Goldfinch (GFI)

What is Goldfinch?

Goldfinch is a borrowing protocol based on the Ethereum network, consisting of 4 core components:

• Borower: Lenders, looking for capital sources and opening "Borower Pools" for Backers to participate. The Borrower Pool will include the parameters that the Borrower sets for lending such as interest rate and loan term criteria.
• Backer: Join the Borrower Pool and decide which pools to provide the first capital into. After the Backers provide capital, Borrower will be able to start borrowing and paying interest rates in Borrower Pool.
• Liquidity Provider: A person who provides capital to Senior Pools to collect a part of passive profits. Senior Pools will use the Leverage Model to automatically allocate capital to Borrower Pools based on the number of Backers participating in the pool.
• Auditor: is the component that censors the credibility and trust of the -Borower. Auditors will be randomly selected by the protocol and will be strictly vetted before becoming Auditors.

Highlights of Goldfinch

For conventional borrowing protocols, in order for users to participate in borrowing crypto assets, an overcollateralization is required. This will help select borrowers with a high level of loan repayment ability.

However, Goldfinch's operating mechanism is based on trust through consensus, which means that users need to prove their credibility based on an assessment of the level of commitment for transactions. previous translation.

Goldfinch will use this assessment as a toolkit to automatically allocate funds to borrowers. By eliminating collateral and providing a means of generating passive income, Goldfinch is rapidly expanding in both its borrower base and tapping into the potential of Liquidity Providers

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