Goldfinch Protocol Introduction: project and protocol overview

Let me introduce the new project — Goldfinch Protocol.
Its main idea is to allow you to borrow in cryptocurrency without cryptocurrency collateral. Goldfinch is a decentralized lending platform that aims to build an open credit platform and expand financial inclusion all over the world.

Goldfinch is a decentralized credit protocol that is supported by world-class investors and allows everybody to be a lender. This means that an ordinary person can lend money to others.

DeFi has the potential to shift the structure of the whole financial system. To fulfill this, loans must be extended without collateral. This will finally allow many people to lend their capital directly to borrowers. And that’s what Goldfinch is aiming to create.

Be sure that this is a real original project. Just look at the funds that have been invested in this company:

Goldfinch Mission — to build a decentralized credit platform that empowers financial inclusion.

They believe there’s vast untapped lending potential in the world. It’s expensive to be a bank today, and this limits the kinds of lenders that can operate. But there are thousands if not millions who could lend with the right system. They’re building a platform that empowers anyone to be a lender, not just banks.

On the roadmap they have 3 phases to perform:

1. Build a “credit fund on crypto” that makes off-chain sources of yield available and composable on DeFi.
2. Decentralize the network to allow anyone to propose or evaluate loans, not just the Goldfinch team.
3. Support smaller and smaller lenders so that anyone can be a lender through the protocol, even individuals.

Let’s consider the scheme of Goldfinch Protocol and how it works.

There are four core participants in the Protocol:

1. Borrowers are companies that are looking for a loan. Borrowers create pools that are evaluated by sponsors.
2. Sponsors are people who evaluate the pools of borrowers, make a decision on issuing a loan, and invest their own capital with the risk of non-payment of the first payment of the borrower.
3. Liquidity providers are people who provide funds to the Senior pool, from where the capital is distributed to the pools of borrowers.
4. Auditors are people who check borrowers for solvency. Sponsors rely on the opinions of auditors when issuing a loan.

>>>Liquidity providers provide capital to the Senior pool. The protocol automatically distributes the Senior Pool between the Senior tranches of the borrower pools.

>>> Borrowers offer pools (with conditions such as an interest rate) for evaluation by sponsors.

>>> Sponsors provide capital to Junior tranches of borrower pools.

Goldfinch already actually serves borrowers through three companies — partner with highly reputable lending businesses with years of strong performance:

1. QuickCheck is based in Nigeria and provides loans to consumers through special applications.
   QuickCheck is a Nigerian fintech startup with the mission of providing financial services to underserved consumers. Through data science and a smartphone app, it builds a credit profile and enables Nigerians across the country to access microloans from their phone within minutes, without the need for any form of collateral or guarantor.
2. PayJoy. PayJoy’s mission is to deliver access to credit to the next billion people in emerging markets worldwide. Our unique mobile locking technology gives customers the ability to afford their first smartphone on credit, using the phone itself as collateral, and then provides further access to credit to help weather life’s unexpected financial surprises and climb the ladder of economic well-being.
3. ALMA is a loan fund and the first borrower to raise capital directly from sponsors through a pool in Goldfinch. ALMA uses innovative technology to provide creative debt financing to companies with a positive social impact. They provide debt capital globally to high-performing companies in a variety of sectors, including small business and consumer credit, climate finance, sustainable/regenerative agriculture and more. Below are just a few highlighted markets.

But, this is just the beginning for Goldfinch. It still has a long way to go before its main vision can be achieved.

Goldfinch has a very strong team.

Goldfinch’s co-founder, Michael Sall, graduated from the Wharton School and previously served as a product manager at Adobe and head of digital science at Medium. Then, in 2018, Michael Sall joined Coinbase as head of product analytics. Eventually, Goldfinch was founded in mid-2020.

Blake West, who also graduated from Wharton as Goldfinch’s co-founder and CTO, went on to work as an engineer at various companies before joining Coinbase in 2018 to run the technology backend.

While the Goldfinch product is not yet fully available to a wide range of users, as an important gateway between traditional finance and the Defi world, Goldfinch will help amplify the value of crypto assets and provide more access to money for people in the off-chain world.

Goldfinch invites everyone to build a strong community, aiming at bringing together like-minded people who are headed for the same goal.

Join their Discord: https://discord.gg/4vvDjXxd

Reach out to them on Twitter: https://twitter.com/goldfinch_fi

Read more about them on Medium: https://medium.com/goldfinch-fi

This article is written by Nina#6340