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There have been two risk events in the past month. Previously, a16z led two rounds of investment.
Community comment: Goldfinch "explodes faster than P2P"
There have been two risk events in the past month. Previously, a16z led two rounds of investment.
BlockBeats reported on October 10 that according to CoinDesk, a report from the RWA DeFi lending protocol Goldfinch governance platform pointed out that a $20 million lending pool on its platform had bad debts and $7 million was at risk of loss. It is reported that the lending pool provided a four-year loan of 20 million USDC to the fintech credit fund Stratos in February 2022, and guaranteed it at an annual interest rate of 11%. Warbler Labs was the underwriter. Stratos' investment in a real estate technology company REZI and digital assets "did not meet expectations", and Warbler Labs said it would compensate all losses of investors in the lending pool.
This is not the first risk and default incident that has occurred on Goldfinch. BlockBeats previously reported that on September 14, Goldfinch had reached an agreement with Tugende, the defaulter of a $5 million loan, on a loan restructuring plan. It is reported that the plan may recover the $5 million loan from Tugende, the defaulter, for the East African motorcycle rental financing project.
It is reported that Tugende had previously defaulted on $5 million in funds collected from the Goldfinch agreement for Kenyan operations in October 2021. As of May this year, Tugende's monthly interest was $53,400, five months before the principal was due. Since it defaulted in June, it caused panic in the Goldfinch community.
Goldfinch is a star project in the RWA track and is highly anticipated by venture capital firms such as a16z. According to previous news, in 2021 and 2022, Goldfinch received $11 million and $25 million in financing led by a16z, respectively. On May 6, 2022, the outstanding balance of the Goldfinch platform exceeded $100 million.
Related reading: "Goldfinch: Bridging the world of traditional finance and DeFi | Project introduction"
The Goldfinch protocol will grant credit lines to lending institutions, through which they can borrow stablecoins from the protocol's funding pool. After obtaining the stablecoins, the institutions will exchange the stablecoins for fiat currency and lend the fiat currency to their users through traditional channels. In this way, the off-chain market can fully enjoy the value of on-chain assets, and the value of on-chain assets will be infinitely magnified. The issuance, underwriting and related businesses of all off-chain debts will be handled by relevant professional institutions.
Community Comment: Goldfinch "collapses faster than P2P"
Now, two incidents involving fund risks have occurred on the Goldfinch platform within a month, which has also caused community users to question its security. Social media X (formerly Twitter) KOL @fishkiller posted a message pointing out that the Stratos pool invested in two projects in a row and got nothing in return, and questioned whether there might be more shady operations behind the Goldfinch crash.
Some users also compared it to the previous P2P crash, believing that the Goldfinch crash was "much faster" than that.
