Hello dear friends, today I will tell you about such a wonderful project as Goldfinch. Goldfinch is a decentralized protocol that allows for crypto borrowing without crypto collateral.
You tell me: yes, this is another DEFI project of which there are a lot on the market, I will answer you yes and no. The main difference and a huge advantage of this project is that borrowers can borrow funds without providing cryptocurrency collateral for them. Called the principle of “trust through consensus,” the Goldfinch protocol gives borrowers the ability to demonstrate creditworthiness based on the collective assessment of other participants, rather than based on their cryptoassets. Thus, any bank or credit organization from the REAL sector can receive credit security with cryptocurrency, which opens up truly colossal opportunities for all project participants.
Let’s tell you a little about all the participants in the project.
Borrowers are participants seeking funding and they offer pools of borrowers for sponsors to evaluate. Borrower pools contain the terms that the borrower is looking for, such as the interest rate and repayment schedule.
Sponsors evaluate the pools of borrowers and decide whether to provide capital first with a loss. After sponsors provide capital, borrowers can borrow and repay through a pool of borrowers.
Liquidity providers provide capital to the senior pool to generate passive income. The senior pool uses a leverage model to automatically allocate capital to borrower pools based on how many sponsors are involved. When the senior pool allocates capital, a portion of its share is redistributed among the sponsors. This increases the effective profitability of sponsors, which encourages them to both provide riskier first-loss capital and perform the work of evaluating borrower pools.
Finally, the Auditors vote. to approve borrowers what is needed before they can borrow. Auditors are randomly selected according to protocol and they conduct human-level scrutiny to guard against fraud.
These were the main points describing this project for more information or familiarization with the project, you can read the whitepaper or go to the project website.
Thank you so much for listening. Peace ✌️
Website https://goldfinch.finance/
Discord https://discord.gg/yGx98EAaqj
App https://app.goldfinch.finance
Twitter https://twitter.com/goldfinch_fi
Medium https://medium.com/goldfinch-fi
Telegramm https://t.me/goldfinch_finance
