Background

The traditional crowdlending and peer-to-peer (P2P) lending markets face several systemic issues that hinder accessibility and efficiency, especially in underbanked regions. One of the most prominent problems is the over-reliance on intermediaries such as banks and financial institutions, which increase transaction costs through high fees and lengthy processing times. These middlemen not only slow down the process but also make it more expensive for both borrowers and investors, limiting overall capital accessibility. Additionally, credit checks and risk assessment systems are often centralized, opaque, and prone to bias, which further excludes individuals and businesses with non-traditional credit histories from obtaining necessary financing.

Amplifier: If these intermediaries and barriers were reduced or removed, the financial ecosystem could become significantly more efficient. For instance, the billions of dollars currently spent on intermediary fees could instead be used to fund small businesses, fuel innovation, and enhance economic growth. Imagine a scenario where borrowing costs are slashed by 20-30%, allowing startups and SMEs to scale faster, or where investors enjoy higher returns due to lower transaction fees. Furthermore, decentralized risk assessment and lending protocols could open up financial access to millions of underbanked individuals, fostering greater financial inclusion and economic empowerment.

The Problem: The current structure of the crowdlending market is inefficient, exclusionary, and expensive due to centralized control, lack of transparency, and excessive reliance on middlemen. These issues stifle innovation, increase costs, and limit access to capital for both borrowers and lenders.

The Solution: 8lends, as a decentralized crowdlending platform, directly addresses these challenges by leveraging the power of Web3. Through its modular tokenomics and transparent credit checks, 8lends eliminates unnecessary intermediaries, reduces costs, and enhances capital accessibility. By moving the crowdlending process on-chain, 8lends promotes a more inclusive and transparent financial ecosystem where both borrowers and investors benefit from faster, cheaper, and more secure transactions.