GoldFinch — project overview

GoldFinch is a decentralized credit platform that provides an opportunity to become a lender to anyone, not just banks.

Every year it becomes more and more difficult for investors to find good sources of profitability. For example: if you pay attention to bonds, you will notice that the rates on them have reached the lowest values for all time. For this reason, investors have a strong need for a new financial instrument and GoldFinch is able to provide it.

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Let’s start with the fact that there are 4 roles in the project in total:

  1. Liquidity Providers — ordinary users who provide their funds to the senior pool (from which they will issue loans) to receive passive income at the expense of monthly commissions from loans.
  2. Borrowers — companies that want to take out a loan through the project. To do this, they create a pool of borrowers — a smart contract that describes the conditions (such as the interest rate and repayment schedule) on which the borrower wants to take out a loan. It goes to the sponsors for evaluation.
  3. Backers — evaluate the pools of borrowers. If they are satisfied with everything, they provide the company with 20% of the loan with their own money, thereby taking most of the risks on themselves, and only then another 80% of the necessary funds are issued using the senior pool. They often conclude legal agreements with borrowers, thereby creating the opportunity to sue them in case of non-payment of the loan.
  4. Auditors are those who will evaluate companies before allowing them to take out a loan. They look at all kinds of information about the company and its employees. If it stops paying off the loan, then this information is made public to future creditors, and not only on the web.

To understand exactly how lending works, just look at this scheme:

The amount that borrowers can borrow depends on the volume of the offer of sponsors and liquidity providers. If the borrower defaults on the loan payment, then he is charged interest on top, stipulated in the same smart contract.

In addition, the project has its own $GFI token, it is used for:

  • Management votes
  • Bids of sponsors and auditors
  • Remuneration for the vote of auditors
  • Rewards for early sponsors

To apply for a loan, the company must first deposit a certain amount of $GFI, which is equal to twice the payment to the auditor. Half will go to the latter, and the remaining part will be returned when the full loan amount is paid. Sponsors also receive income from commissions, a couple of times more than ordinary liquidity providers.

GoldFinch already has a couple of successfully credited projects, here they are:

Project Team:

And do not forget about investors, they are strong and there are not a few of them:

In conclusion, I want to say that I really liked the project. Against the background of Aave or Compound — the leaders of the lending market, which, although they are completely decentralized, cannot provide the desired services, GoldFinch looks like an excellent alternative.

The creators have a clear development plan, investors and a fairly large team of professionals in their field — everything you need to become the best!




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