain and patent-pending tech to help philanthropic organizations scale to better help the communities they serve.
“With DLN, borrowers only have to pay back the principal,” a DLN community member explained. “It benefits their communities, too. Friends and neighbors collateralize the loans, and that collateral is deposited in safe DeFi protocols that will passively earn 9% APY. Once the loan is repaid, the collateral is returned, and that 9% is split three ways. 1/3rd goes to those friends and neighbors who provided the collateral. 1/3rd goes to the lender—in this case the MFI—and 1/3rd covers system fees, which ensures the loans stay at 0%. That’s DLN. It’s technology that allows rainmakers to make a whole lot more rain.”
Proofs of Concept will be created in collaboration with each MFI that signed a letter of intent.
The MFIs are India’s Dhosa Chandaneswar Bratyajan Samity (DCBS), The Country Women of Association of Nigeria, Hands Empowering the Less Privileged of Sierra Leone, the Afghanistan Women Council, Palestine for Credit and Development, and Questscope, an organization focused on the underserved in Syria and Jordan.
“We have been serving communities in West Bengal & Bihar for 18 years to improve the quality of life of poor rural women,” said DCBS CEO Animesh Naiya. “DCBS has set a goal of reaching three more neighboring States by 2025. We look forward to seeing how DLN can help us provide our clients with more aid.”
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Combined, the six organizations oversee $130 million in funding, and positively impact the lives of more 2 million people.
Dr. Adel Elmessiry, CTO and President of AlphaFin, Inc., the company that developed the code being used by DLN, expressed great pleasure upon hearing of the signings.
“This is why I insisted the code be open source,” he said. “It would have been wrong to silo it within one company. I knew, in releasing it to the world, great things would come in its wake.”
Collaborative efforts between DLN and the MFIs are already underway, and proofs of concept are expected to go live later this year.
Letters of Intent are not the only news coming out of the DLN community. Earlier this month, the DAO website, DLN.org relaunched, brandishing a complete redesign, one with the goal of appealing to visitors inside and outside the blockchain space.
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