What is Goldfinch?
Today I would like to tell you about a completely new, revolutionary project in the field of finance, or rather decentralized finance - Goldfinch! The project appeared recently and has already managed to make a lot of noise among Defi lovers, the fact is that the idea of Goldfinch is so simple and at the same time revolutionary that it can easily turn the minds of millions of people about the concepts of investing and lending. Just imagine a platform on which borrowers and backers could interact with each other absolutely freely, safely and in a completely new and convenient way for everyone, such a platform is Goldfinch.
Decentralization achieved through the use of blockchain technology provides the platform with transparency and security, at the same time, absolute ease of use without being tied to the user's location. Goldfinch has many advantages over banks, removing all bureaucratic barriers, huge commissions and being tied to the location of the bank itself within the country. In the future, backers will have access to projects from all over the world for investment, because due to the legal aspects of some countries of borrowers, potentially attractive and useful projects may simply not receive proper funding, and will end without starting.
The same problem arises before the backers themselves, due to the strict regulation of some countries and banks, the investment market is reduced to conservative and limited instruments, while thousands of attractive and technological projects simply leave the market due to a lack of investment. More and more young and ambitious investors appear who are faced with limited markets and investment instruments, Goldfinch aims to change this situation and unite both parties on one platform for productive cooperation.
Let's take a quick look at the roles that are present on the Goldfinch platform to make it clearer how it all works:
1. Borrowers (borrowers) are actually those people who need to raise funds, these are large and small companies or projects that request funds for further development, fulfilling these pre-agreed conditions.
2. Backers - These are people who lend their own funds to borrowers with a certain rate and conditions. Backers can choose among borrowers on the platform, contact them and request additional documents or clarify conditions in order to make sure that the loan is potentially justified and beneficial for both parties. It is the backers who make up the so-called first-loss capital, providing it for the formation of the junior tranche, it is because of this risk that the backers' interest rate is the highest.
3. Liquidity providers - these are participants who form a senior pool, later from which a senior tranche is formed for already verified borrowers, due to the fact that the risk is lower, the interest rate for liquidity providers is lower.
4. Auditors - platform participants who assess the well-being of borrowers in order to weed out unreliable borrowers, to improve the quality of projects and the safety of all platform participants.The scheme is quite simple, but it clearly shows the algorithm of the protocol and its participants. The idea of the project is very relevant, Goldfinch is trying real problems of investors by providing an elegant and reliable solution for this, the project is very interesting, I will leave all the necessary documents and links to the project below, subscribe to the social networks of the Goldfinch project so as not to miss anything, I will continue to introduce you to with this project