Goldfinch: Crypto Loans Without Collateral – Hot Upcoming ICO

What is Goldfinch Finance?

Goldfinch is a decentralized credit platform offering crypto loans without the need for collateral. As opposed to existing crypto lending platforms such as Nexo, or BlockFi, this makes it possible for users to acquire lending services without offering up their existing crypto holdings as collateral. This may be the missing piece to the puzzle that finally unlocks crypto lending for the mainstream.

Last month, the total value borrowed across crypto lending networks surpassed $4B, up from less than $200M one year prior. And yet, this growth fails to match the true potential of DeFi. That’s because, according to the folks at Goldfinch, “all of this lending is overcollateralized.” For every $1 someone borrows on existing lending platforms today, they must hand over $1.50 worth of another asset they already own–such as Ethereum or Bitcoin.

According to Goldfinch, these collateral requirements hold the system back. For one, these loans are only useful to a small segment of total borrowers — namely margin traders and crypto hodlers. But for the majority, “the reason they want to borrow in the first place is they don’t already have the money they need.” True enough!

Thus, removing this collateral requirement is perhaps the key to crypto breaking out into global debt markets. An argument can be made that DeFi has a chance to transform our access to capital, but only once we can offer loans without collateral. It could be that what Goldfinch is building could be the future of DeFi markets for the world.

“Unlocking the untapped underwriters”

– Goldfinch.finance

Issuing loans without collateral is merely step one. Step two is utilizing a decentralized network anyone to participate in. In other words, not just banks can offer loans now, and this access to lenders could usher in a whole new level of lending activity that otherwise could not get funded today.

In the realm of traditional finance, it’s expensive for banks to underwrite because they can’t know, verify, and trust their borrowers. This sets a threshold for the kinds of lenders that can operate, and it cuts out the long tail of what’s possible.

But, Goldfinch asks, what if the community could power lending services?

Imagine removing the overhead of banks to offer loan opportunities ourselves?! It is a paradigm shift… accessing vast untapped sources underwriting potential from millions who can “identify and assess new sources of credit.” Simply put, by decentralizing the underwriting process, DeFi can deliver loans in ways traditional banks simply cannot.

About the Goldfinch Finance Team:

The Goldfinch team is led by project lead Andrew Huelsenbeck of Branch International, and cofounder Blake West, former COO of Coinbase. Their investors include the titan of blockchain finance Andreeson Horowitz, as well as other major players such as Coinbase Ventures.

GoldFinch Finance Tokenomics: How does it work?

Token

Goldfinch will launch as an ERC20 Utility token, under the ticker FIDU.

Protocol

Basically, the Goldfinch protocol works by extending credit lines to capable lending businesses. These businesses take the credit lines to deploy stablecoins from the pool, and then they exchange stablecoins for fiat and loan it out in their local markets. Hence the protocol provides the utility of crypto — specifically, its global access to capital — while leaving the lending and servicing to businesses who are equipped to manage it.

For investors, crypto holders can deposit their assets into the pool to earn yields. As the lending businesses make interest payments back to the protocol’s liquidity pool, the APY’s are immediately disbursed to investors.

How to participate in Goldfinch ICO:

Token sale has been announced as “Soon.” There is extremely high interest rating on ICO Drops, and we will keep you updated on any new information regarding how to get involved in the private sale, and early launch.