Goldfinch Finance is a decentralized finance (DeFi) credit platform that offers collateral-free crypto loans. This is the missing piece in the puzzle which enables crypto lending for a handful ofhandful amount of people around the world.
This organization is named after the European Goldfinch, a bird that reflects the guiding principles of trustworthiness and constancy.
What is Goldfinch Protocol?
In the Goldfinch protocol, extended credit lines are given to lending businesses. These businesses then utilize these credit lines to withdraw stablecoins from the pool which they trade for fiat to deploy it in the local trade market.
In this way, the protocol enhances the utility of crypto — particularly, its worldwide access to capital.
On the investor side, the crypto holders can make a deposit to the pool to earn yield. Payments are immediately disbursed to the investors as soon as lending businesses return the payments back to the pool.
Goldfinch finance is now providing its services to many borrowers across Mexico, Nigeria and Southeast Asia.
Goldfinch Finance Founder
Mike Sall and Blake West co-founded Goldfinch Finance. Both have a ton of experience in crypto.
Prior to Goldfinch Finance, Mike Sall was performing services as head of Product Analytics at Coinbase while Blake West had been performing services as a senior engineer at Coinbase.
Goldfinch Finance Investors
Goldfinch’s way to deal with financing has been sponsored by significant foundations and industry pioneers.
Prominent Goldfinch Finance investors are
- Kindred ventures
- Coinbase ventures
- IDEO Collab Ventures
- Stratos Technologies
- Variant Fund
- Robot Ventures
Goldfinch Finance More Than $ 1M Uncolleteralized DeFi Loan
Across the entire crypto network, the total amount borrowed was less than $200 million a year ago while for the current year it went above $4 billion in the last month.
Although this growth is significant, still these statistics vastly disparage DeFi’s true potential because of overcollateralized lending.
To borrow $1.00 today on these networks, one must first pledge $1.50 off another asset that they already own. The whole ecosystem is held back by this collateral requirement.
Therefore, only a handful of borrowers like margin traders and crypto holders who do not want to sell their positions can get benefit from these loans. But other people want to borrow because they do not have the money they need.
The key for crypto to break out in the global debt markets is in getting rid of this collateral requirement.
If DeFi is able to make loans without collateral, it will transform access to capital on a massive scale. This is the key to opening crypto lending to a global audience. And this is what we’re doing at GoldFinch.
Is Goldfinch Finance decentralized?
Yes, GoldFinch Finance is a decentralized platform. There is not a single ounce of doubt about that and in addition to being decentralized, it also has the added bonus of being collateral-free.
This is the most important point which enables many people to get involved in the game. GoldFinch enables access to capital in growing markets where crypto can really enhance financial inclusion.
How does Goldfinch Finance work?
The way GoldFinch Finance works is very simple.
- Various Liquidity providers add capital to the pool.
- The lending businesses get extended credit lines by the pool.
- Lending businesses withdraw coins from the pool that are stable and get them converted to fiat.
- End borrowers can get loans from lending businesses off-chain like they used to do.
What makes GoldFinch Finance Unique?
Being a decentralized credit platform offering collateral-free loans makes GoldFinch stand out from the crowd as it allows a lot of people to enter the world of crypto.
Goldfinch Finance Partners
GoldFinch Finance works with some highly reputable partners and will continue to offer more in the near future. There are 2 major partners of GoldFinch
PayJoy, founded in 2015 and headquartered in San Francisco, California with a mission of delivering access to smartphone technology and financial service to billions of individuals around the world.
QuickCheck is a financial institution based in Lagos Nigeria which provides collateral and hassle-free financial services and loans to underserved individuals, micro-entrepreneurs and small businesses in Nigeria.
Goldfinch Finance Alternatives
As Goldfinch is unique and one of its kind, therefore there are no alternatives to GoldFinch currently.
Goldfinch Social Media Handles
Currently, there are five official GoldFinch social media handles as listed on the official website
Takeaway – Goldfinch Finance Review
GoldFinch fills the missing piece by giving crypto loans without collateral which empowers many people to lend crypto around the world.
Hope you enjoyed our Goldfinch Finance review and Goldfinch Protocol review and can take advantage of the fast paced developments in DeFi.