Facilitating more transparency between Borrowers and Investors on Goldfinch

New tooling now enables improved transparency for Goldfinch participants: here’s how to access it

We’re excited to share changes the community is making to standardize and improve the communication between Borrowers and Investors on Goldfinch.

As the scale of borrowing on Goldfinch grows, there is increasing demand from the Goldfinch community for more efficient channels of communication between Investors and the Borrowers on the protocol. In response to this, the community is introducing standardized channels to allow Borrowers to share updates on their pools and to communicate directly with the protocol’s Investors.

This new Borrower Communications tooling, first of its kind to use web3 solutions for investor reporting, will provide even more transparency for Goldfinch Investors by providing them with easy access to information like:

• Trusted, secure, real-time communication channels between Borrowers and Investors
• Accessible way for Borrowers to fulfill any and all obligatory Investor Reporting requirements, creating easier inroads to access the reporting that exists in their off-chain documents and agreements
• More effective channels for Investors to securely communicate with one another, enabling enhanced collective bargaining power

New communication channels to meet Investor needs

For each Borrower Pool on Goldfinch, there will now be two channels launched:

1. A token-gated Discord channel where the Borrower can communicate with Investors (both Backers and Senior Pool LPs) to provide updates, and where Investors can discuss the Pool amongst themselves. This will be managed by the Goldfinch community.
2. A password-gated Dataroom where Borrowers will post all necessary documents that they are obliged to provide as part of their off-chain legal agreements with Investors for compliance, reporting, and evaluation. This will be managed by the Borrower in line with what their existing real-world agreements require.

Each channel has a unique configuration to ensure that Investors are able to easily access the differing levels of information they need from Borrowers, while ensuring the confidentiality of the Borrowers’ proprietary information is accommodated.

Channel #1: token-gated Discord channel

For every Borrower Pool on the Goldfinch protocol, there will be a community-managed Discord channel launched in the Goldfinch Discord. This channel will be configured to permit access for:

• Backers invested in the Borrower Pool in question, who possess at least one pool token representing the Backer’s participation in the Borrower Pool
• Liquidity Providers in the Senior Pool who possess at least 10,000 FIDU tokens or staked FIDU tokens, representing approximately a $10,000 investment to ensure that the LP’s accessing this proprietary data have adequately aligned incentives to protect a Borrower’s best interests.
• The token-gating configuration is executed using the Guild tool to grant access only to Backers and Senior Pool LPs as described above.

The primary purpose of this channel is to facilitate asynchronous communication between Borrowers and Investors. These communications can take a number of forms, including:

• Borrowers informing the capital providers that an update has been made to the Pool’s Dataroom
• Borrowers answering questions posted by the Investors in the channel
• Borrowers confirming to Investors that an interest payment has been made

Channel #2: password-gated Dataroom

Each Borrower Pool will also launch a password-gated Dataroom where Borrowers can share documents pertinent to the Borrower Pool in question. This will be managed by the Borrower.

At a minimum, the Dataroom for each pool will contain the following documents:

1. All fully executed legal documents related to the specific pool
2. All waivers, amendments, and default notices
3. Covenant compliance certificates
4. Quarterly investor updates
5. Portfolio level reporting

These minimum standards for Datarooms are defined in place of uniform reporting requirements to ensure that, as Goldfinch scales, the wide and growing variety of Borrower types can be accomodated without creating difficulties for community enforcement. In the future as new pools open, Investors can require specific documentation that might not fit every Borrower be provided as needed.

How to access the Goldfinch Borrower Communication channels

Investors (Backers in the pool or Senior Pool LPs with at least 10,000 FIDU or staked FIDU tokens) can join a Pool’s Token-gated Discord channel in two easy steps: visit the Goldfinch Discord channel, and enter the #guild-join channel to verify your assets.

Once asset verification is complete Investors will be able to access the token-gated channels for any of their Pools. You can follow the step-by-step instructions for this process in the Goldfinch Documentation.

In order to acccess each Pool’s password-gated Dataroom, Investors need only enter the appropriate token-gated Discord channel for that pool. There will be a pinned message containing directions for accessing the password-protected Dataroom in the channel so that Backers or LPs can easily access the Dataroom password by verifying their wallet assets.

At the time of publishing, these channels have launched for the Asset-Backed Pool via Addem Capital. Eligible Investors can access these channels by verifying their assets here. Borrowers are launching these communication channels on a rolling basis and the channels for remaining pools are expected to go live in the coming weeks.

You can learn more about the Borrower communication channels in the Borrower communication section of the Goldfinch documentation, or follow the step-by-step guide to get started.

We hope this provides capital providers with a more efficient way to engage with borrowers on the protocol, and be up-to-date on the performance of Borrower Pools. If you are a capital provider and have any difficulty accessing these channels, please reach out to the Goldfinch community in the #support channel on Discord.

What’s next?

To learn more about Goldfinch and the different roles Investors on the protocol play in the network, read the protocol overview, or sign up for The Goldfinch Foundation’s weekly Community Update. For timely updates on upcoming Borrower Pools, and notifications when Borrower Pools open for Backer investment, sign up for the Backer Updates email list.