ETH Bank | Pitchdeck | Demo video

ETH Bank (TradeFi & DeFi)

High-Yield Contract | Lending Contract

ETHBank seamlessly combines TradFi's trust with DeFi's innovation, offering a compliant and accessible hybrid financial ecosystem.

Overview

ETHBank bridges the gap between traditional finance (TradFi) and decentralized finance (DeFi), combining the trusted elements of banking with the innovation of blockchain. Built on Ethena’s permissionless, high-yield infrastructure, ETHBank offers a hybrid financial ecosystem that integrates TradFi-like features with decentralized solutions, ensuring both compliance and user accessibility.

Market Search

Banking and Stablecoin Adoption:

• The traditional banking market is projected to reach 2 trillion by 2030, driven by the adoption of user-friendly platforms and competitive products.
• Stablecoins like USDT and USDC are becoming critical components in modern finance, offering a bridge between fiat and digital currencies.

Expanding Stablecoin Use Cases:

• Cross-Border Payments/Remittances: Stablecoins reduce costs and processing times for international transfers, providing a compelling alternative to traditional remittance systems.
• Savings and Investments: Stablecoins enable users to earn high yields through DeFi platforms or serve as secure, liquid reserves.

DeFi Market Deep Dive:

• Lending Protocols: Platforms like Aave and Compound demonstrate a growing demand for decentralized lending systems with transparent collateralization and competitive rates.
• Funding Pools: Crowdfunding or liquidity pool models allow for innovative solutions such as real estate investment or structured product development, unlocking new revenue streams in DeFi.

Problem

• Traditional Banking Limitations

  • Limited access for the unbanked/underbanked.
  • Low savings yields and centralized risks.
  • Lack of integration with decentralized assets.

• DeFi Challenges

  • Complex interfaces and regulatory uncertainty.
  • High volatility and trust issues.
  • Insufficient funding opportunities for smaller investors and niche projects.

Solution

• Simplify UX/UI for seamless TradFi and DeFi integration.
• Offer stable, inclusive financial products like cross-border payments and high-yield savings.
• Enable efficient funding pools for startups and smaller investors.
• Ensure compliance for trust and mainstream adoption.

Feature

1. High-Yield Savings Account

• Users can stake USDe and earn rewards with competitive APYs, viewable on the Ethena platform.
• Rewards can be configured to automatically repay loans, creating a repayable loan mechanism.
• Offers a seamless savings experience with integrated loan management.

2. Lending Model

• Users deposit funds into liquidity pools to fund projects, leveraging a tranche exposure structure:
  • Senior Tranche: Investors earn fixed returns (e.g., 11% annual return).
  • Junior Tranche: Receives the remaining yield after senior tranche payouts (e.g., if the project earns 40%, 11% goes to ST, and 29% goes to JT).
• ETHBank acts as a Junior Tranche player, while depositors assume the role of Senior Tranche investors.

3. Overcollateralized Loan/Borrow

• Users can stake ETH to borrow USDe with a fully transparent, overcollateralized structure.
• Multiple repayment and collateralization options are available, offering flexibility for borrowers.
• Innovative models for better risk and reward management are under exploration.

Target Customers of ETHBank

1. Unbanked/Underbanked Populations

   • Individuals without access to traditional banking services, seeking affordable and inclusive financial tools.

2. Remittance Senders and Receivers

   • Users aiming for low-cost, fast cross-border payments leveraging stablecoins for remittances.

3. Crypto Investors and Enthusiasts

   • Individuals looking for high-yield savings, decentralized lending, and staking opportunities.

4. Small and Medium Enterprises (SMEs)

   • Businesses requiring cost-efficient funding options and liquidity solutions for growth.

5. DeFi Developers and Builders

   • Innovators exploring integrated blockchain financial solutions for creating new applications and services.

Usage

1. Ethena: Staking/Unstaking on high yield savings account. Also used on staking when users deposit on lending pool.
2. Goldsky: Created subgraph /frontend/ethbank-sub. Graphql API