Minilend enables individuals from emerging markets to convert their local currency savings to dollar format, and lock them to the platform and earn up to 10% APY; creating an alternative banking solution to individuals suffering from high inflation ridden markets, and the largely unbanked African population.
Our mission is to see a world where individuals save wisely, and enjoy the full value of their hard earned assets to improve their livelihoods.
The rate of inflation in some key markets in the African continent is ranging from 18-32% annually. Meaning individuals lose close to 30% of their hard earned savings every single year! These are peoples' only hope for better education, starting a business, or even for retirement.
With an easy to use application, users can now convert their local currency savings to dollar format, lock them onto Minilend and earn up to 10% annual percentage yield on all their deposits ! Also, for users that already have a good track record of savings, they can use their USDC savings as collateral for a local currency loan. No extra collateral needed.
Minilend's business strategy offers depositors competitive yields and borrowers easily accessible loans by combining fee-based services with a shared liquidity pool to create long-term revenue. The fundamental workings are as follows: users contribute stablecoins to a centralized pool; borrowers take out loans against the pool and pay interest; and the platform keeps a small spread and other charges. 1. Value Proposition: • Generate passive yields for lenders (e.g. G. ~8% APR) on stablecoins that are not in use. • Instantaneous withdrawals and deposits—liquidity on demand. Borrowers can obtain small-dollar loans quickly (e.g. G. up to $500) straight within the app. • Clear and straightforward interest rates (e.g. about 10% APR). 2. . Sources of Revenue 1. Interest Spread • Borrower Rate: pending loans are subject to an APR of about 10%. • Lender Rate: Depositors receive an APR of about 8%. Platform Capture: ~2 percent of the annual percentage rate is kept as net interest margin. 2. . One-time fees (e.g., origination fees). A. 0–5 percent of the loan balance) at the time of disbursement. 3. . Fees for Withdrawals • Minimal fee (e.g. A. 0–25% of withdrawal) to pay for transaction expenses and produce extra margin. 4. . penalties for late payments (e.g. A. For past-due loans, 1 percent per month. 5. . Premium Services (Future): For a subscription fee, you can get advanced analytics, group ("Chama") management tools, and priority support. 3. Cost Structure: Interest spread paid to depositors is a capital cost. • Operational expenses include customer service, platform upkeep, and KYC/AML compliance. • Costs associated with technology include databases, cloud hosting, and real-time notification systems . 4. • Total Value Locked (TVL): The sum of all deposits made into the pool. • Loan Book Size: Total number of outstanding loans. The difference between average borrower and lender rates is known as the net interest margin, or NIM. • Default Rate: Centrally managed percentage of loans that are not repaid on schedule. • Retention and Growth: Referral rates and the frequency of user deposits. 5. Distribution and Go-to-Market Integration with MiniPay: Take advantage of the millions of users already in Africa. • Social Features: "Chama" pods to draw in neighborhood-based savings groups. • Partnerships: Work together with regional fintech aggregators and SACCOs. 6. Competitive Advantages • Simplicity: A well-known wallet app with a zero-jargon user interface. • Speed: Loan approvals, withdrawals, and deposits happen almost instantly. • Trust: For depositors, centralized underwriting reduces individual borrower risk. 7. Scalability and Extensions • Support for Multiple Currencies: Include local or euro stablecoins. • Governance Token: Future community rewards will be tokenized. White-labeling the MiniLend engine for other wallets is known as API licensing.
Want to raise from VCs
Africa
