Goldfinch Finance is a project that delivers practical innovation to the bitcoin market. The DeFi sector in the crypto realm is rapidly expanding; every week, we hear about new projects, partnerships, and investments totaling tens and hundreds of millions of dollars. Goldfinch is a system for unsecured lending that is decentralized. Where anyone can borrow money at a lower or higher risk, or obtain a loan at a reasonable interest rate.

https://youtu.be/o00W0ejI-TM

What is Goldfinch Finance?

Goldfinch Finance is a finance company that provides collateral-free crypto loans through decentralized finance (DeFi). This is the missing piece of the puzzle that permits crypto financing for a small number of people all over the world.

This organization is named after the European Goldfinch, a bird that embodies the guiding ideals of dependability and consistency.

One key disadvantage of current crypto lending protocols is that they require crypto over-collateralization, which prevents the vast majority of borrowers from participating. The Goldfinch protocol incorporates the notion of “trust by consensus,” allowing borrowers to demonstrate trustworthiness based on the collective assessment of other participants rather than their crypto assets.

The protocol can then utilize this group assessment as a signal to automatically allocate capital. By eliminating the need for crypto collateral and providing a way for passive income, the protocol significantly expands both the potential borrowers who can access crypto and the potential capital providers who can get exposure.

Outstanding Features

What is the project trying to achieve?

They intended to construct from the start for the borrowers who would gain the most and where crypto could have the largest impact. As a result, they began with lending operations in emerging markets. They have the most to gain (and the highest demand) since traditional finance’s inefficiencies limit the amount of cash that can flow into these markets. It’s also where crypto flourishes, because of its liquidity and global reach. Here’s how they intend to proceed:

Phase 1: Credit Fund on Crypto

The current version of the Goldfinch protocol functions similarly to a credit fund, except that it is based on cryptocurrency. To begin, they are acting as the initial underwriter, examining lending firms and establishing terms. This is an important step in making this real-world source of yield available on-chain and composable with the rest of DeFi.

Phase 2: Decentralized Underwriter Network

Anyone will be able to underwrite using the protocol. Underwriters will be able to evaluate enterprises and place junior debt capital in them. In exchange for undertaking this job, they will obtain greater yields through fees from passive senior debt investors. This will allow the protocol to scale the underwriting process and enroll new lending enterprises fully through the community.

Phase 3: Long Tail of Lenders

The protocol will support smaller and smaller lenders that do not yet have loan servicing infrastructure to the point where anyone, including people, can issue loans. The protocol will accomplish this by moving end-user loans onto the blockchain, giving self-service lender tools, and establishing a thriving underwriter marketplace.

What is the unique selling point?

Goldfinch includes four important figures:

• Borrowers who are looking for a loan and forming pools (these pools are further evaluated by Backers).
• Backers, who assess borrower pools and decide whether or not to offer financing. If Backer contributes capital, the borrower borrows and repays funds through the borrower pool.
• Liquidity providers, who make cash available via a smart contract to automatically allocate capital to groups of borrowers.
• Auditors, who investigate borrowers for fraud and other wrongdoing. They are the ones who vote first on whether or not to approve loans. Only then can borrowers contribute monies to the pool. This is done to mitigate fraud as much as feasible.

Consider the distinction between a senior liquidity provider and Backers. They each have their own pool, which is distributed to the borrower at a four-to-one ratio. They each hold 10% of the loan to the reserve pool’s return. The pool owned by the senior liquidity provider receives a fee on loan income in the form of the Backers’ 20% Junior Pool. This is done because the Backers go above and beyond in terms of checking.

With over 10,000 borrowers and increasing more in the future

Thousands of borrowers across India, Mexico, Nigeria, and Southeast Asia are served by the Goldfinch platform. They’re excited to inform you that the protocol went live in December, with several very recognized lending companies participating, including PayJoy in Mexico, QuickCheck in Nigeria, and more to come. These partners have a track record of success and are ready to expand, now with the support of cryptocurrency.

So far, they have taken $1 million through the Goldfinch protocol and distributed it to thousands of their end borrowers. And it’s already having an effect. To name a few, the funds are being utilized to assist people in Mexico in purchasing cellphones, to cover short-term needs in Nigeria, and to purchase equipment for business operations in Vietnam.

Stable 10%+ yield

High-quality borrowers are expected to provide 10-14% APY from non-crypto activity.

Roadmap

We will update this information right when the project announces its official information.

Technical Data

Key Metrics

• Token Name: Goldfinch.Finance
• Ticker: $FIDU
• Blockchain: Ethereum
• Token Standard: ERC-20
• Contract: TBA
• Token Type: Governance
• Total Supply: TBA
• Circulating Supply: TBA

Token Allocation

We will update this information right when the project announces its official information.

Token Sale

We will update this information right when the project announces its official information.

Token Release Schedule

We will update this information right when the project announces its official information.

Token Use Case

We will update this information right when the project announces its official information.

How to own the token?

We will update this information right when the project announces its official information.

Markets and Community

It is worth mentioning that Governance is managed by a community DAO and has the ability to perform maintenance functions and parameter adjustments via decentralized governance votes, including:

• Upgrading contracts
• Changing protocol configurations and parameters
• Selecting Unique Entity Check providers
• Setting the rewards and distribution of GFI
• Pausing protocol activity in the event of an emergency

You can join and update more detailed information on their Discord server.

Backers

Team

Investor & Advisors

• 

• 

Andreessen Horowitz led the $11 million fundraising round for Goldfinch (a16z). Along with Mercy Corps Ventures, A Capital, SV Angel, Access Ventures, Divergence Ventures, Defi Alliance, Draft Ventures, Balaji Srinivasan, Wale Ayeni, Ryan Selkis, Jason Choi, Josh Hannah, Lisa Cuesta, and Viktor Bunin…

In conclusion, the creators have a clear development plan, investors, and a fairly large team of professionals in their field, everything you need to become the best!

Alternative Project

There are several projects that have some similar concepts such as Maple, TrueFi but both of them are targeting the institutional market. Institutions have more abundant assets, less risk of default, and a large number of borrowings. Therefore, the value of due diligence on these borrowing institutions is higher. On the other hand, Goldfinch has set its sights on developing countries and wants to solve the borrowing problem of long-tail users.

The bank does not know the borrower and the underwriting fees are high, which may cut off long-tail users. For example, a user in Bogotá wants to fund the purchase of a motorcycle for his delivery person on foot, but without capital, the bank is unwilling to provide loans for it. Goldfinch uses a decentralized underwriting process to allow everyone to lend in ways that current banks cannot provide.

There are numerous persons in the world who can locate and evaluate new sources of credit. If bank administration costs can be eliminated and individuals all across the world can collectively judge, this route has a lot of potentials. There is no need for collateral to acquire a loan from Goldfinch. As the project progresses, Goldfinch will construct a decentralized network to allow anybody to submit and evaluate loan proposals, as well as support more long-tail lenders until everyone may lend using Goldfinch funds.

• 

• 

Conclusion

The most significant advantage of Goldfinch.Finance over other loan platforms is that it enables crypto borrowing without requiring crypto collateral. One key disadvantage of current crypto lending protocols is that they require crypto over-collateralization, which prevents the vast majority of borrowers from participating. The Goldfinch protocol incorporates the notion of “trust by consensus,” allowing borrowers to demonstrate trustworthiness based on the collective assessment of other participants rather than their crypto assets.

This communal judgment can then be used as a signal by the protocol to automatically allocate capital. The protocol significantly expands both the prospective borrowers who may access crypto and the potential capital providers who can get exposure by eliminating the need for crypto collateral and providing a way for passive income.

Overall, Goldfinch. Finance is the first financing platform that is similar to a loan but does not have to be based on the retailer’s analysis of the position, which is accepted by the Auditors. The audience is seeking the highest rank procedure, and the smell will be sure to change the names of the people who will take over from the frauds. Knowing the necessity for a cryptocurrency outpost and providing it for passive arrival, the protocol of the rapidly developing possible positions.

Find more information about the project:

Website: https://goldfinch.finance/

Whitepaper: https://goldfinch.finance/goldfinch_whitepaper.pdf

Twitter: https://twitter.com/goldfinch_fi

Telegram: https://t.me/goldfinch_finance

Discord: http://discord.gg/goldfinch

If you have any questions, comments, suggestions, or ideas about the project, please email ventures@coincu.com.

KAZ

Coincu Venture