Published in


Lockup-Free Goldfinch Investment is Here, Powered by AlloyX

AlloyX’s new Goldfinch integration allows existing and new investors to capture the yields of fixed-term lending while preserving liquidity — here’s how

We’re excited to announce an integration that now offers a new level of financial freedom to Goldfinch backers. AlloyX, a liquid staking protocol for capital markets, has integrated with Goldfinch to allow backers to exit and enter investment opportunities previously requiring long-term commitments. AlloyX promises new and existing backers with a simple and powerful option to access the lending market without forfeiting yield or liquidity.

AlloyX will offer liquid access to Goldfinch’s yield-generating Backer Pool investments with zero capital lockups. Backers will be able to quickly manage their lending positions in response to changing market trends or individual needs, a crucial ability in volatile crypto markets.

By integrating into the Goldfinch credit market, AlloyX will make liquidity on locked-up loan obligations a reality, and backers need no longer choose between liquidity and investment on unique earning opportunities.

Rise of Credit Lending

Collateralized loans are the backbone of lending in the DeFi space. Because credit protocols like Goldfinch employ new methods of underwriting and credit rating for would-be borrowers, they can reach unique investment opportunities and offer higher returns generated by real-world economic activity.

Being a globally accessible credit protocol, Goldfinch brings lending on-chain while expanding access to capital. Goldfinch facilitates crypto loans without requiring crypto collateral, creating greater financial opportunities for a broader base of investors.

Goldfinch enables non-crypto businesses to receive crypto loans by relying on decentralized ‘trust through consensus’ to ascertain a borrower’s risk. The approach involves evaluating on- and off-chain factors, and its borrowers range across secondary markets. Currently, Backers investing in Borrower Pools on Goldfinch are required to contribute principal for the loan’s entire term to generate higher yields, as with most credit protocols. However, the caveat of lending to protocols with high APYs comes in often lengthy three-year lockup periods.

While capital lockups are used to preserve liquidity and maintain market stability, they come with an air of uncertainty as lenders aren’t able to access their funds for a predetermined period. The current bear market has sparked fear among some DeFi users as projects liquidated crypto holdings due to token price drops.

Enter AlloyX: Unlock Your Liquidity

AlloyX is a liquid staking protocol that alleviates the pressures associated with capital lock ups by enabling users to access loans issued to businesses by credit protocols without being subject to holding periods. Through AlloyX, users will get immediate access to locked liquidity in high APY positions.

By providing flexibility to those seeking USD-based yield, AlloyX allows users to:

  • Earn higher USD-based yields with greater liquidity.
  • Deposit USDC with no minimum amount while accessing underlying asset diversification.
  • Access vetted loans which reduces the risk of losing USDC to malicious borrowers.
  • Leverage positions with other dApps and protocols.

By removing lockup requirements, investors can capitalize on the full scope of Goldfinch lending opportunities. This partnership benefits both new and existing Goldfinch lenders:

New AlloyX lenders interested in Goldfinch opportunities may deposit their funds directly into AlloyX, which allocates capital into vetted junior investment opportunities in Goldfinch’s Borrower Pools with pooled funds.

For existing Goldfinch lenders, AlloyX will enable Backers to deposit their junior position NFT into the DURA vault in exchange for DURA tokens. DURA holders will be able to sell their DURA through exchanges, or redeem it for USDC held in the DURA vault. The depositor of an NFT in the DURA vault can also redeem their NFT at any time for a 1% fee.

Closing Thoughts

Goldfinch is building a decentralized credit platform that empowers financial inclusion, while AlloyX provides liquid staking for crypto loans to real world businesses. AlloyX’s technical capabilities in serving liquidity to lending opportunities, paired with Goldfinch’s globally impactful crypto lending protocol, will offer backers a more capital efficient credit solution.



Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Goldfinch Foundation

Goldfinch Foundation


Goldfinch is a decentralized credit protocol that allows anyone to be a lender, not just banks.