Description
Goldfinch is a decentralized credit protocol that aims to expand access to capital in emerging markets, where traditional financial services are often limited. Unlike conventional DeFi platforms that require collateral, Goldfinch uses a unique consensus mechanism to assess creditworthiness, allowing borrowers to access loans without collateral. This mechanism relies on the collective assessment of the "Backers" within the ecosystem, who provide the initial capital for the loans and assess the credit risk. Lenders can participate by supplying capital to the liquidity pool, earning returns as the loans are repaid. The protocol is designed to support a wide range of borrowers, from individuals to businesses, and to enable a variety of lending activities, from working capital to project financing. The Goldfinch protocol operates on the Ethereum blockchain, leveraging smart contracts for loan issuance, risk assessment, and interest and principal repayments, ensuring transparency and security for all participants. Goldfinch also features a governance token, GFI, which allows holders to participate in the governance of the protocol, influencing decisions such as changes to the protoco...
Goldfinch is a decentralized credit protocol that aims to expand access to capital in emerging markets, where traditional financial services are often limited. Unlike conventional DeFi platforms that require collateral, Goldfinch uses a unique consensus mechanism to assess creditworthiness, allowing borrowers to access loans without collateral. This mechanism relies on the collective assessment of the "Backers" within the ecosystem, who provide the initial capital for the loans and assess the credit risk. Lenders can participate by supplying capital to the liquidity pool, earning returns as the loans are repaid. The protocol is designed to support a wide range of borrowers, from individuals to businesses, and to enable a variety of lending activities, from working capital to project financing. The Goldfinch protocol operates on the Ethereum blockchain, leveraging smart contracts for loan issuance, risk assessment, and interest and principal repayments, ensuring transparency and security for all participants. Goldfinch also features a governance token, GFI, which allows holders to participate in the governance of the protocol, influencing decisions such as changes to the protoco...
