Goldfinch Update #44
🗣 Join our Monthly Founders AMA with Guests from Legal and Eng to chat latest updates, Governance Proposals and Risk Management
🎙️Highlights of the Week
AMA taking place tomorrow in Discord 9AM PT- this is one you won’t want to miss!
Several new Governance proposals - from GIP-43 Reevaluating LP and Backer Rewards, GIP-44 removing withdrawal cancellation requests and GIP-45 new legal templates - read more below
We’re looking for on-chain borrowers as part of a new pilot
Features in Forbes and Blockworks Research
As a reminder, Goldfinch Membership was updated to support the harvesting of its $26M assets held! $162k of rewards have been distributed to members, and now participants can withdraw underlying GFI rewards and interest without exiting the vault. Join over 200 members to start earning Rewards today!
Community coverage and happy customers
We enjoyed meeting many of you at ETHDenver!
👀 From the Beak
AMA with Blake, Chris and Will to share roadmap updates, discuss risk management and latest Governance proposal
ICYMI - Mike, Warbler Labs cofounder and CEO, responded directly to the Community in Discord this past weekend, recognizing the stressful time with banks collapsing and uncertainty around USDC. We reiterate that Warbler Labs does not bank with Silicon Valley Bank (nor Silvergate), so we are not directly impacted by SVB news. We have reached out to all borrowers about their situation, and our understanding so far is that they are not affected either.
Given the quickly changing external landscape, we are inviting several other team members to our regular Founders AMA this Friday. We’re pleased to host Christopher Robins, General Counsel and Will Johnston, Sr Software Engineer to answer all of your questions. The community has passed several Governance proposals you may have missed and we will take some time on Friday to talk through those. We hope to see you there!
🏛️Make sure you read our Governance section below describing our most recent proposals. Link to all recent Governance posts
Access Credit On Goldfinch By Leveraging On-Chain Cashflows
Goldfinch protocol is exploring lending to real-world (i.e. non-crypto trading) businesses with existing cashflows on-chain or with the willingness to integrate their cashflows on-chain. If you want to be on the cutting edge, reach out here.
With on-chain cashflows, we have the ability to create innovative new lending products uniquely enabled by crypto. We believe transparent, easily verifiable on-chain cashflows can level the playing field of raising debt between big and small companies, and we want to be at the forefront of making that happen.
Read the full article on Medium
📰 Goldfinch in the Media
Forbes: Tokenized Real-World Assets Are Bringing New Yield Opportunities To DeFi
In this overview, the author discusses outlooks and decision points including how DeFi must offer higher yields than traditional investments to remain competitive and attract capital. When evaluating yield-generating opportunities, investors should look at the track record of existing DeFi applications that leverage real-world assets. Have they suffered defaults? What is the underwriting and due diligence process and how do they manage risk? At Goldfinch, we’re happy to share ongoing due diligence improvements such as our Credit Memos and regularly report on loss rate (currently at 0%).
Goldfinch Summary from Blockworks Research
Source: Twitter via @blockworksres and @purplepill3m
We enjoyed meeting many of you at ETHDenver!
(Po On, Goldfinch, Amir, Celo, Asad, Centrifuge, Taylor, Goldfinch)
Members of our team, Taylor and Po On, attended ETHDenver to meet with partners, get the latest insights and educate the masses on Real World Assets. Taylor spoke on a panel on the main stage hosted by Circle “Powering Real-World Assets On-Chain with USDC”. The panel included members from Huma Finance and Flow Carbon to explore the economic benefits of bringing RWA on-chain, how pairing RWA with USDC can unleash the next wave of utility for consumers and businesses, and the challenges ahead for developers with building compliant, mainstream products.
Spot the Goldfinch!
👂From the Community: What we’re Hearing
Within our Discord - Appreciate when Community Members help one another out!
james007 huge shout out to my friend @mcegor13 for answering all the question in a really simple manner and for comforting me when i was panicking.
Via DMs - Glad we can provide a top notch Customer Experience!
Over on Twitter - Goldfinch making top lists and featured on independent analyses
Monthly Town Hall March 17th 9AM PT / 12PM ET: Founders AMA, plus special guests from the Warbler Labs team, Christopher Robins, General Counsel and Will Johnston, Sr Software Engineer, to help answer questions regarding risk management and GIP-43 implementation. Event link to RSVP. Can’t attend? Ask your questions in advance in our Discord channel and stay tuned for notes will be shared here
We always have events in the works, from education to early alpha, so make sure to stay tuned, by following @goldfinch_fi on Twitter, or in the Goldfinch Discord.
Any $GFI holder can make a Goldfinch Improvement Proposal (GIP) via the process here. Voting costs nothing and happens through Snapshot.
Approved proposals awaiting Council:
GIP-43: Reevaluate LP and Backer Rewards
Summary: At the current rate of emissions, the GFI rewards for LPs (the StakingRewards contract) will run out at the end of June 2023 and Backer Rewards will run out in mid-April 2023. Those dates are significantly sooner than had originally been anticipated. Also, given the low liquidity environment, which prevents people from easily exiting the position after those dates, we are proposing a way to gracefully extend the rewards, and split the remaining tokens between Backers and LPs.
To that end, we present two options below on how to achieve these goals, using principles of relative risk and liquidity to guide the proposal.
Option 1: No change to the StakingRewards or Backer Rewards (based on the current state, rewards for Backers would run out in mid-April and rewards for LPs would run out at the end of June)
Option 2: Split remaining rewards 60/40 between Backers and LPs.
Pros: By splitting the remaining rewards, we are ensuring that both Backers and LPs are continuing to receive rewards throughout the life of their loan, which we think better fulfills the spirit of what the original allocations were meant to do. This approach also ensures a smooth decrease over time, which creates more stability for the protocol. Lastly, if unitranche deals continue (like the new Cauris deal last December), then this means the tokens can be used for new growth of the protocol, which is always good.
Cons: This approach requires some minimal smart contract changes, which brings risk. One could argue it is less fair to LPs, but based on the principles laid out above, we think it’s a reasonable compromise.
GIP-43 passed Snapshot voting with 84.63% of GFI in favor of Option 2.
Proposals live in Discourse:
GIP-44: Temporarily set the withdraw cancellation request fee to 0%
Summary: Goldfinch should allow users to cancel their FIDU withdrawal request with 0% fees for a short 28 day window to give users the opportunity to reconsider their withdrawal.
✨Shoutout to our star community member Nanojohn for putting this together and gathering feedback in our #proposals-idea channel in Discord!
GIP-45: Templatize legal agreements for deals
Summary: Pay up to 70,200 USDC from the Goldfinch treasury to Reed Smith for a loan agreement template that can be used by borrowers for Goldfinch deals. The template aims to adapt traditional debt mechanics for on-chain mechanisms, standardize deal terms and reduce deal execution cost and timelines.
We welcome discussion and ideas for new Governance Improvement Proposals - head over to our #proposals-idea channel in Discord
💼 We’re hiring for a Senior Product Designer. Check out our website for a full list of openings
We’re looking for a designer who is passionate about our mission to expand access to capital by creating a single global credit marketplace. We take pride in building beautiful products and as our product designer you will set a vision for how we design these experiences for our users. Please reach out to us if you are interested and help us spread the word through your network. Read more and apply here
🎱 Senior Pool / Borrower Pool Updates
Current Senior Pool APY: 20.26% combined (7.78% USDC + 12.48% GFI)**
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.
Total loss rate in the last 30 days: 0
Repayments in the last 30 days: ~$537K USD ($536,787.91)
Protocol Revenue in the last 30 days: ~$68K USD ($67,538.70)
Total Active Loans: ~$101M USD ($101,344,767.18)
See more data on Dune
📚 Ready to start investing? Read the step-by-step guide.
💰 Considering providing capital to the protocol, but would prefer to chat with a human first? Complete the Goldfinch Capital Provider Interest Form here.
🛠️ Find job openings for a variety of roles building for Goldfinch at Warbler Labs here.
📗 Read Borrower Profiles here, and view the protocol’s pipeline of upcoming Borrower Pools here.
🐦 Follow us on Twitter, join our Discord, and see the latest governance activity on Discourse.
**Disclaimer: All APYs on Goldfinch are dynamic, and these APYs are a snapshot from 3.16.2023. The Senior Pool APY changes based on the amount of capital in, and the utilization rate of, the Senior Pool.
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