Goldfinch Update #21
Over 1 million accessing off-chain financing, enlightening threads, governance discussions, and upcoming events not to miss
🎙️Highlights of the week
Over one million people and businesses have been reached with Goldfinch’s USDC capital via the protocol’s Borrowers. Read the announcement.
There are two live governance proposals open for community discussion. Contribute to the discussion in the governance forum.
AlloyX launched an integration for their protocol, which allows Goldfinch Backers to leverage their Pool positions on AlloyX to access liquidity. Get the details in the announcement.
Goldfinch and Warbler Labs Co-Founders Blake West and Mike Sall were featured on the More Than Profit podcast. Listen here.
👀 From the Beak
Congratulations to the Goldfinch community on announcing that the USDC capital accessed on Goldfinch has reached over one million people and businesses as estimated by the protocol’s Borrowers—a sign that bringing off-chain investment to DeFi is showing its huge potential. Learn more in the announcement, and view the Dune dashboard to see all of the data on the off-chain people and businesses achieving growth via Goldfinch’s funding.
DeFi as a catalyst
Goldfinch Co-Founders Blake West, CTO of Warbler Labs, and Mike Sall, CEO of Warbler Labs, joined Access Ventures CIO TJ Abood for a special episode of the More Than Profit podcast to discuss what DeFi is, crypto’s ability to transform financial models, and the false label Goldfinch has received as “under collateralized lending.” Listen to the episode here.
Ecosystem launches integration
AlloyX, a liquid staking protocol for capital markets, launched an integration to Goldfinch that allows Backers to use AlloyX to exit and enter Borrower Pool positions on their protocol—accepting deposits of junior position NFTs from existing Backers, and opening their protocol for new investors to participate via AlloyX with pooled funds.
Community Manager RP led a well-attended Discord Town Hall with the AlloyX team covering the integration’s specifics, and how AlloyX views it supporting the Goldfinch community. Read AlloyX’s announcement of the integration, or AlloyX’s coverage in Yahoo Finance here.
📰 Goldfinch in the Media
"As DeFi continues to evolve, I believe more and more innovation in the lending space will be redirected from speculative leveraging towards productive lending." — Genping Liu, The Business Times
Genping Liu, a partner at Vertex Ventures South-east Asia and India, wrote an op-ed for The Business Times featuring Goldfinch amongst the reasons he believes productive real-world lending will be the anchor that can hold DeFi strong throughout the bear market. The op-ed covers the current contagion within DeFi, explores whether real world lending yields are attractive for DeFi, and more. Read it here.
Jack and the thesis
Why would an investor ever pay below 'risk free' cash rate for USD? This is the question asked by Jack Melnick, Head of Research for The Tie, in a Twitter thread covering his fundamental crypto thesis on high yield credit spreads, the 10-year MM treasury rate, on-chain USD yields, how it all relates to investors in emerging markets, and why platforms like Goldfinch can provide a solution by bringing off-chain yields on-chain. Check out the thread and share your thoughts.
Polygon DeFi Researcher Jack posted a thread of his major takeaways from last week’s Blockworks Research Twitter Spaces panel on the future of on-chain credit protocols, featuring Goldfinch, Maple, and TrueFi. If you weren’t able to catch the panel you can read Jack’s insights here, or catch up on the recording here.
The new age of DeFi
Know someone who is still learning about how Goldfinch works? Research group Probably Nothing published an in-depth overview of Goldfinch, including the protocol’s thesis, mechanics, participants, resources, and more. Read the article here to learn why contributor @0xkomada thinks that Goldfinch represents “one of the key ways to attaining proper adoption and sustainable yields.”
FujiDAO x Goldfinch: FujiDAO Twitter Spaces covering Goldfinch
Tuesday June 17th at 17:00 UTC on FujiDAO’s Twitter
Join Goldfinch’s Community Manager RP and FujiDAO’s Community and Marketing lead Artem for the first edition of the DeFi borrowing aggregator’s new bear market educational series. The talk will cover Goldfinch, how it works, how it brings TradFi to DeFi, and more.
Join the Twitter Space here.
🗳️ Governance Proposals & Protocol Updates
Community proposals for discussion:
Summary: For the Goldfinch community to allocate 4,000 USDC from the Goldfinch Treasury to run a pilot of the Credit Analysis Grant, and compensate community members to write two Credit Analysis Memos for each of the next two Borrower Pools.
Motivation: Kicking off the Credit Analysis Grant program will help synthesize the data available to the community to evaluate borrower pools, further the decentralization of the protocol, and strengthen the engagement of the Goldfinch community by compensating members for their contributions.
View the proposal here to join the conversation.
Summary: In order to give Backers an opportunity to exit their positions in Borrower Pools prior to the end of the lock-up period, this proposes the creation of a secondary marketplace that enables Backers to sell their Borrower Pool positions.
Motivation: The lock-up period for Backers who lend to Borrower Pools is 2-3+ years. This long-term capital commitment is reducing the number of people who are willing to contribute to Borrower Pools. Since the Backer positions in Borrower Pools are represented as NFTs, there are many existing platforms that could facilitate a marketplace for these Backer positions.
View the proposal here to join the conversation.
🎱 Senior Pool / Borrower Pool Updates
Get real-time updates when new Backer Pools launch, and news on upcoming Borrowers, here.
The Senior Pool is automatically diversified across different Borrower Pools. Backers can invest in specific Borrower Pools, and earn an additional share of rewards for their role doing so. Pools normally close for Backer deposits within a week. Learn more here.
Defaults in the last 30 days: 0
Repayments in the last 30 days: ~$3.7M USD ($3,746,339.01)
Protocol Revenue in the last 30 days: ~$111K USD ($111,620.74)
Total Active Loans: ~$99M USD ($99,219,761.52)
See more data on Dune
Where can I learn more about how Goldfinch’s code and smart contracts function?
All of the technical documentation for Goldfinch lives in the Goldfinch Developer Docs at https://dev.goldfinch.finance/.
You can explore the protocol’s smart contracts, check out the architecture diagram, learn how the smart contracts work together to create the protocol’s mechanics, or understand the protocol’s approach to security features like pauseability, flashloans, mitigating front-running, and more.
All of Goldfinch’s code is open source in the protocol’s Github. If you have questions about the protocol’s technical implementation, you can always ask in the #dev channel of the Goldfinch Community Discord.
Don’t forget—Goldfinch has a $500,000 Immunefi Bug Bounty for finding bugs in the smart contracts or app that prevent loss of funds, incorrect or unintended money transfer behavior, inability to call the smart contract, and more topics outlined in the bounty.
🧠 More Info
📚 Want to get started? Read our simple protocol guide.
☕ Book a slot to chat with Warbler Labs team members here.
💰 Want to deposit capital in the protocol, but would rather chat with a human face first? Fill our form here and our team will get back to you.
**Disclaimer: All APYs on Goldfinch are dynamic, and these APYs are a snapshot from 07.15.2022. The Senior Pool APY changes based on the amount of capital in, and the utilization rate of, the Senior Pool