DeFi Credit Protocol Goldfinch announces Membership Vaults [Sponsored]
Join the waitlist to upgrade your participation for enhanced yields, and own the new global credit paradigm.
With DeFi yields in a downturn and investors seeking more stable participation opportunities, attention is turning to protocols that bring real-world financial opportunities and assets on-chain. Goldfinch, a decentralized credit protocol focused on connecting the world’s capital to the world’s growth, is one of these opportunities.
Last week, the protocol announced Goldfinch Membership: a novel system to empower Goldfinch’s investors and align participants with the protocol’s long-term success. So what is Goldfinch, how does it offer attractive USDC yields uncorrelated to crypto’s volatility, and how can an investor on the protocol enhance their yields by becoming a Member?
Two-year old Goldfinch is a marketplace for lending USDC to viable off-chain businesses worldwide. The protocol’s loans are fully collateralized off-chain with real-world assets and income streams, and borrowers on the protocol are established credit funds and fintechs in emerging markets, where financing can be difficult or expensive to access.
Active end-borrower loans by country where Goldfinch’s Borrowers have deployed funding accessed on the protocol: Dune
The collapse in crypto yields is drawing DeFi’s attention to projects that can offer investors models for long-term stability. Because Goldfinch’s USDC yields come from the interest generated by real-world, off-chain business activity, it enables investors to take advantage of the yields crypto has to offer without being over-exposed to DeFi’s risk of a collapse in ROI when on-chain volatility hits.
This is in contrast to many “traditional” DeFi lenders, where yields are usually generated by recursive on-chain actions tied to the performance of the wider crypto markets, and dependent upon crypto price appreciation.
While the TVL within the DeFi ecosystem has declined by 65% according to data from DeFi Llama, the interest rates on stablecoin lending have held steady on Goldfinch, an early indicator of the potential long-term benefit of that bringing real-world lending on-chain and expanding DeFi beyond crypto-native activities can offer the industry.
Goldfinch’s recent Membership announcement comes on the heels of a year of growth. In January of this year Goldfinch raised a $25M round led by a16z, with the aim to match the 154x growth the protocol saw in its first year of operation. Over the last year, the protocol crossed over $100M in active loans, reached over 1M people and businesses across 20+ countries with financing via the protocols Borrowers, and was noted as having one of the highest yields for USDC lending in DeFi. The launch of Membership Vaults this month is expected to continue that growth trajectory over the rest of the quarter.
Goldfinch’s 30d Trailing APY has shown an upward trajectory since the market crash this spring: Dune
Become a Goldfinch Member: Expanding participation
Following the Membership launch this month, Goldfinch investors will be able to join a Membership Vault to:
- Receive yield enhancements via Member Rewards
- Support Goldfinch’s growth and expansion
- Access exclusive communication channels, offers, and other benefits
Goldfinch’s Membership Vault system is the first phase of a broader tokenomics redesign (Tokenomics v2), which was approved by the protocol’s community earlier this year and focuses on enhancing the utility of GFI, Goldfinch’s native token.
Goldfinch Members will receive yield enhancements via Member Rewards, which have been earmarked from the Goldfinch treasury and will be distributed pro-rata, based on one’s Member Vault position. In addition, Members will gain access to exclusive communication channels, special offers, and more.
The protocol launched a waitlist for Membership last week. Waitlist participants will be alerted when the first Member Vault goes live, ensuring they can be first-in on Goldfinch’s enhanced participation. Early participation in Membership is incentivized as Member Rewards are distributed pro-rata from a set percentage of the Goldfinch treasury.
Goldfinch protocol revenue: Dune
To become a Member, a participant must be an active Goldfinch investor who holds GFI. Members will be able to deposit staked Goldfinch Senior Pool tokens (FIDU) and/or Backer NFTs into the Membership Vault, plus GFI. The deposited FIDU, Backer NFTs, and GFI can be withdrawn from Membership Vaults at any time, and are not at risk of slashing. Member Rewards will be paid weekly in FIDU. You can learn more about how Membership works in Goldfinch’s announcement.
To get started as a Goldfinch Member today, sign up for the waitlist at goldfinch.finance/membership. The waitlist page includes a checklist of all of the items you’ll need to be ready to become a Goldfinch Member at launch later this month.
Have questions? You can ask Goldfinch’s community managers in the Community Discord. If you’re ready to become a Goldfinch investor to be ready for Membership launch, follow the step-by-step Investor How-To to supply USDC to the Senior Pool for FIDU, or invest as a Backer in a specific Borrower Pool for a Backer PoolToken NFT.
Goldfinch is a decentralized credit protocol on a mission to connect the world’s capital to the world’s growth, by creating a single global credit marketplace. That means everyone, from startups in Lagos to institutions in New York, can borrow from the same capital markets and that all investors can access those deals directly.
Goldfinch’s USDC yields come from real-world lending to proven emerging market businesses, and investments are fully collateralized off-chain by real-world assets, making Goldfinch distinctly different from the highly volatile DeFi lending you may be familiar with.
Learn more at goldfinch.finance, or follow @goldfinch_fi on Twitter.