Goldfinch. Is it a breakthrough in Defi?

Goldfinch is a decentralized protocol that allows you to perform cryptocurrency without a crypto-collateral.
The main limitation of existing cryptocurrency protocols is that they require
redundant collateral through cryptography, which prevents the vast majority of borrowers from participating
the world.

Let’s think together why unsecured loans can be of interest to millions of potential borrowers? These loans are useful only for a subset of borrowers — primarily for margin traders and cryptocurrency holders who do not want to sell their positions. But for everyone else in the world, the reason they want to borrow is in the first place because they don’t yet have the necessary funds.
Removing this collateral requirement is key for cryptocurrency to enter the world’s debt markets. DeFi has a tremendous opportunity to change access to capital, but this will only be possible if it can provide unsecured loans.

The Goldfinch protocol consists of: Borrowers, Sponsors, Liquidity
Providers and Auditors.
Borrowers are looking for financing, and they offer Pools of Borrowers for evaluation by Sponsors.
Sponsors evaluate the pools of borrowers and decide on the provision of capital.
Liquidity providers provide capital to the Senior Pool in order to receive passive returns.
Auditors vote for the approval of Borrowers, which is necessary for them to be able to take out loans. They also provide verification to protect against fraudulent actions.

The platform was launched in December 2020 and has already raised over $ 1 million in capital for thousands of borrowers in many countries around the world.
Well-known fintech companies such as PayJoy, QuickCheck, Aspire Money, Almavest and others are already partnering with Goldfinch. All of them have been demonstrating good results in the field of lending in various segments for several years and now strive to grow with the help of cryptocurrency.

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