Let’s learn about Goldfinch

Have you ever had an idea that is so inovative and useful that it was your dream for it to become true? But you didn’t have enough money to make it happen?

Well, That’s a quite common situation. That’s why people try to get loan in bank or crypto loan nowadays. However as we all know it is not that possible to get a loan. You have to have some money for that. But what if the idea is all that you have?

Let me introduce you the Goldfinch protocol! This is a project that will help anyone make their dream happen even without start-up capital. It only requires collective assessment. Sound unrealistic? Hold tight and see how exactly it works.

First of all we have Borrowers, obviously. They have a project idea and ask for loan.

The decision of whether this idea is worth sponsorship or not is the Auditor’s responsibility. They stake the project’s token GFI to have a chance to vote for the project. There can be many criteria that affect their desicion but their main goal is to choose the best project possible.

The money that the Borrowers borrow (sorry for that repetition) comes from two Pools — Junior and Senior. Junior Pool is created by Backers’ investment. It makes the first-loss capital, sadly. But the reason why a Backer would want to participate in such thing is the opportunity to get a lot of profit from that. I’m talking about early Backers’ rewards and high effective yields.

The second Pool is called Senior Pool as I mentioned before. It consists of Liquidity Providers’ capital. They provide diversification across Borrower Pools and seniority to the first-loss capital of Backers. Part of their money reallocates to Backers in order to minimize their risk. Staking on the Senior Pool gives Liqudity Providers the opportunity to earn token FIDU. Also they earn passive yield from their investment.

The visual representation on how exactly the Senior Pool is diffrenet from Junior Pool is demonstrated below.

This is a quick introduction to the Goldfinch protocol! It would be an honor for me to tell you more about it in the nearest future!

Thank you for the attention and good luck everyone participating in the Flight Academy!