Goldfinch

The structure of the operation of the decintralized Goldfinch credit protocol

There are two types of issuing a tranche of a mining pool: the senior one — increasing the priority of value in comparison with the others — the younger ones. The possibility of obtaining a loan from the senior tranches and personal privileges are provided to the borrower if the borrower regulates payments and conditions. The highest level is sponsored by partners who receive a share of their assets, thereby receiving the opportunity for significant passive income. Due to this, the motivation for the participation of sponsors in the project and the attraction of funds to the functioning of the protocol increases. The profit is distributed among the sponsors and encourages the desire to invest and participate in small projects, due to the fact that the risks in small businesses are minimal.

The borrower has the right to a smart contract, which is created when receiving a loan. It is possible to create a pool of borrowers based on it.

The conditions can be varied:

Setting personal limits

Acceptable percentage

Long loan terms

Favorable terms of delay

However, the successful development of events requires the correct provision of information about attractive business opportunities and conditions, excluding the possibility of bankruptcy of the beginning project. Depending on the startup’s presentation, the loan amount is proposed, as well as the adjustment of the rights of the parties. When receiving a loan, borrowers are required to pay the pool of borrowers the amount corresponding to the interest and repayment terms. Higher-level participants, namely senior pools and sponsors, have a non-interchangeable token-a Non-Fungible Token, which guarantees the ability to control the contributions of other participants and receive prizes.