Challenges of Present TradFi and DeFi
Access to funding has never been more crucial for the survival of businesses due to the lending-based global economy we find ourselves in.
Unmet Financing Needs in Emerging Markets (EM)
Significant Funding Gap
41% of businesses in emerging markets face unmet financing needs due to the limitations of traditional finance (TradFi).
A staggering $5 trillion funding gap restricts economic potential, representing 130% more than the funding currently available.
Lost Opportunities
The inaccessibility of capital leads to billions of dollars in missed opportunities for businesses, stifling innovation and growth in these regions.
Democratizing Investment Access
Spice Protocol makes high-yield investment opportunities—once reserved for large institutional players—accessible to a global base of Web3 investors.
Through tokenization and DeFi vaults, users can participate in diversified, high-yield investments without the traditional barriers of minimum capital requirements or geographic restrictions.
DeFi’s Closed Yield Loop
Circular Yields in DeFi
DeFi primarily generates returns from activities like lending, borrowing, staking, and liquidity provision on-chain, relying on user participation rather than real-world economic activity.
This closed-loop system recycles existing capital, often resulting in volatile yields highly sensitive to crypto market fluctuations.
Lack of Real-World Integration
Without incorporating real-world assets (RWAs) or external revenue sources, DeFi fails to tap into genuine, scalable growth opportunities.
The absence of real economic value inflows leads to unsustainable APYs and limits DeFi’s potential for long-term stability.
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