Goldfinch Finance

Goldfinch is an innovative project in the field of crypto-lending. It was founded in 2020 by Mike Sully and Blake West. Why is it innovative? After all, as we know, at the moment there are already several projects related to crypto-lending.
The idea of the project is to make crypto-lending accessible to everyone. This goal is achieved with the help of a combination of several means. First, with the help of the Goldfinch protocol, it will be possible to take out a loan without providing collateral (previously this opportunity was not available). Secondly, now anyone can become a sponsor of the borrower. Previously, this opportunity was provided only to banks and legal entities.
The protocol itself is based on blockchain technology. Initially, the emergence of this technology was associated with the development of decentralized finance. Such technologies are not managed by governments or banks in any way. In fact, thanks to this system, the lending sector will finally depend on people, and not on the regulatory mechanisms of banks.

How will this work be implemented? The process is based on a team of four people: the borrower, the sponsor, the auditor, the liquidity provider (in general, there may be more people, but there are four main roles). The borrower makes a pool (contract). An auditor selected at random checks the borrower. Sponsors evaluate the pool, decide whether to support it or not and then provide the capital of the first risk. Liquidity providers are passive income seekers who provide additional capital. They work on a percentage of the transaction.

In this way, relations are built based on the principle of mutual trust. For the first time in history, we can observe a credit relationship in which both sides of the transaction will be satisfied. Borrowers will finally be able to put forward their loan terms, and sponsors will be almost 100% sure that the debt will be paid. We are finally entering a new era of credit development, and all this is thanks to the Goldfinch project.

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