Private credit is a $7 trillion asset class providing loans and debt financing to non-bank lenders. Historically, only institutions were able to invest in private credit to earn high yields with a low correlation to stocks and crypto.
Goldfinch is a global decentralized credit protocol that allows investors to diversify their crypto portfolios by investing in low volatility, 90-day liquid private credit deals. Founded in 2021, Goldfinch users have incurred zero losses to date.
How you make money
Goldfinch lets users select the private credit deals they would like to invest in. Once invested, users earn a return from monthly interest payments and any principal repayments from the borrowers.
How Goldfinch makes money
Goldfinch does not charge any fees to investors in Deals. 10% of interest payments go to the Goldfinch treasury while the other 90% is allocated to investors in the Deals. The Senior Pool generates revenue from a 0.5% exit fee on withdrawals.
Is it safe?
Goldfinch is backed by prominent venture firms like a16z crypto, Y Combinator Continuity Fund, Coinbase Ventures.