Decentralising $30T Global Supply Chains by Tokenizing Trade Finance

Abstract

Emerging markets (EM) have long been overlooked in traditional finance, often deprived of the investment flows that fuel growth and innovation. The $5 trillion funding gap in EM has left countless high-potential businesses and sectors underserved, creating a unique opportunity to unlock high-yield investments.

Spice Protocol is bridging the funding gap and decentralizing global supply chains, starting in emerging markets, by tokenizing trade finance for the import and export sector. This transformative approach unlocks access to previously untapped capital, offering businesses alternative financing solutions while delivering high-yield opportunities for investors.

Through its innovative hybrid yield model, Spice Protocol pioneers a new era of DeFi by seamlessly integrating yield generated from lending to real-world businesses with yield derived from on-chain strategies through its yield farming vaults. This unique approach not only creates a diversified yield stream resilient across crypto market cycles but also provides the scalability to support significantly higher TVLs, positioning it as a robust and future-proof protocol.

Spice Protocol leverages its off-chain entity, developed over the past 5 years, to execute import and export contracts across South Asia, specializing in fast-moving agricultural commodities. By building an extensive network of suppliers and buyers across South Asia and beyond, Spice Protocol is uniquely positioned to drive the adoption of decentralized technology in international trade. With its proprietary auto-healing ramping system, Spice Protocol facilitates the release of fiat loans against crypto collateral, eliminating costly ramping fees, reducing reliance on the SWIFT system, and laying the foundation for future payment rails that enable direct, efficient international trade transactions.

Our Vision and Mission

At Spice Protocol, we envision a decentralized financial ecosystem that seamlessly integrates with global supply chains through tokenizing trade finance and key operational processes. Our goal is to create measurable economic value that flows fluidly between on-chain and off-chain ecosystems, catalyzing tangible growth in emerging markets. This vision enhances the sustainability and resilience of DeFi while delivering profound social impact—stimulating economic development, creating employment opportunities, and fostering a fairer global distribution of wealth.

Our mission is to bring previously untapped high-yield investments from the real world on-chain by revolutionizing the global supply chain industry. Starting with fast-moving agricultural commodities, Spice Protocol leverages its Hybrid Yield system to merge the stability of RWA-based yields with the amplifying potential of Web3 strategies through our yield farming vaults.

By offering alternative financing solutions and democratizing access to high-yield investments, Spice Protocol is setting a new benchmark for sustainable DeFi growth. This forward-thinking approach empowers investors, bridges critical funding gaps in emerging markets, and establishes a resilient financial ecosystem that fosters equitable economic progress on a global scale.