Goldfinch is a decentralized credit protocol for crypto loans without collateral.
The GFI token is a core component of the Goldfinch protocol and can be used for many functions. Including:
Community governance: GFI holders participate in governance to determine the direction of the protocol.
Backer Staking: Backers can stake their GFI tokens to specific backers to signal early consensus when those backers participate in the borrower pool. The GFI can also act as a backstop for potential loan defaults.
Auditor Voting: Auditor voting is required to grant borrowers permission to borrow from the protocol. Borrowers pay for these votes using GFI tokens.
Auditor Staking: Auditors stake GFI tokens in order to be selected for auditor voting.
Participant Incentives: All participants receive ongoing allocations to motivate their participation. This includes liquidity providers who fund the premium pool, backers who fund both the borrower pool and stake in other backers, auditors who participate in voting, and borrowers who successfully repay their pool.
Community Grants: The community may decide to provide grants to participants who make meaningful contributions to the Goldfinch Protocol and ecosystem.
