Goldfinch is a decentralised credit protocol launched in 2021 on the Ethereum blockchain, designed to enable crypto borrowing without the need for crypto collateral. The platform focuses on expanding access to capital, particularly for real-world businesses in emerging markets.
Goldfinch supports uncollateralised lending, allowing borrowers to secure loans based on off-chain assets and income rather than crypto collateral. It uses a unique trust through consensus mechanism, where collective assessments determine borrower creditworthiness.
The protocol operates a dual pool system:
Borrower Pools, where borrowers propose specific loan opportunities, and
Senior Pools, which automatically allocates funds across all Borrower Pools for diversified risk.
Built on Ethereum, Goldfinch is EVM-compatible, enabling integration with other DeFi protocols.
The GFI token powers the Goldfinch ecosystem. It enables governance, allowing holders to vote on protocol updates and parameter changes. Users can stake GFI to serve in roles like Auditors or to enhance Backer leverage. The token also incentivises participants, such as liquidity providers and backe