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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.

What is crypto? And how I'm using it to eradicate poverty in Africa...


Cryptocurrency is a very inaccurate name for what should really be called "Digital Assets". Prior to Bitcoin, there was no way to own anything digitally, because any digital file could be replicated into oblivion--hence pirated music, videos, etc.


If anyone could duplicate dollars and we didn't have a central bank that controlled how much money was made, no one would be using the US Dollar. Bitcoin solved this problem by inventing the "blockchain". Blockchains are just ways to validate who owns what digital assets. This can be digital money (stablecoins), digital art (NFTs), or digital land (Metaverse). For every asset that exists in the physical world, there will be a digital equivalent.


In this world of digital assets, there is no need for banks, because you have control your own digital money. Prior to digital assets, you would have to trust a bank to keep your money safe without engaging in risky behavior. But as we saw in 2008, banks can't be trusted. They can fail and lose all your money, so the digital asset community came up with solutions where communities of people could come together and pool their assets in order to provide financial services without banks.


DeFi (decentralized finance) protocols are computer programs that replace the need for banks. They allow people to deposit money (ie. "staking") and use those deposits to offer financial services without a bank as a middleman reaping all the profits. Anyone can now facilitate the exact same financial services that banks used to do and make the profits that the bank would have made off your money.

In traditional finance, the largest financial market in the world is called Forex (foreign exchange). This is the market for trading between different currencies. When you go to the airport and trade USD for EUR, you pay someone a fee in order to exchange those currencies for you. The same service exists in the crypto world and the largest exchange that offers this service is called Uniswap.


What my partners and I have created is a way for investors to stake Bitcoin (BTC) and Ether (ETH) on Uniswap, in exchange for a flat 1.125% weekly return (1.25% weekly if you stake over $1 million USD of ETH or BTC). On top of your payout, we make a spread that we reinvest into microloans.

Traditional microfinance investors have always had to accept that if they want to earn higher financial returns they would have to charge more interest to people in poverty. We de-couple that trade off by making our investors money in crypto and reinvesting our share of the profits into the microfinance business.


Additionally, the investment is fully collateralized by a foundation holding physical assets valued at $481 million and it's liquid meaning you can pull your money out at any time. If you do the math, that's a 79% APY (91% APY on over $1 million), guaranteed by a nearly half a billion dollar treasury. Investors can now think about their microfinance contribution as a real financial investment, not just a charitable cause.

At this point, you're probably wondering, "What are the risks?"

  1. BTC & ETH are volatile -- You're getting paid out in the same cryptocurrency that you stake, so if the value of BTC or ETH drop, the value of your payouts will drop with them.

  2. DeFi Protocols can be hacked -- Uniswap is an open-source computer program holding billions of dollars, so it's a target for hackers. So far the platform has done around $1 Trillion of transactions without any problems and it's built on Ethereum, which is considered the safest smart contract enabled blockchain, so people in the crypto community deem it as safe as it gets. But even if a hack were to happen, your investment would be guaranteed by the physical assets of my partner foundation.

  3. Impermanent Loss -- Imagine that you work at the Forex bureau at the airport buying and selling USD/EUR. What would happen if you were to sell more USD than EUR. In theory, you could sell all your USD and only end up with EUR. The same thing can happen in DeFi. You could stake into an ETH/USDC pool and end up with only USDC. This is called impermanent loss. We protect against this risk by buying back whichever currency we just sold on Binance Exchange--which is a centralized exchange with low fees. This is called rebalancing and we rebalance about once every minute. Thus our profit margin is the difference between the fees we earn on Uniswap and the fees we pay on Binance Exchange which is less than 1/10th of the cost.

If you are new to crypto and you fear the risk of your BTC or ETH going down, just think, even if your principle investment drops in half, it would be as if you're still earning 40% per year on the money you have invested. That's the beauty of this investment: you continue to earn a weekly return even if the asset value falls.

By staking into our liquidity pool you'll be able to make great returns, while mitigating your risk exposure, and helping fund microloans in Uganda.

Everyone in the microfinance industry has known that we've needed a technological breakthrough in order to run the final mile towards the end of poverty. This breakthrough allows investors to earn more money with less risk while simultaneously lowering the interest rates for borrowers. It's this type of creative financial solution that the industry has needed and now you can be a part of it for a minimum investment of 1 ETH or 1 BTC.


For more information, email me at clark@clarkvarin.com and I'll explain the process to invest.


Thank you,

Clark Varin

Co-Founder, Muvule Financing

P.S. Join my newsletter to be the first to hear about future opportunities like this.

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