Florence Finance
  • Protocol Overview
    • ⚜️Welcome to Florence
    • ❔How it works
      • Introduction
      • Overview
      • Primary Funding
      • Tokens
    • ⚙️Architecture
      • Protocol Structure
    • 🧩Composability
    • 📊Analytics
    • 3️⃣Florence V3
    • ➡️Roadmap
  • Earn FFM
    • 📈How to earn FFM rewards?
  • DUKE DASH
    • 👑Duke Dash Incentives
    • 🐸Duke NFTs
    • 🪙How to earn points?
      • 🪂What are points?
      • 🛡️Badges
    • ❓Duke Dash FAQ
    • 📗Tutorial
  • Tokenomics
    • 📊Tokenomics
      • FFM Token
      • Token Addresses
  • Support
    • 📖Content Library
    • 📚Tutorial
      • How to buy flrEUR?
      • How to use the Vaults?
    • ↔️Migration
    • 📖Glossary
    • ❓FAQ
    • 🔗Useful Links
    • ⛓️Smart Contracts
    • 🔎Audits
  • Resources
    • 📄Whitepaper
    • Media kit
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  1. Protocol Overview
  2. How it works

Introduction

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Last updated 8 months ago

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Introduction

Florence Finance is a means of giving funders direct SME credit exposure without any liquidity guarantee, not dissimilar to peer-to-peer lending. The innovation lies in the fractionalization and the grouping of underlying loan exposure to allow for a portfolio approach to investing, thus mitigating concentrated credit risk whilst facilitating liquidity through secondary trading of the tokens that represent underlying funding commitments.

The Florence Finance platform will comprise various Loan Vaults, which provide access to underlying portfolios of SME loans (collateral) with some common denominator, whether the originator, geographic origin, or risk/reward parameters.

Initially, Florence Finance will have three Loan Vaults:

  1. Firstly, the “Caple” Loan Vault (on Arbitrum) will comprise loans originated by our partner with whom we have launched a novel, ESG-compliant, short-term (<12m) working-capital-focused loan product.

  2. The second “Junior” Loan Vault (on Arbitrum) will be focused on funding smaller amounts of junior funding to launching borrowers, starting with in the Netherlands.

  3. The third "Avellinia" Loan Vault (on Base) through Avenllinia Capital provides capital to responsible alternative European lenders/originators of financial assets furnishing targeted financing to SMEs and consumers, where these are not served well by traditional providers of capital.

At the outset, these Loan Vaults will be limited in size and likely concentrate on the riskier end of the credit spectrum (i.e., junior/subordinated/2nd lien lending). This roll-out phase primarily aims to build the required infrastructure (payments, controls, admin, accounting, legal & compliance) and test it before we scale further.

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Caple
SwishFund
Active vaults