Goldfinch

Feb 20, 2023 | DeFi, Projects

The decentralized credit protocol for crypto loans to real businesses.

Goldfinch – The uncollateralized loan protocol for businesses.

 

Problem

  • The crypto-lending market is increasing its total value each year, however there is a vast untapped capital due to numerous lending market barriers
  • Borrowers are discouraged by overcollateralized lending requirements, and lenders are held back with high barriers of entry.

Solution

  • Meet Goldfinch, the decentralized credit protocol for crypto loans to real businesses .
  • Goldfinch introduces loans without collateral, while decentralising the lending process and thus opening the world of lending for the masses..

Value Proposition

  • Goldfinch removes the usual lending market barriers by allowing anyone to be an underwriter, assess businesses and stake junior capital on them.
  • Underwriters in turn earn yields via commissions from senior debt investors
  • In this way access to capital is expanded to emerging markets where crypto can truly empower financial inclusion. 

Underlaying Magic

    • The protocol works by extending credit lines to lending businesses, who then exchange it for fiat and deploy in their local markets to empower businesses and projects.
    • On the investor side, crypto holders can deposit into the lending pool to earn yield through interest payments.

    Business Model

    • High-quality borrowers provide expected 10-14% APY from real-world activity uncorrelated with crypto. 
    • In this way liquidity providers are incentivized to lend money as they get paid back through interest payments.