eToro Brings DeFi Platform for Universal Basic Income Distribution

The native crypto of the platform will be initially backed by DAI.

Multiasset brokerage eToro is leveraging decentralized finance (DeFi) for its newly launched universal basic income (UBI) distribution platform, GoodDollar, which will allow the handing out of free crypto-backed stablecoins.

Registered as a non-profit, the platform will allow anyone to receive its native stablecoin, $G, in the wallet that can be created using a phone number.

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The distributed platform will use the recently popularized yield farming protocol to sustain the deposits on the platform. Initially, each $G will be backed by DAI stablecoin, but the platform has plans to back it up with a diverse basket of digital currencies.

Some of the acquired interests on the deposited assets will be distributed among the supporters, while the rest will be collateralized for creation and distribution of $G everyday.

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An Attempt to Promote Financial Inclusion

“We want to connect the 1.7 billion people that remain unbanked to the financial world and offer every person access to basic financial assets,” Yoni Assia, founder of GoodDollar and also the head of eToro, said.

“We hope GoodDollar will serve the next 100 million crypto-users, through freely distributing a new form of internet money that can be used to generate more local and global economic activity.”

Many countries are debating the concept of UBI, but the distribution of fiat properly among citizens remains among one of the key challenges. Such issues could be seen in the recent COVID-19 stimulus distribution around the world.

According to eToro, thousands of GoodDollar wallets have already been created by users in many countries, including South Africa, Ghana, Argentina, and Venezuela.

“…we are offering a framework for wealth creation and distribution that is sustainable and unites the interests of capital holders and basic income recipients,” Assia added.

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