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Hi everyone! My name is Alex, I am from Russia and this is the main reason of my accent and pronunciation mistakes.

Today, as a member of the Flight Academy program, I made a small presentation and want to tell you about the Goldfinch Finance Protocol and how Goldfinch is different from other DeFi lending

First of all, we should know that DeFi is short for “decentralized finance” and this is an umbrella term for a variety of financial applications in cryptocurrency or blockchain

The DeFi sector has experienced great growth in the past two years. Primarily because it opens up a large number of financial opportunities for everyone. And we can see on the chart which I took from the DefiPulse, that total value locked in defi grew from $ 5 to $ 100 billion. Almost 20 x in 2 years, fantastic growth

Landing protocols are one of the most important parts of the defi ecosystem. In simple words, any landing protocol is a bank in the world of defi. Using them, we can borrow cryptoassets or, on the contrary, invest our funds in the protocol for further profit.

The most popular landing protocols on the Ethereum network are known to many: aave, compound, maker and many others. All of them have been working for a long time and have earned a good reputation among the crypto community, but they all have one common problem - they offer loans only with overcollateral, and in some cases the collateral must be several times larger than the volume of the loan itself. Оf course this is not suitable for everyone. According to popular belief - overcollateral is one of the main problems of the defi sector, which prevents it from growing At the same time, this is the main difference between Goldfinch and other lending protocol.

So, according to the project whitepaper Goldfinch is a decentralized protocol that allows for crypto borrowing without crypto collateral. This is possible thanks to incorporating the principle of “trust through consensus” when 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

This is what makes the Goldfinch protocol special. Unlike the traditional landing protocols mentioned above, where absolutely anyone who has enough funds to pay off collateral can take out a loan, in the Goldfinch protocol you can get a loan without having anything. But, of course, you need to prove that you have good intentions, a working business and are ready to pay on time. (повернись в камеру)

Now let's look at an example and understand how it actually works.

As an example of how a traditional landing protocol works, I decided to show a simple scheme of interaction a borrower with maker dao, but in fact it will be correct for the vast majority of landing protocols.

So, If we want to take a loan, Maker will require us to collateralize our loan as an incentive to hold them accountable for repaying the debt. However, obtaining a loan will require overcollateralization on our part. Using the Maker Dao example, this means that if we want to receive 100 dai, we will have to provide Ethereum in the protocol in the amount of at least 150 dollars. Its 150 percent collateral, and you also need to take into account the volatility of ethereum and the threat of liquidation in the event of a fall in its price

Now let's take a look at how Goldfinch works with this simple scheme. In this example, we also have a borrower who wants to get a loan, but in Goldfinch's case, he does not need collateral. Upon coming to Goldfinch with a request, the borrower first goes through a thorough background check, where bakers and auditors must ask all their questions and check for fraud and other malicious acts that may take place in the protocol and on the part of the borrower.

Then, if everything is ok, they discuss the terms with the borrower and come to a certain agreement on the interest and the timing of repayment. Now the borrower can take funds from the protocol without any collateral. It's all. The procedure takes only a few days and is very convenient

The most interesting thing is that Goldfinch is not just an idea on paper, but an already working product. By now, at least three companies are borrowers in the protocol. You can see their names on the screen and find out more details in the Goldfinch blog on the website. Thus, the creators of the Goldfinch protocol are changing the world of defi right now and this is awesome!

This was only a small part of the information about the project, you can find more on the website. Thank you for your attention, stay tuned and goodbuy