Question 1

What is Goldfinch (GFI)?

Accepted Answer

Goldfinch is a decentralised credit protocol that seeks to revolutionise how credit activities are conducted globally. Its mission is to migrate the world's credit activities onto blockchain technology, thereby enhancing access to capital and promoting financial inclusion internationally.

Question 2

What is used for?

Accepted Answer

Goldfinch offers cryptocurrency loans without the need for crypto collateral, a common stumbling block in traditional crypto lending. This approach democratises access to cryptocurrency capital for a wider global audience. The protocol employs a 'trust through consensus' principle, enabling borrowers to prove their creditworthiness based on the collective assessment of other participants, as opposed to the typical requirement for over-collateralising with crypto assets. This method provides the foundation for an immutable, on-chain credit history, an essential element for any scalable lending model, especially in developing markets.

Question 3

# Core Functions of GFI Token

Accepted Answer

* **Community Governance:** Holders of the GFI token can partake in governance decisions, influencing the future direction of the protocol.
* **Participant Incentives:** Participants receive ongoing rewards to encourage their involvement, including liquidity mining for those providing liquidity to the Senior Pool.
* **Community Grants:** The protocol awards grants and bounties to those who contribute significantly to the advancement of the Goldfinch protocol and ecosystem.
* **Backer Staking:** Backers can stake GFI tokens to support other Backers in Borrower Pools, enhancing their leverage and providing a buffer against loan defaults.
* **Auditor Votes:** GFI tokens are used by auditors to vote on granting borrowers permission to borrow from the protocol.
* **Auditor Staking:** Auditors stake GFI tokens to be eligible for participation in the voting process.

Question 4

Who Created Goldfinch (GFI)?

Accepted Answer

Goldfinch was founded in 2020 by Blake West and Michael Sall, who aimed to transform the digital lending and borrowing landscape through the application of blockchain technology.