Goldfinch: 78% |
Review Date: March 2nd, 2021
Goldfinch is a protocol building one of the biggest missing pieces of DeFi: loans without collateral. It started from an observation: it’s expensive to be a bank today, and this limits the kinds of lenders that can operate. But there are thousands if not millions who could lend with the right system. Goldfinch is proceeding step by step, as their first phase aims to build a credit fund on crypto making off-chain sources of yield available on DeFi, followed by a second phase focused on decentralizing the network allowing anyone to propose or evaluate loans, and finally a third phase with the objective of allowing even small lenders to take part in the protocol.
Goldfinch is doing things the right way. While the project is still early and in its first phase of development, they already launched and are targeting emerging markets to start, as they already deployed $1 Million in capital to thousands of borrowers across Mexico, Nigeria, and Southern Asia. The team is majorly composed of ex-Coinbase employees, and they are backed by top investors and advisors. There is still a long way to go for the end game they are trying to reach, but they are going in the right way. This potentially could become a hit as it is clearly answering a proved need in lending and the market is huge.