The DeFi industry is growing at a rapid pace, revolutionizing numerous industries along the way. However, its door is still closed to the part of the market in the traditional impact investing space which is ready for blockchain adoption, but does not have the proper tools to do so.
Are impact investing and ESG investing worth disrupting at all? We certainly think so, and we are not alone on this one. Countless investment experts are calling it the investment opportunity of the century.
Need some convincing? See why Decentralized Finance (DeFi) and impact investing are a natural fit.
Social Impact Network bridges DeFi and traditional impact investing space using an ecosystem of products that are designed to connect and revolutionize both industries, and lead the DeFi revolution into a sustainable and reliable future.
SI Network Ecosystem
The SI Network ecosystem creates a relationship between impact investing, DeFi, and decentralized governance.
The project’s flagship protocol, SI Pools, is an undercollateralized loan protocol for financing social impact projects with measurable impact. It consists of specialized portfolio funds, each focusing on different impact generation categories.
The first pool, Sunny Pool, funds various Solar PV projects. Impact investors receive stable APYs and NFTs representing their generated impact (CO₂ NFTs is under development).
Who is it for?
Investors looking for opportunities to reduce CO₂ emissions or make a similar positive impact on the environment while maintaining stable APYs are perfect candidates for using SI Pools. On top of that, they receive impact NFTs as additional rewards and enjoy more flexibility than on any other purpose-driven investing vehicle.
Provided Stablecoins are used for investments in solar energy projects and further impact-driven real-world projects.
SI Vaults functionality enables users to liquidity mine on the platform. By doing this, the platform offers its customer base a unique proposition — they can yield farm while making a positive impact on the environment.
Who is it for?
Yield farmers who want to reduce CO₂ emissions or make a similar positive real-world impact through lending and farming activities.
A small impact fee (3%) on profits is forwarded to the SI Treasury to promote the growth of the SI Network ecosystem.
SI Governance puts the power back in investors’ hands by rewarding good decision-making input such as project selection and insurance staking to hedge against loan defaults. Investors can make their own decisions, or delegate their voting power to SI Network’s experts, such as UNDP, to ensure informed decision-making for optimal network health while still earning rewards.
How it All Works
SI Pool Investing Protocol and CO₂ Measurement
Alice the impact investor, deposits stablecoins (e.g. DAI) into Sunny Pool and receives Sunny Token representing her share of the investment. She earns interest on her deposits and receives CO₂ NFTs representing the amount of CO₂ emissions which have been avoided through her investment.
Institutional borrowers borrow Alice´s stablecoins to implement Solar PV systems that generate energy and revenue. Their reimbursement payments are forwarded to Sunny Pool.
The amount of avoided CO₂ emissions is automatically measured and transmitted from each Solar PV system to Sunny Pool.
The liquidity that is not yet lent to institutional borrowers is forwarded to third-party Lending protocols, therefore generating additional yields. No funds sit idly with SI Network!
Depositing in SI Vaults and APY
Alice wants to farm SI Tokens and make an impact by offsetting CO₂ emissions. She decides to deposit Sunny Token to the Sunny SI Vault, as well as wBTC to the wBTC Vault. She then earns SI Tokens for both vault deposits.
Her Sunny Token will be stored and rewarded directly within SI Network, while her wBTC deposit will be forwarded to a third-party DeFi pool. An impact fee of 3% on her wBTC yield profits is used for SI Pools to generate clean energy and reduce CO₂, while the rest of the profits are reinvested to the original DeFi pool.
Staking SI Token, Rewards, and Voting within SI Governance
Alice decides to stake her SI Tokens and gain voting power in order to vote on which projects should be funded through SI Pools. She is then eligible to earn SI Tokens from both staking and voting. After staking her SI Tokens within SI Governance, she is able to vote on which borrowers and projects should receive funding through the Sunny Pool.
Alice is also able to delegate her voting power to experts, who will vote on her behalf while she earns SI Token rewards.
However, Alice has to keep one thing in mind — If one of the Sunny Pool project loans defaults, a part of her stake might get liquidated, regardless of if she voted personally or delegated the voting power to another party.
Social Impact Network offers numerous ways users can benefit the planet and society while maintaining steady and significant profits.