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A brief description of the Goldfinch Protocol and why it matters. These docs are community driven. |
Goldfinch is a decentralized credit protocol with a mission to expand access to capital and foster financial inclusion. The protocol makes crypto loans without crypto collateral. This is the missing piece that finally unlocks crypto lending for most people in the world. The Goldfinch community makes loans to companies around the world, starting with emerging markets.
By incorporating the principle of trust through consensus, the Goldfinch protocol creates a way for borrowers to show creditworthiness based on the collective assessment of other participants rather than based on their crypto assets. The protocol can then use this collective assessment as a signal for automatically allocating capital. By removing the need for crypto collateral and providing a means for passive yield, the protocol dramatically expands both the potential borrowers who can access crypto and the potential capital providers who can gain exposure.
From the beginning, Goldfinch wanted to build for the borrowers who can benefit most and where crypto can have the greatest impact. This meant starting with lending businesses in emerging markets. They have the most to gain (and the highest demand) because the inefficiencies of traditional finance limit the capital that can flow into these markets. It’s also where crypto truly shines with its liquidity and international reach.
The Protocol is currently used by many Borrowers around the world, including PayJoy in Mexico, QuickCheck in Nigeria, Divibank in LatAm, Greenway through Almavest in India, and Cauris in Africa, Asia, and Latin America. You can see more Borrower Pools here.
Read on for a more detailed explanation of the Protocol.