Florence Finance

SME invoice financing on-chain.

SME invoice financing on-chain.

- Loan Vaults: On-chain vaults that hold portfolios of real-world SME loans grouped by a common denominator (originator, geography, or risk/reward). Depositors fund vaults with flrEUR and receive vault tokens representing a claim on the underlying loan portfolio and its interest. Live vaults include Caple (Arbitrum), Junior/SwishFund (Arbitrum) and Avellinia (Base). - flrEUR (Florin / FLR) token: Euro-denominated stablecoin-like instrument minted when a new loan is funded and burned when a loan matures and is repaid. It is intended to be 1:1 redeemable for EUR via the protocol Treasury, and is used to deposit into loan vaults. Secondary liquidity is provided via DEX pools (e.g. Camelot/Uniswap). - FFM (Florence Finance Medici) token: The protocol's native governance and utility token (ERC-20). A portion of real-world interest from loan vaults is used to buy back and burn FFM from the open market. Governance holders are intended to approve collateral and lending terms as the protocol decentralizes. - Treasury: Contract that holds loan repayments and enables 1:1 flrEUR-to-EUR redemption. If the Treasury is empty, participants rely on secondary-market DEX liquidity to exit positions. - SME lending partners / originators: External, vetted credit providers (e.g. Caple, SwishFund, Avellinia) that source and manage SME/private-credit exposure. Florence acts as a wholesale funder / re-distributor of their diversified credit rather than originating loans itself, and does not use leverage or fractional reserves.

- FFLR (FFLR) — Token, Governance token

- Counterparty: Credit / borrower-default risk is the primary risk: repayment depends on European SMEs and the lending partners (Caple, SwishFund, Avellinia) that originate and manage the loans. Current rollout vaults intentionally target the riskier junior/subordinated/2nd-lien end of the credit spectrum. - Reserve / Depeg: flrEUR is intended to redeem 1:1 for EUR via the Treasury, but if the Treasury is empty redemption depends on secondary-market DEX liquidity, which can cause the flrEUR market price to deviate from its EUR peg. - Governance: Due diligence, collateral approval and lending-term decisions are currently centralized with the Florence team, with decentralization to FFM governance stated only as a future goal, creating key-person and centralization risk. - Smart Contract: Vaults, tokens and Treasury are governed by smart contracts; despite audits and a multi-year live track record, contract bugs or exploits could impair funds. The protocol depends on cross-chain deployments across Arbitrum, Base and Ethereum. - Regulatory: Providing euro-denominated private credit to European SMEs and issuing a EUR-pegged instrument exposes the protocol to evolving EU financial-services, lending, securities and MiCA-style regulation across multiple jurisdictions.

- Private-credit / direct-lending fund: similar — Both pool investor capital to provide non-bank financing to SMEs and earn the credit spread, taking on borrower default risk in exchange for real-world yield uncorrelated to public markets.; differs — Florence tokenizes the exposure (flrEUR + vault tokens) so it is transferable and composable in DeFi, is euro-denominated and permissionlessly accessible, and offers on-chain transparency and secondary liquidity rather than multi-year lock-ups and high minimums of a traditional fund. - Invoice factoring / working-capital finance: similar — Like factoring, several vaults (e.g. Caple) fund short-term working-capital SME loans, providing an alternative funding source to specialist lenders.; differs — Florence is a wholesale funder that re-distributes exposure from existing originators on-chain with no leverage or fractional reserves, versus a factoring company that directly buys receivables and warehouses them on its own balance sheet.