Goldfinch GFI

1. Summary

Ranks

Liquidity

50

Developer

-

Social

86

Momentum (beta)

53

Stack Rank™

-

Price

$2.80 +7.3%

Market Cap

$217.08M (#231)

Supply

76.02M / 114.29M

Tags

DeFi Lending/Borrowing Ethereum Ecosystem Real World Assets (RWA) Coinbase Ventures Portfolio Andreessen Horowitz (a16z) Portfolio

More Metrics

Price
52W High price	$5.46
52W High date	2nd Apr 2024 (3 months ago)
All Time High (ATH) Date	11th Jan 2022 (2 years ago)
ATH Price	$32.94
% From ATH	-92.08%
All Time Low (ATL) Date	19th Jun 2023 (1 year ago)
ATL Price	$0.29
% From ATL	798.46%

Supply & Trading Volume
Trading Volume (24h)	$2.03M
Total Supply	114.29M
Max Supply	114.29M
Circulating Supply	76.02M

Less Metrics

Description

Goldfinch is a decentralized credit protocol that brings crypto loans to the real world, with a mission to expand access to capital and foster financial inclusion. It allows for uncollateralized loans by leveraging “trust through consensus” among its users, ensuring that borrowers are assessed based on the collective actions of backers and auditors...

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Goldfinch is a decentralized credit protocol that brings crypto loans to the real world, with a mission to expand access to capital and foster financial inclusion. It allows for uncollateralized loans by leveraging “trust through consensus” among its users, ensuring that borrowers are assessed based on the collective actions of backers and auditors rather than relying on crypto collateral.

The platform has three key roles:

• Investors (Lenders): Provide USDC to the protocol, which is then used by borrowers. They can be further segmented into Backers and Liquidity Providers (LPs). Backers assess individual Borrower Pools and lend directly to them as first-loss capital to earn the highest yields. LPs provide second-loss capital to the Senior Pool, which automatically diversifies the deposited funds across all Borrower Pools based on the assessment of backers.

• Borrowers: Institutions that seek financing through Goldfinch and add a Borrower Pool to the platform. Borrower Pools consist of a junior and senior tranche. Backers lend funds to the junior tranche, while LPs lend funds to the senior tranche. When a borrower makes a repayment, the payment is first applied to any interest and principal owed to the senior tranche, followed by any interest and principal owed to the junior tranche.

• Auditors: Users who vote to approve borrowers, which is required before proposing a new Borrower Pool to backers. Auditors are randomly selected to provide an assessment of the borrowers for any fraudulent activity and earn rewards in return.

Goldfinch determines how the Senior Pool funds are allocated through the concept of "trust through consensus," which relies on trusting the collective actions of backers and auditors. This is achieved by ensuring all participants have unique identities (UID), a non-transferrable NFT representing KYC and/or US investor accreditation verification on-chain.

The protocol retains 10% of all interest earned in a Borrower Pool as a protocol reserve, managed through decentralized governance. Additionally, there is a 0.5% withdrawal fee from the Senior Pool that is allocated to the protocol reserve.

Users can earn lending fees on Goldfinch by depositing their assets to be used by institutional borrowers in either the Senior Pool (as an LP) or individual Borrower Pools (as a backer). Goldfinch further enhances its yield by offering its native GFI token as an additional incentive.

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