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An Insight Into
Clark's Notes

As much as I love business, I like to learn about a diversity of things and what you’ll find here is mostly just what’s on my mind. Stories that I have, things I’ve been up to lately, and of course, what I’m learning about.

How I’m Using Crypto To Raise A Social Impact Fund

I learned the hard way that it's much more difficult to raise money for impact investments than highly profitable projects, so recently, I've decided to raise money for crypto projects--and my pitch to investors has pretty much been, "I'll make you rich, but once you're rich, you'll have to give some of that back".


In this article I'm going to tell you how I'm making investors great, predictable, returns in the crypto space and how that ties into my Social Impact Fund.



How I'm making investors a ton of money in crypto:

I personally don’t like risky investments. Until I have some funny money to play with, I'm not really interested in the 10x or 20x returns that people promise, because of the uncertainty associated with it. That's why I stayed out of the crypto space for a long time. But as I got deeper into the blockchain scene, I realized there’s a lot more to it than just buying volatile coins, tokens, and NFTs.

The whole point of Bitcoin is that you can own your own digital assets without a bank or anyone else taking control of your money. When you pull up your bank information, the bank shows you an amount cash that you should have in the bank, but doesn’t actually exist. Instead, they’re using your money to make investments and interest elsewhere and they don’t pay you a fair interest for the massive amount of profit that they’re making off of you.

So there are two big functions that the blockchain world is trying to achieve:

  1. They want everyone to have complete control over their own digital assets. Before Bitcoin, you never had complete control over your money unless it was cash. If your money was in the bank, the bank had control. They decide where you can and cannot send it, when you can withdraw it, and if they go bankrupt, so do you.

  2. The crypto space wants people to be able to provide the same financial services that banks used to provide, but without a middleman who takes all the profit. There are a lot of financial services that banks used to do that people can now do for each other via programs and smart contracts, such as: loans, insurance, exchanging currencies, etc. This peer-to-peer financial ecosystem is called Defi (Decentralized Finance).

While most people in crypto are participating in the first of these functions (owning your own digital assets) by buying cryptocurrencies, far fewer people are participating in the second of these functions, which is using their cryptocurrencies to offer financial services to other people in the Defi eco-system.


The first of these investments is very high risk. Cryptocurrencies are super volatile and sometimes the returns aren’t great for months at a time. But no matter how the market is performing, people need financial services, 24/7 round the clock. By staking your cryptocurrencies to DeFi platforms you’re de-risking your digital assets, because even if the market isn’t performing, you’re making money because you’re earning “yield” (similar to interest) by offering the community financial services.


There are plenty of ways to stake cryptocurrencies, because there are plenty of financial services that the community needs and is willing to pay for.

So how does this tie into fundraising for an impact fund?

Well, I ran into the director of a foundation in Malta that is operating a liquidity pool in order to generate revenue for their charity. A liquidity pool is the Defi tool that allows people to swap between two different types of cryptocurrencies. Whenever someone has BTC and wants ETH, they have to go to an exchange and choose a liquidity pool that has the token they want to sell and the one they want to buy.

In one side of the liquidity pool they deposit their BTC and on the other side, they withdraw ETH. It’s that simple. The way the charity makes money is by charging a transaction fee on the swap. There are TONS of swaps happening, which means the people who are operating the liquidity pools are making tons of money from transaction fees.

If I told you how much money this charity is making on transaction fees, you wouldn’t believe me, but it’s well over 300% per year.

This is the equivalent of Forex (eg. swapping between USD and Euros), which banks used to do using your money. Now you can do it yourself (granted you have millions of dollars and a 24/7 team) and cut out the bank as the middleman. What the charity is doing is they are doing the work on behalf of the investor so that people can stake their crypto passively, earning the investor a return of 1.125% per week (or if staked long term, 108% per year). Everything they make above and beyond that (which is a lot) goes to charity.

Since they’re supporting similar microfinance organizations as mine around the world, I asked them if I could participate in their giving. We agreed that whoever I bring to them as an investor would get their return and I would also get a donation equal to the investors return, which I can then use to invest in the high impact projects that I want to invest in.


I struggled for years to raise half a million dollars for my organization in Uganda. Now I’m talking with a few individuals, family offices, and hedge funds that want to stake millions of dollars at a time. It’s a total game changer for my business and how I raise money for the impact space. My new pitch is no longer for people to invest in high-impact projects with low risk adjusted returns--it’s to invest in crypto and when they make a bunch of money, part of their return will automatically go towards my Social Impact Fund.


How can you get involved?

While there are many great opportunities out there, the liquidity pool that I’m working on has a maximum capacity of $100 million, which we project to fill up anytime in the next 60 days. It’s open to everyone (whether you’re an accredited investor or not), there is no lock-up period, and the minimum investment is 1 ETH (~$3,000 USD at the time of writing).

If you have ETH or BTC that is earning less than 108% annual yield, you can contact me to learn how you can switch to a more profitable pool for you that does more good for humanity.

And if you want to stay in touch with future opportunities like this, then you can request to join my investor emailing list by reaching out at: clark@clarkvarin.com

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