An Exclusive Interview With Ugochukwu Aronu, Founder & CEO of Xend Finance

By Sunil Sharma
Published May 27, 2021 Updated September 17, 2021
Ugochukwu Aronu Xend Finance

In an exclusive interview with Ugochukwu Aronu, CEO of Xend Finance, where we discussed the core value of Xend Finance and the benefits it provides for users. We also spoke about the company’s unique target market and how it differs from potential competitors in the space.

Q: Can you briefly introduce Xend Finance to our readers and what is your core offering? 

Xend Finance is a DeFi platform for cooperatives and credit unions that provides multi-levels of interest by optimizing and aggregating different DeFi lending protocols with the aim of providing high stable currency yields and token rewards to the financially underserved living in unstable economies.

Our mission is to bring DeFi and stable currency investment opportunities to credit unions, cooperatives, and underserved communities and regions around the world.

Q: What is your take on financial instability and how does Xend Finance plan to contribute in this aspect from a larger perspective? 

Financial instability and currency devaluation is a common problem faced by many African countries. Preventing currency devaluation has become an urgent need for African countries. 

Xend Finance was formed from the need to protect the value of the savings and contributions of individuals who use fiat currencies from devaluations as a result of unstable economies. 

Rather than stay helpless in the face of devaluation, people in these regions can save their money and earn interest in stable currencies on the platform.

Q: You have mentioned that Xend Finance is meant for underserved economies. What is your user acquisition plan for such target groups? 

We are going to be the first DeFi credit union or cooperative platform in the world and the market size is over $1.4 Trillion with over 250m annual members globally. We believe that this industry needs DeFi as it’s used primarily in third world countries where the banking systems are not in a good shape and are ripe to be disrupted. 

We’ll achieve success by introducing our project to different communities in different regions of the world, by having strategic partnerships with different key players in these regions. The strategic partners will help us drive market education and hence the adoption rate will be very high.

Also, we are developing web and mobile SDKs to completely abstract the complexity of building on the blockchain, hence making it easy for both Web2.0 and web3.0 application developers to integrate and expose their users to the values DeFi has to offer. 

Q: Can you briefly explain the working mechanism of Xend Finance how users can interact with your platform?
Xend Finance allows you to save a portion of your income and get a significant return allowing you to reach your financial goals quicker.

The currency you use to save is BUSD, a stable currency pegged to the Dollars. So, basically, you’re saving in dollars, preserving the value of your savings.

We have different savings options for Cooperatives and their members:

  • Fixed and Flexible Savings
  • Esusu
  • Cooperative/Group Savings

    They need to connect a digital wallet like Metamask to start saving on the platform. No registration needed.

Q: How do you yield higher interest rates on user savings as compared to traditional financial management services?  

Xend Finance aggregates multiple lending protocols to provide the best and highest APYs and also rewards users with $XEND tokens for participating. It connects to protocols like Compound, Aave, Fulcrum, DeFi Dollar etc.

We are able to offer users an average of 15% APY and sometimes as high as 30%.

Q: What is the most unique aspect of Xend Finance that sets it apart from other projects in this space?

Xend Finance is unique based on the audience we are targeting. We are targeting non-crypto savvy users and financially underserved users in different regions of the world including Africa.

We’re also building an SDK that abstracts the complexity of the blockchain away and enables both web 2.0 and web 3.0  applications to easily plug into DeFi and bring their existing users into DeFi, so we’re not competing directly with existing DeFi projects.

Q: As we know, there are a lot of DeFi based blockchain projects, how do you plan to maintain and enhance your competitive advantage? 

We do not intend to directly compete with existing DeFi projects because they target only the crypto-savvy users who are few in number. We actually integrate them to give more value to our target audience.

Our target audience is quite different from the existing DeFi audience. We target non-crypto users, financially underserved users and users in unstable economies that need their assets to be protected by any means necessary. We are the answers to their prayers. 

Q: Can you tell us about your future plans for this project? How do you plan to expand? 

Our long term vision is to have up to 10% of the union members actively using our platform annually. 

We’ll start with abstracting the complexity of the blockchain, thanks to a simple and responsive UX, easy to integrate SDK, we will be facilitating the onboarding of non-crypto savvy users, hence allowing liquidity to flow from the non-crypto world into DeFi.

Also, we’ll make life easy for software engineers by abstracting the complexity of building directly on the blockchain with our mobile and web SDKs. The SDKs make it easy for non-blockchain software engineers to plug into DeFi. 

Q: What was your reason behind starting Xend Finance and how did you come with the idea?

 Xend Finance was formed from the need to protect the value of the savings and contributions of individuals who use fiat currencies from devaluations as a result of unstable economies. 

We experienced 3 massive currency devaluations in the last 3 years in Nigeria and this is similar to different economies in the world with unstable economies. My mother and I belong to different cooperatives where we save and make monthly contributions (Esusu) to help one another in the cooperative. Realizing that despite saving regularly we were becoming poorer and losing more value for our money, this gave birth to Xend Finance. 

Xend Finance is built to save our money in a decentralized stable currency and also earn interest in that stable currency, hence protecting our assets. It is also designed to extend our contribution strategy called Esusu to a much larger audience without the fear of defaulting and also with the advantage of very high returns. 

Q: Can you tell us a bit about your team and how are they aligned with your core vision for the project? 

I have an engineering background and I lead the blockchain engineering team at Xend Finance. My team has experience in engineering, marketing and community development in the crypto space. We are majorly based in Nigeria with a marketing team based in the US and other parts of the world.

Disclaimer The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.