DeFi in the Coronavirus Pandemic: From Blockchain to the Supermarket Defi on Medium

Tinlake, Centrifuge’s asset-backed lending protocol, has had a chance to prove DeFi’s responsiveness to pandemic: by getting money (quickly) into the supply chain deserving it desperately.

Dylan Dedi

HappyFresh, a Singapore-based online grocery delivery platform, was financed via Centrifuge Tinlake and ShuttleOne during the Coronavirus Pandemic. Like many online grocery delivery platforms, they were hit with an overbearing number of orders during the shutdown. One of the biggest issues to deal with is keeping up with the capital: a 200+ employee labor spike was needed to keep their virtual shelves stocked. ShuttleOne creates financial services for different categories of consumers in all markets using blockchain technology and aims at reducing friction between digital assets and local currencies. To date, they provide remittance services for their 600k+ users and are building out their offering to advance early payments to their existing merchant portfolio. This includes offering collateralized loans to platforms like HappyFresh; using guaranteed payment (via invoices) as collateral, ShuttleOne is able to extend loans using Tinlake. Tinlake becomes the component that plugs ShuttleOne into DeFi liquidity.

Why Would ShuttleOne Want to use DeFi in the First Place?

DeFi can optimize and improve on existing financial tools on Wall Street. More automation = less costly intermediaries, which is ShuttleOne’s engineering ethos — Automate Everything Finance. Fewer intermediaries also mean less trust involved in the process, leading to a much faster, cheaper and open system. Fast and cheap liquidity allows HappyFresh to respond to the rising demand for goods without skipping a beat.

HappyFresh Tx Data // ChowFeng Tx Data

DeFi is building its own monetary system, backed by real assets. MakerDAO is leading this charge with the origination of Dai, a collateral-backed stablecoin. Currently, the majority of Dai is backed by ETH; but to scale this system and grow beyond the limit imposed by ETH as collateral, we need to onboard assets beyond the scope of cryptocurrency. We need to bring on Real-World Assets such as invoices, mortgages, royalties to open up the DeFi world to our current economy.

Maker Foundation recently financed a new transaction with Tinlake and ConsolFreight, in an effort to bring new collateral types into DeFi. This was a mock-up of how the decentralized process of collateralizing Real-World Assets would look between MakerDAO and Tinlake.

ConsolFreight Tx Data

Although these are just pilots, they show something much bigger: not only were our Tinlake V2 pilots successful, but they have showcased real potential to evolve our current financial systems. Starting with Bitcoin in 2008, 2008–2019 showed the world that blockchain is an opportunity, but 2020–2029 is going to show real blockchain solutions interacting with global finance.

We believe that as more diverse collateral is onboarded to Multi Collateral Dai, the DeFi economy will scale. Black Thursday was a proof that DeFi works, but also a big wake-up call for diversification of Dai: Tinlake can play a key component in onboarding Real-World Assets to MCD, opening up billions worth of assets to DeFi.

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