September 24, 2021

Goldfinch - unsecured lending in the world of cryptocurrencies!

Goldfinch is a decentralized platform that allows anyone to become a lender. Goldfinch will be useful in regions where the banking network is not developed and is not able to cover the entire demand for loans.

The main distinguishing feature is that the protocol does not require the protection of any cryptoassets. Borrowers can enter into offline agreements with sponsors to create other types of collateral not related to cryptocurrency.

It will become much easier to track the credit history of borrowers, which means that it will react faster to the appearance of new loans and their registration.

Goldfinch Finance is the future of the decentralized credit system today!

The Goldfinch protocol has four main participants: borrowers, sponsors, liquidity providers, and auditors.

Let's take a closer look at sponsors and liquidity providers.

Liquidity providers provide capital to the senior pool for passive profit. Pool Senior uses a leverage model to automatically allocate capital to a pool of borrowers based on the number of sponsors involved. When the senior pool distributes capital, a portion of its share is redistributed among the sponsors.

This increases the effective profitability of sponsors, which encourages them both to provide capital with an increased risk of initial loss, and to perform the work associated with evaluating the pool of borrowers.

Sponsors are people who value a pool of borrowers and invest their own capital at the risk of not repaying the borrower's prepayment.

Considering that Goldfinch creates an open lending platform for ordinary people, which expands access to financial services for small and medium-sized lenders, I consider the project promising, which will open access to cryptocurrency, unsecured lending for people around the world.

Let's see what will happen, but now this is really a new step in the industry and in project financing. All that remains is to believe that all funding will be reliable and properly protected, and that all investors will receive their funds back with a well-deserved profit.

Goldfinch makes life better! Website -