What Is Goldfinch Protocol (GFI)?

Goldfinch is a decentralized credit protocol that intends to provide cryptocurrency loans without taking any collateral. According to the project’s documentation, the Goldfinch protocol aims to expand access to capital and foster people’s financial inclusion. The project seeks to become a missing piece that unlocks crypto lending for most people worldwide. The Goldfinch project provides loans to companies around the world.

According to the whitepaper of the project, the core limitation of the current crypto lending protocol is that they require over-collateralization with cryptocurrencies. This limitation prevents a large majority of the people who want to borrow cryptocurrency-based loans in the world from participating. The project claims to create a way for borrowers to show creditworthiness based on the collective assessment of other participants rather than based on their holdings of the crypto assets.

According to its website, Goldfinch expands access to capital emerging markets where crypto can truly empower financial inclusion. The project has four participants: borrowers, backers, liquidity providers, and auditors. Borrowers are the participants who seek financing. Backers assess the borrowers’ pool and decide to supply capital or not. Liquidity providers supply the capital to the pool to earn passive income. Lastly, the auditors provide approval to borrowers, which the borrowers require before they can borrow. The auditors provide a human-level check to guard the project against any fraudulent activity.

GFI is the native cryptocurrency of the Goldfinch protocol. The token is a reward token of the project provided to the participants. Auditors are incentivized with the GFI token to vote on the project and use GFI for staking. The backers also get rewarded via GFI token. The Decentralized Autonomous Governance (DAO) manages the governance of the project. The holders of the GFI token have voting rights in the governance of the project. The project works with the Ethereumblockchain. 

History of Goldfinch Protocol (GFI)

The project was launched in 2020. The whitepaper was released in July 2021. The founding team behind the project includes Michael Sall (CEO and President) and Blake West (CTO). The initial token supply at the time of launch of GFI tokens was 114,285,714 coins.