An Analysis and Outlook for the Goldfinch (Deep Research)

8 нояб.

Goldfinch is a decentralized lending protocol that seeks to expand access to capital by creating a global credit marketplace. Goldfinch aims to bring those who have traditionally been left out of financial services, especially in developing countries, into the credit system. This is accomplished through the creation of a single global credit marketplace where borrowers from startups in Lagos to large institutions in New York can access credit from the same capital markets.

RWA

Goldfinch plays a significant role in the real world assets (RWA) space in the context of decentralized finance (DeFi) by providing a unique approach to lending. Unlike many DeFi protocols that require cryptocurrency collateral, Goldfinch specializes in providing unsecured loans. This is accomplished through partnerships with real borrowers and organizations that evaluate borrowers' creditworthiness and RWAs, allowing for greater access to credit beyond the cryptocurrency sphere.



Goldfinch promotes the integration of traditional finance (TradFi) with DeFi through tokenization of real assets. This not only makes investing in DeFi more accessible and understandable for traditional investors, but also expands opportunities to generate income through real economic activity.

The protocol is based on TranchedPool and SeniorPool contracts. TranchedPool divides capital into junior and senior, where junior capital carries the most risk and senior capital is provided through SeniorPool. The CreditLine contract manages loan terms and repayments. Lenders receive ERC721 tokens confirming their right to repay capital and interest. The FIDU token is used to
representing shares in SeniorPool, and GFI is used to manage the protocol. UniqueIdentity and Go contracts define user access to protocol features, and Zapper facilitates the movement of funds between pools. GFI tokens are distributed through eirdrops, staking, and rewards for participants.



Team



Mike Sall and Blake West are co-founders of Goldfinch. Their involvement in the project aims to address financial imbalance by providing access to capital to low-income communities around the world through DeFi's decentralized lending protocol. Their initiative, Goldfinch, aims to serve over 2 million people in 20 countries by focusing on secured loans that are backed and fully secured off-chain. They talk a lot about their mission, discussing growth, improving the user experience at DeFi, and how they believe cryptocurrencies are changing the global economy. Their approach involves extensive user research, looking at various groups including financial giants like Blackrock and Apollo to understand and improve the user experience in the Web3 space.
Mark Roszak is listed as an advisor to Goldfinch, a DeFi project focused on providing access to capital to underserved communities. Given his experience, this role likely includes providing strategic advice on compliance, legal frameworks, and possibly business development.

Fundraising



Undisclosed Round (Feb. 2, 2021)
Raised: 1.00M
Investors:
Coinbase Ventures: Venture arm of Coinbase, one of the largest cryptocurrency exchanges, focusing on early-stage startups in blockchain and cryptocurrencies.
IDEO CoLab Ventures: Known for investing in companies using technology to solve social and environmental problems.
Variant: A venture capital firm focusing on crypto and blockchain technologies.
Stratos Technologies: A blockchain infrastructure company.
Robert Leshner: Founder of Compound Finance, bringing significant experience to DeFi.
Kindred Ventures: Focuses on early stage startups in the technology sector.

This round was key to establishing an initial base, likely used to develop core technology and initial market testing.

Seed Round (June 16, 2021) Raised: 11.00M
Investors:
Andreessen Horowitz (a16z): Lead investor in this round, known for his significant investments in blockchain and technology startups.
Balaji Srinivasan: Former CTO of Coinbase, a well-known figure in the crypto space.
Divergence Ventures: Venture capital focused on crypto and blockchain.
SV Angel: An early stage investment fund.
a_capital: Venture capital specializing in crypto and blockchain.
Ryan Selkis: Founder of Messari, a cryptocurrency market intelligence platform.

This Seed round would be key to scaling operations, expanding the team, and possibly starting to deploy the protocol in the real world.

Series A (Jan. 6, 2022) Raised: 25.00M Investors:
Andreessen Horowitz (a16z): Leading round again, showing strong support.
OrangeDAO: Decentralized venture fund.
Kingsway Capital: Venture capital with interests in blockchain. Blocktower Capital: Hedge fund and investment company,
focused on cryptocurrency.
Stratos Technologies: A returning investor indicating confidence in the direction of the project.

A Series A round usually signifies a project's willingness to significantly expand its operations, improve its technology, and possibly enter new markets or improve its current market presence.

Key Points:
Repeated investments from companies like a16z and Stratos Technologies indicate a strong belief in Goldfinch's mission and technology.
The mix of traditional venture capital, crypto-focused funds, and individual investors with significant influence in the DeFi space shows the broad appeal and potential of Goldfinch.
Each round seems to have been used strategically to build, scale and expand the project, in line with typical startup growth phases but tailored to the unique needs of the DeFi protocol.

Tokenomics

Initial offering: 114,285,714 GFI tokens. There is currently no inflation, but it is believed that the introduction of moderate
inflation in three years could benefit the protocol by rewarding future participants. This will ultimately be decided by the community.

Token distribution



Liquidity Providers (16.2%):
Early Liquidity Provider Program (4.2%): Early Liquidity Provider tokens for early capital contributors, with unlocking for 6 months starting January 11, 2022, and a 12-month transfer restriction for U.S. participants.
Retroactive Liquidity Provider Distribution (4.0%): For 5,157 liquidity providers as of the December 14 snapshot, excluding the early program, with various unlocking terms ranging from immediate to 12 months depending on the contribution.
Senior Pool Liquidity Mining (8.0%): For ongoing liquidity mining, details in the Liquidity Mining section.
Backers (8.0%):
Flight Academy (3.0%): For 10,182 participants outside the US, with unlock schedules ranging from immediate to 24 months.
Backer Pool Liquidity Mining (2.0%): Tokens are distributed as interest is paid, with retroactive distribution for existing backers.
Backer Staking (3.0%): For future staking by backers, not yet implemented but expected to be offered soon.
Auditors (3.0%): Reserved for future Auditors systems, not yet implemented.
Borrowers (3.0%): Reserved for possible future distribution to borrowers.
Contributors (0.65%): For those who have made significant contributions to the community, following a similar unlock schedule as Flight Academy.
Community Treasury (14.8%): For community decision-making such as grants, adjusting minutes, and covering loan defaults. Early and Future Team (28.4%): For initial team, advisors, and contractors, with various unlocking schedules.
Warbler Labs (4.4 %): For a separate Goldfinch-based organization, with a 3-year unlock schedule.
Early Supporters (21.6%): For 60+ early investors who contributed $37 million, with a 3-year unlock schedule, initial lockup, and transfer restrictions.



Airdrop

In January 2022, Goldfinch held its first major airdrop of GFI tokens. This airdrop was aimed at rewarding early adopters who actively supported and utilized the platform prior to the launch of the GFI token. Participants who contributed to the ecosystem received GFI tokens based on their activity and contribution. Criteria for participation in this airdrop included:
Conducting transactions on the platform. Participating in lending or investing.
Active participation in the community, for example through discussions and suggestions for improving the platform.
In total, about 15% of the total GFI offering was distributed to the participants of this airdrop. This helped to create an initial base of token holders interested in further development of the project.
During 2022, Goldfinch also conducted several airdrops aimed at attracting new users to the platform. These airdrops were aimed at incentivizing registration, platform usage, and lending participation. Participants had to complete certain actions such as:
Registering and creating an account on the platform.
Conducting their first transaction or investing in lending pools.
Participating in GFI token staking.
These airdrops helped to expand the user base and increase the number of active participants on the platform.

Market Data

Active Loans in the context of Goldfinch refer to loans that were issued by the protocol and are currently outstanding, meaning they have not been fully repaid or charged off.



Active loans are part of what Goldfinch calls borrower pools. Each pool represents the loan terms, interest rate and repayment schedule for a single borrower. Investors can contribute capital to these pools, effectively becoming lenders. These loans are designed to make a tangible impact by financing businesses that may not have access to traditional banking services or capital markets, especially in regions of low financial accessibility. Regarding TVL, the value continues to hold in the neighborhood of $70-80 million. This is the amount that investors and platform members have put into loan pools, including both senior and junior tranches, to lend to real businesses, especially in emerging markets. This figure suggests that Goldfinch has significant support from the DeFi community, enough to sustain lending operations. However, to fully understand it, one should compare this TVL with other DeFi protocols, consider its dynamics over time, and analyze how this figure relates to loan volume, interest rates, and defaults.



Such TVL may attract additional attention to the platform, both from potential investors and analysts, as it is an indicator not only of financial stability, but also of the potential for further growth and development.

Blockchain

According to our blockchain research we were able to determine that the project's investors still have not sold their assets and received their tokens from cryptocurrency exchange Coinbase.



Angel investors also received their tokens and continue to hold them.
Over the past week, a major player has become active and continues to buy coins at the market price. He has a total of about 10 wallets with a growing number of GFI coins. All wallets look like this.



To summarize from a blockchain perspective, Goldfinch has a good and sensible distribution of tokens among the big players. They will be the key price drivers, so you should pay attention to their transactions.

Conclusion

Goldfinch is focused on the RWA sector, which is expected to show strong growth during the current bull market. With DeFi rapidly evolving and gaining more attention, Goldfinch is at the forefront, offering a unique platform to bridge traditional finance and blockchain technology. Innovative model
Goldfinch, based on tokenizing real assets and integrating them into the DeFi ecosystem, opens new horizons for investors and borrowers. The platform not only provides access to credit, but also creates a bridge between traditional and decentralized finance, allowing investors to participate in the growth of the RWA sector through a transparent and automated smart contract system. In the current bullrun, where the RWA sector is starting to play an increasingly important role, Goldfinch is well positioned to become a key player, providing market participants with unique opportunities to grow and diversify their portfolios. The Protocol is ready to take a leading role in shaping the new financial landscape, offering solutions that not only meet current trends, but also pave the way for the future development of the global financial system.

Best wishes, Horban Brothers!