Overview

Summary

• Bluejay Earn is a decentralised fixed income protocol that helps investors get access to diversified, and consistent returns of 7%+ APY by lending out stablecoins to borrowers.

• Investors can participate in any loan pool available to lend out their stablecoins, without minimum capital requirement, to borrowers at a fixed interest rate over the duration of that borrower pool.

• Borrowers can directly raise funds from investors by creating loan pools and leverage DeFi as a source of efficient capital.

Key Problems

Business and individuals lack access to credit

The credit gap in Asia is a significant issue, with over 60% of people in Southeast Asia being underbanked and lacking access to formal financial services such as credit. This lack of access to credit is particularly challenging for business owners, who often require funding to grow and expand their operations. However, many of these businesses are unable to obtain the financing they need because of the complex transaction costs, processes, and due diligence requirements involved in obtaining loans.

The root cause of these challenges is that the existing financial system is not designed to serve the needs of those who lack access to credit. Instead, it is structured to meet the needs of those who already have the means to succeed. This leaves small businesses in the region, which contribute a large portion of the GDP and employ most of the local talent, without the means to access the financing they need to take their businesses to the next level.

Investors lack access to a variety of financial products

On the flip side, investors who are looking to protect and grow their wealth across this region are also limited on opportunities in which they can invest as the barriers to entry to participate in those opportunities, such as minimum capital requirement as much as 200k, are simply too high.

Bluejay’s Approach

Bluejay is on a mission to tackle the credit gap problem in Asia by building a decentralized fixed income protocol. The Earn protocol is designed to empower emerging market economies for both investors and borrowers, providing a sustainable solution to the credit gap problem in Asia.

Bluejay Earn matches the demand for capital from small businesses across Asia with the supply of capital from investors who are looking to generate consistent returns from real economic activities. This creates a win-win situation for both parties, as small businesses are able to access the financing they need to grow, and investors are able to generate consistent returns from a diversified portfolio of investments.

Bluejay is focused on empowering emerging market economies by providing a platform that is accessible to both investors and borrowers. With Bluejay Earn, investors will have access to opportunities that are typically not available to them. This gives them the chance to invest in real economic activity, generate a sustainable return, and make a positive impact on the world. Borrowers, on the other hand, will be able to raise capital through Bluejay Earn, giving them the resources they need to take their businesses to the next level.

Stakeholders

The protocol depends on two groups of stakeholders, the lenders and borrowers

Investors provide capital by lending their stablecoins into various lending opportunities (“Loan Pools”). This enables investors to earn fixed interest rate on the stablecoins that they have lent out.

Borrowers propose and raise capital by creating borrower pools in which the investors can deposit their stablecoins. Borrowers generate yield for investors from real productive usage to accelerate their economic growth.