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Backers evaluate Borrower Pools and provide first-loss (junior tranche) capital to the Pools.
Read about investing in Borrower Pools on the Backers page. Read about Borrowers and their incentives on the Borrowers page.
It is important to understand that you can lose money by participating in the Borrower Pools. If a Borrower doesn't repay the amount they borrow, you will lose your relative portion of that amount. By participating as a Backer, you are taking higher risk by providing first-loss capital—when a Borrower pays back a portion of what they owe, that payment is first applied to the Senior Pool before it is applied to Backers. Therefore, it is possible for Borrowers to make partial repayments and for you to still lose 100% of the amount you supplied.
You can only participate in a Borrower Pool when a Borrower Pool is open. A pool can be open either because 1) a new Borrower pool is raising capital, or 2) a portion of an existing Borrower Pool has opened up. Otherwise, the dapp will show that the pool is Full and you will no longer be able to supply more capital. You can look out for announcements to see when new Borrower Pools are going to be open by subscribing to the Backer Updates newsletter.
Typically, once a Borrower Pool is open, the community shares announcements using Discord and/or Telegram. This announcement will contain a Pool Overview (an example is linked), which describes the Pool deal in depth. It typically holds the key terms of the loan agreement, the repayment schedule, FAQs, and other resources.
The Credit Analysis Grant is a community-led grants program, approved by the community in July 2022, to compensate skilled community members to write Credit Analysis Memos for borrower pools. The credit memos do not contain any investment advice. For more details, please visit this FAQ page.
Each credit memo will be an NDA-gated, multi-page report that follows the same specific format: 1) summary, 2) overview, and 3) credit analysis. The credit analysis section will include details on historical financials, portfolio performance, deal structure, and risk.
The Credit Analysis Memos will be displayed on the dapp within their respective Borrower Pool pages. Users will have to sign into an NDA in order to access the report. Please note, as of February 6, Credit Analysis Memos are only available for the LendEast and the Cauris #2 Borrower Pools.
Usually, the Pool Overview includes a Non-Disclosure Agreement for you to sign. (Read more about NDA's here.) This will give you access to the due diligence data room containing information provided by the Borrower. Each individual Goldfinch Backer is responsible for doing thorough due diligence on their own investments and deciding whether it's a good opportunity for them.
In addition, after you sign the NDA, there is usually a deal-specific Telegram group and/or Discord channel you will be invited to join. There, you can ask Borrowers questions directly, both about who they are and the specifics of the deal.
Each Borrower Pool has a unique set of requirements, which are announced on the Goldfinch Discord server. But typically, the steps are:
When the pool is open, visit https://app.goldfinch.finance/earn and click on the pool in the Borrower Pools list.
Note: when a Borrower pool is full, it will say "full" in the top right corner of the row.
On the pool page, click Supply to view the form. Review the agreement that is linked to understand what you are signing, enter your full name (this is your signature), and enter the amount of USDC you want to supply.
Note: You will be required to enter your full legal name as was provided when registering your UID, and this name will be added to the Borrower's off-chain transaction agreement. This gives you all the associated rights, benefits, and security of the transaction you are investing in.
Note: Sometimes, pools will have a cap on the maximum amount that can be supplied. You may need to adjust your investment amount accordingly.
Review the terms and click I Agree.
Approve the transaction in your wallet.
Done. You should now see the USDC balance you supplied in your balance at the top of the page.
Note: When you supply to a Borrower Pool, you receive an NFT that acts a "digital receipt" representing the amount you supplied. Learn more about this in the Backer section of the documentation.
After you supply capital, you can withdraw up until the time when the Borrower Pool is closed (which typically happens once when the Pool is full). After the Borrower draws down the capital, you will not be able to withdraw until the Borrower makes repayments. As the Borrower makes repayments, you will be able to withdraw your relative portion of those repayments.
Navigate to the Pool's page in the dapp.
Click Withdraw and enter the amount of USDC you want to withdraw from the Pool.
Click Submit.
Accept the transaction in your wallet.
Done. Following network transaction times you should see the USDC you withdrew in your wallet.
Borrower Pools only support USDC investment.
You receive yield each time the Borrower makes an interest payment into the Borrower Pools.
Technically no, but it's strongly recommended that you do sign the NDA in order to review the full due diligence materials about the Borrower Pools you participate in.
You will forfeit your legal rights to the real-world loan document you are signing. You will still be able to supply capital into the Borrower Pool and receive your portion of repayments made on-chain. However, you will have no real-world legal recourse. The Borrower and other Backers will additionally have no obligations to make any repayments to you in the event that there is a a default and they come to a decision regarding how to resolve it.
Yes, if there is a real-world legal agreement between the Borrower and Backers. When you enter your full name, you are directly signing the agreement with the Borrower that is linked in the form. The process by which a Backer can take action against a Borrower will depend on the specific real-world documents related to the pool a Backer invested in.
No, the Borrower can lock the pool and drawdown at any time. Moreover, in theory, it is also possible for the Backers to fill beyond the limit, which would reduce the leverage and expected APY for Backers. The limit displayed on the dapp is just imposed on the frontend as a way to ensure the APY stays at the expected level.
Educational guides on how to use the protocol, for Goldfinch Investors
This section covers instructions on supplying / staking in the Senior Pool
participate in the the Senior Pool to receive yields with ease from automatic capital allocation across the protocol. The Senior Pool is a smart contract that automatically allocates capital across all Borrower Pools according to the consensus those pools receive from Backers.
Read about the Senior Pool on the .
It is important to understand that you can lose money by participating in the Senior Pool. If a Borrower never pays back the amount they borrow, you will lose your relative portion of that loan default. However, if a Borrower pays back a portion of what they owe, that payment will go to the Senior Pool first, before it starts to cover any losses for Backers. In this way the Senior Pool providers more protection, compared to participating directly in Borrower Pools as a Backer.
The APY shared at the top of the is based on a current snapshot in time, and changes depending on two factors:
The Senior Pool's current usage. All interest payments from Borrower Pools is automatically allocated the Senior Pool. As more capital is supplied to the Senior Pool, the effective yield will decline as the repayments are spread across more capital.
How much capital the Senior Pool has deployed across Borrower Pools. As more capital is deployed, increasing utilization, there will be more repayments, thereby increasing the Senior Pool's APY.
The APY presented is a dynamic number that will change both as Liquidity Providers supply/withdraw from the pool, and as Borrowers make drawdowns and repayment from the Pools.
Go to .
Ensure your wallet is connected by clicking Connect.
Ensure you have .
Click Supply and enter the amount of USDC you would like to supply to the Senior Pool.
Review the terms and check off I agree to the
If you check off I want to stake my supply to earn GFI rewards (some additional APY), you will receive additional GFI distributions. You can also choose to stake in a separate transaction after you supply to the Senior Pool, by following the guide.
Please note: Staking does not 'lock' your USDC; you can always withdraw at any time. Staking allows you to receive GFI distributions, which unlock over the first 12 months after staking. For more details, see .
You can see your GFI rewards received for staking FIDU in the GFI tab.
Click Submit.
Accept the transaction on your wallet.
Done. You should now see the additional USDC in your balance at the top of the page.
Note: There is a 0.5% fee when withdrawing from the Senior Pool
Click Withdraw and enter the amount of USDC you want to withdraw
Please note: If you previously staked your FIDU, withdrawing will also unstake your FIDU.
You will receive this amount minus a 0.5% fee that goes towards protocol reserves. The dapp will state what amount you will receive in the UI below the amount you stated.
Click Submit.
Accept the transaction in your wallet.
Done. Following the network transaction times you should see your USDC in your wallet.
FIDU should appear in the assets tab on Metamask
If it doesn't appear, click import token at the bottom of the Assets tab, then custom token. Input the FIDU token address, which is 0x6a445e9f40e0b97c92d0b8a3366cef1d67f700bf, and click Add Custom Token. It should now appear in your assets list.
Yes, as long as there is enough USDC remaining in the Senior Pool. If the Senior Pool is 100% utilized and there is no USDC remaining, you will need to wait for other Liquidity Providers to supply first, or for Borrowers to make repayments.
The Senior Pool only supports USDC.
You receive yield each time Borrowers make interest payments into their Borrower Pools. Borrowers are typically on monthly payment schedules, and different Borrowers make their payments at different times in the month.
This is a manual for receiving GFI.
Go to .
This page will list all of the GFI you have received
If a particular GFI distribution has an unlock schedule, you will need to first Accept it. This will open a transaction to accept in your wallet.
Note: By accepting, you will mint an NFT that automatically manages the unlock schedule
After accepting, it should now show a Claim button. You will be able to claim more GFI over time as it unlocks.
Click Claim to claim the GFI. This will open a prompt, where you can click Claim again.
Accept the transaction on your wallet.
Done. You should now see the GFI in you wallet balance.
Accept: When a GFI distribution has an unlock schedule, you need to "Accept" that distribution before being able to claim it. By accepting, you will mint an NFT that automatically manages the unlock schedule. After accepting, you will be able to claim the GFI as it unlocks.
Claim: When GFI is immediately available (and unlocked, if it was locked before), you will be able to "Claim" it. By claiming, you will get the GFI directly transferred to your wallet.
The box on top of the GFI tab shows a summary of your GFI distributions.
Claimable: This is the amount of your GFI distributions that you can claim immediately. Claiming transfers this GFI amount to your wallet.
Still Locked: This is the amount of your GFI distributions that is still locked. This amount will unlock according to the unlock schedule. Once the GFI unlocks, it will be be claimable.
Total balance: This sum of your claimable and locked GFI.
Locked GFI: The amount of GFI that is still locked.
Claimable GFI: The amount of GFI that can be claimed immediately.
Transaction details: A description of how or why you received the distribution.
Unlock schedule: A description of when the GFI will become claimable.
Unlock status: The percentage of the GFI that has already unlocked.
Claim status: The amount of the GFI you have already claimed.
It is necessary to verify your identity in order to participate in Governance votes or supply capital to Goldfinch.
U.S.-based individuals must also verify their Accredited Investor status in order to supply capital.
The checks that you are a real individual, and then allows you to mint your . The process uses and to perform the third-party verification, which takes privacy and security .
Go to https://app.goldfinch.finance/verify. If you visit the Senior Pool or Borrower Pool pages before verifying, they will prompt you to first verify on this page.
In the Verify your address section, identify whether you are an individual or entity, US or non-US based, and—for US-based—whether you are an Accredited Investor or not.
For Non-U.S. Individuals and U.S. Non-Accredited Individuals: you will be prompted with Verify ID to start the process with Persona. For individuals, you will be asked to upload a passport or national ID documents. Passports are strongly recommended as Persona currently does not support some forms of national IDs.
With Persona: After uploading your ID, you will see the Let's make sure it's you pop-up and you will be prompted to take photos of the front and sides of your face.
Done! The page should say you have successfully verified your address.
Disclaimer: Generally, the address verification process is instant. However, sometimes it can take some time for individuals to get verified. To ensure that you are instantly verified, see the "Helpful Tips" section below.
You will be prompted to visit the Goldfinch bridge site with Parallel Markets.
For individuals, you will be asked to upload a passport or national ID documents. Passports are strongly recommended as Persona currently does not support some forms of national IDs. Entities will have to supply additional business documentation and information.
After submitting your information, Parallel Markets will typically process your information within 72 hours.
Once your KYB/KYC and Accreditation (if applicable) are verified, someone from the Goldfinch community will reach out within 24 business hours to collect the wallet address that your UID will be associated with. Once the address is provided, you will receive a second notification with confirmation that you can proceed with minting yoru UID.
Please note you will need enough ETH in your address to cover 0.00083 ETH + gas fees. The additional 0.00083 ETH helps cover the fees for the Persona service.
Once you have completed your address verification (described above), you will be able to mint your UID.
Naviage to app.goldfinch.finance and select Connect Wallet to connect the same wallet to the dapp that you associated with your UID in Step 1.
On https://app.goldfinch.finance/verify, click Create UID.
Your identity is tied to your Ethereum account address, and you can only have one verified account. Unfortunately, there are some regions, like China, that the Goldfinch protocol currently does not support.
Here are some tips to ensure that your verification is successful on the first attempt.
Ensure that the Identification Document (ID) you are using is an ID type that is accepted by Persona.
Passport is strongly recommended as an identification document, since Persona may not recognize some local IDs.
Make sure your ID has a full legal name (given name + surname), a recent picture, your birthdate, and is not expired.
When using a residence permit as an ID, make sure you take pictures of both front and back.
Use a phone or computer to take a picture of your ID and do not run it through an image editing software.
If you have registered on Persona once using a different Ethereum address, you will not be able to register again.
Some older forms of IDs, like domestic passports, may not work.
Now that you have your UID and are connected to the dapp, read on through the rest of the guides to participate in investing on the protocol.
The Goldfinch decentralized application (dapp), , is how Investors, Borrowers, and the rest of the Goldfinch community participate in the protocol.
There are only a few high-level steps required to interact with the dapp to start investing:
Navigate to
Click "Connect Wallet" on the top right corner: Currently, the Goldfinch dapp supports WalletConnect or Metamask. If you do not have a wallet, click "I don't have a wallet" to set one up.
Verify your identity: We'll cover how to mint a UID in the next page, .
Explore the dapp:
View all of the Borrower Pools and a summary of your holdings on the
View the Senior Pool page, and
View the Borrower Pool pages, and
(Highly encouraged) Join the ! The Discord is a great place to ask the community for help with any questions you have along the way, stay in touch with announcements about different , and generally participate in the community.
Ready to get started? Move on to Verifying Your Identity on the next page.
Goldfinch provides tools to help participants interact with the protocol, but it is your responsibility to stay compliant with all legal, regulatory, and tax laws for your relevant jurisdiction(s). These guides are not financial advice, but are instead educational guides for how to use the Goldfinch decentralized application. All protocol participants are strongly encouraged to consult with their own legal and tax counsel.
Go to .
FIDU is like a "digital receipt" that represents how much you have supplied to the pool It is very similar to . For more information, see .
Current earn rate: This only applies to distributions. This is an estimate of how much GFI you will receive per week. This number changes consistently, depending on the size and utilization of the Senior Pool. See the to learn more.
Learn more about UID .
Click Confirm in the popup that appears to verify the transaction in your wallet.
Advanced: You can check the gas fee and adjust it so that the transaction is as affordable for you as possible. can help you find low gas fees. to learn how to adjust it.
Tada! Your UID will get minted once the transaction is confirmed. You can view yours by connecting your wallet to .
If you still run into issues, please message in the "#verification-support" channel on the community-run .
Currently, liquidity mining is only live for the Senior Pool. Learn more about how Senior Pool Liquidity Mining works here.
See how to participate in the Senior Pool here.
In the Supply form, make sure to check the box to stake your position within the same supply transaction.
Once you complete the supply transaction, you will start receiving GFI distributions from Senior Pool liquidity mining.
On the Senior Pool page, you should see a prompt describe the unstaked FIDU you have with an option to "Stake All FIDU".
Click on the "Stake All FIDU" button to approve and stake your unstaked FIDU.
Once you complete the Stake transaction, you will start receiving GFI distributions from Senior Pool liquidity mining.
You can view the GFI you receive from liquidity mining on the GFI tab. Learn more about claiming GFI here.
Callable loans provide Backers with the flexibility to call back their capital with 2 months notice.
Backers evaluate Callable Deals and provide capital to a single tranche of the deal itself. This new deal went live in March 2023, after community and governance approved the new pool type.
How Callable Deals work
Callable loans are an existing structure in traditional finance that provides liquidity to investors by giving them the right to “call back” their capital at regular intervals.
On Goldfinch, the Callable Deal loan structure gives Backers the right to “call back” their invested capital. Borrowers are required to return 100% of this “called capital” at the end of a “call period.”
For the initial design, call periods will occur every three months and call requests must be submitted at minimum 2 months before the end of the call period (any calls that occur less than 2 months before the closest upcoming repayment date will be paid on the second closest upcoming repayment date).
Example Callable Deal
Callable loans are a suitable option for borrowers with short-term assets that can be liquidated when investors want to redeem their capital. Callable loans are used in traditional finance, but their structure and terms are usually customized to match the capital structure of the Borrower.
As an example deal:
Borrower: Fintech X, who provides buy-now-pay-later (BNPL) loans to customers with a maximum tenor of 30 days
Goldfinch Deal Terms: 2 year loan with a quarterly call period where Backers must serve their call notice at least 2 months in advance
Fintech X borrows from Goldfinch in order to offer more BNPL loans. If a Backer calls back their position early, Fintech X will know at least 2 months in advance. So they wait to get repaid on their 30 day BNPL loans and use that cash to repay Backers’ called capital.
Recalling Principal
As mentioned above, Backers with UID can submit call requests to recall any portion of their principal at any point in time — but must be done at least 2 months in advance to call the next repayment. Once a request is submitted, the Backer continue to receive interest on capital until it is withdrawn.
The illustration below shows a sample deal that demonstrates how the payback period works.
For example: If you submit a call on the earliest possible date in the window (May 1), the time-to-repayment is five months; if you submit on the last possible day of the period (July 31), the time-to-repayment is two months. If a borrower is late on any payments, the ability to submit call requests will remain active.
Understanding the risks
It is important to understand that you can lose money by participating in Callable Deals. If a Borrower doesn't repay the amount they borrow, you will lose your relative portion of that amount. The Borrower repayments are applied pro-rata to outstanding balances in the following order:
All existing interest obligations
All existing call request principal obligations which have been locked in, in order of the call request period they were submitted in.
All accrued interest up until now
Remaining principal balance
Notes: Since initial Callable loans will be bullet loans, in most cases only (1), (2) & (3) apply; in the case of early principal repayments, the full waterfall applies, including (4). The addition of (2) in the repayment waterfall differs from our current deals.
When Callable Deals are open
You can only participate in a Callable Deal when the Callable Deal is open. Otherwise, the dapp will show that the pool is Full and you will no longer be able to supply capital. You can look out for announcements to see when new Borrower Pools are going to be open byhttps://deals.goldfinch.finance/.
Announcements
Typically, once a Callable Deal is open, the community shares announcements using Discord, Twitter, and an email list. Once the deal is live on the dapp, the deal page typically holds the key terms of the loan agreement, a credit memo, a data room, the repayment schedule, FAQs, and other resources.
Getting more details about Callable Deals
Usually, the deal page on the dapp includes both a credit memo and a data room with Non-Disclosure Agreements for you to sign. (Read more about NDA's here.) This will give you access to the credit memo, produced by third-party professional credit analysts, and the due diligence data room containing information provided by the Borrower.
Each individual Goldfinch Backer is responsible for doing thorough due diligence on their own investments and deciding whether it's a good opportunity for them.
In addition, after you sign the NDA, there is usually a deal-specific Telegram group and/or Discord channel you can join. There, you can ask Borrowers questions directly, both about who they are and the specifics of the deal.
Each Callable Deal has a unique set of terms and requirements, but all will require a UID to access (Verify your identity to mint your UID).
When the pool is open, visithttps://app.goldfinch.finance/earn and click on Callable Deal under the Open Deals list. Note: when a Callable Deal is full and closed, it will move to the Closed Deals section.
On the deal page, click Supply to view the form. Review the agreement that is linked to understand what you are signing, enter your full name (this is your signature), and enter the amount of USDC you want to supply. Note: You will be required to enter your full legal name as was provided when registering your UID, and this name will be added to the Borrower's off-chain transaction agreement. This gives you all the associated rights, benefits, and security of the transaction you are investing in. Sometimes, pools will have a cap on the maximum amount that can be supplied. You may need to adjust your investment amount accordingly.
Review the terms and click I Agree.
Approve the transaction in your wallet.
Done. You should now see the USDC balance you supplied in your balance at the top of the page. Note: When you supply to a Borrower Pool, you receive an NFT that acts a "digital receipt" representing the amount you supplied. Learn more about this in the Backer section of the documentation.
After you supply capital, you can withdraw up until the time when the deal is closed (which typically happens once when the deal is full).
After the Borrower draws down the capital, Backers can submit call requests to recall their principal at any point of time. Repayment of call requests happens once every three months on a set date.
Timing
Call requests must be received in the first month of the three month call request period (two months prior to a repayment date) in order to be paid. Any calls that occur less than two months before the closest upcoming repayment date will be paid on the second closest upcoming repayment date.\
How To Submit a Request
Navigate to the deal’s page in the dapp.
Click Submit Call Requestand enter the amount of USDC you want to call back from the deal. Note the expected repayment date.
Click Submit.
Accept the transaction in your wallet.
How to Withdraw Capital
Return to the deal’s page in the dapp on the expected repayment date.
Click Withdraw
Click Submit
Accept the transaction in your wallet.
Done. Following network transaction times you should see the USDC you withdrew in your wallet.
Interest is generated by the product of the interest APR, time elapsed, and the amount of "interest bearing balance".
Interest bearing balance begins as the total amount of principal borrowed by the borrower. Afterwards, interest bearing balance decreases by the amount of repaid principal. However, if the borrower makes an early principal repayment, interest bearing balance is only decreased after repaid principal would become due.
As an example, let's say a borrower borrows $1,000,000 from a Callable Loan in January. In March, if the borrower makes an early principal repayment of $250,000, they still owe interest on the full $1,000,000 amount (the "interest bearing balance") until the next principal due date. So in this case, they would owe interest on $1,000,000 until May 1st. Starting May 1st, they would only owe interest on the new $750,000 amount (the new "interest bearing balance").
** Why? ** In order to make sure there is no incentive to game the timing of call requests, we only update owed principal to lenders at the end of a call request period. In order to ensure all borrowers are paid interest pro rata regardless of the time of their call submission within a call request period, we only update the interest bearing balance at the end of a call request period. Otherwise, earlier call requesters would effectively get less interest even though they were not allowed to withdraw earlier.
What cryptoassets can I supply to Callable Deals?
Callable deals only support USDC investment.
When do I receive yield?
You receive yield each time the Borrower makes an interest payment into the Borrower Pools.
When do I receive principal?
You can call any portion of their principal at any point in time — but must be done at least 2 months in advance to call from the next repayment. Once a request is submitted, you will continue to receive interest on capital until it is withdrawn.
Do I need to sign a Non-Disclosure Agreement (NDA) to invest as a Backer?
Technically no, but it's strongly recommended that you do sign the NDA in order to review the credit memo and full due diligence materials about the Callable Deals you participate in.
What happens if I provide a fake name when I supply capital?
You will forfeit your legal rights to the real-world loan document you are signing. You will still be able to supply capital into the Callable Deals and receive your portion of repayments made on-chain. However, you will have no real-world legal recourse. The Borrower and other Backers will additionally have no obligations to make any repayments to you in the event that there is a a default and they come to a decision regarding how to resolve it.
Are Backers able to take legal action if Borrowers default?
Yes, if there is a real-world legal agreement between the Borrower and Backers. When you enter your full name, you are directly signing the agreement with the Borrower that is linked in the form. The process by which a Backer can take action against a Borrower will depend on the specific real-world documents related to the pool a Backer invested in.
Step-by-step instructions to access Goldfinch's Borrower communication channels
To learn more about Goldfinch Borrower communication channels, read the section of the documentation.
As a reminder, these channels are configured to allow only:
Backers in the Pool in question, i.e. anyone who has at least one pool token which represents their position as a Backer in the pool, and
Senior Pool LPs with at least 10,000 FIDU or staked FIDU tokens.
To protect Borrowers confidential information, Investors will have their access revoked if they don’t meet either of the above requirements.
To access the channel:
Click this to enter the Goldfinch Discord server
Once you are in the server, enter the #guild-join channel to verify your assets. You will find this channel under the ‘Borrower Pools’ category.
3. In the channel, you will see the message pictured below. Click ‘Verify your assets’ and follow the instructions to verify your assets. Please make sure you are using the wallet that contains your pool tokens to verify your assets.
4. Once your asset verification is complete, you will be able to access the token-gated channels for any pools for which you qualify.
In each of these Discord channels, there will be a pinned message containing directions for accessing the password-protected Datarooms where Borrowers will share NDA-protected information. That way, any Backer or LP who accesses the Discord channel using their pool token or FIDU as verification will be able to easily access the Dataroom password as well.
Buying coverage for your productive assets is the best way to hedge against smart contract risk and protect your funds when you are participating in the Goldfinch Protocol.
Buying coverage for the Goldfinch protocol via industry-leading Nexus Mutual will provide insurance against your supply of USDC to the protocol's Senior Pool or Borrower Pools in the unlikely event of a smart contract bug resulting in lost funds.
It's worth noting that coverage only covers smart contract risk, and does not apply to the credit risk of Borrowers not paying back their loans.
If you need any support purchasing cover get in touch with the Nexus Mutual team via their their Discord server, on Twitter or on Telegram.
Once you know what coverage product you want, you should consider the following factors:
How long do you need to be covered? The minimum duration of a cover policy is 30 days and the maximum duration is 365 days.
What payout denomination works best for you? When you buy your cover policy, you have to select the currency you want to receive a payout in should a loss event occur. You can select ETH or DAI. Most users select ETH as they payout denomination for more volatile assets and DAI as the payout denomination for more stable assets.
Which currency do you want to pay for your policy with? You can pay with ETH, DAI or NXM when you buy your cover policy. Consider which one you want to use for payment.
Now that you are ready to buy coverage, head to https://app.nexusmutual.io/home.
On the Home page, you will see the Welcome menu below, which displays your current holdings, covers, claims, and membership status. The view on the Nexus Mutual Home page.
From here, you will select the Buy Cover tab on the main menu. Once you have clicked on that tab, you will see the Buy Cover page, which is presented here: The view on the Buy Cover page of the Nexus Mutual application.
On this page, you can see the different brief explanations of the mutual's cover products. Below these explanations are the various listed protocols, custodians, and yield token cover products.
You can filter by cover product: Yield Tokens, Protocols, and Custodians. You can also enter in the name of the platform or product you want to buy cover for.
In this tutorial, you will follow the process for buying cover by walking through a Protocol Cover policy purchase for Goldfinch Finance.
To find the Goldfinch Finance listing, you can enter the name of the protocol in the Search bar. Click here to see a screenshot.
After searching for "Goldfinch Finance," we can see the Protocol Cover listing for Goldfinch Finance. Because you are protecting a deposit in Goldfinch Finance, you will select Get Quote for that listing. Click here to see a screenshot.
After you click Get Quote, you will see the Quote Details page which looks like the image pictured above
On the Quote Details screen, you will be presented with several fields, which are pictured in the image above and described below:
Amount: This field is where you select your payout denomination (ETH or DAI) and the amount of capital that you want to cover. While payout denomination is only in ETH or DAI, you can cover any asset that is deposited within a listed protocol, custodian or yield token cover product.
Period: This field is where you select the duration of your cover policy. The minimum duration is 30 days and the maximum duration is 365 days. Enter the number of days you want your cover policy to protect your assets for.
Terms and Conditions: This is a brief review of the terms for Protocol Cover, the support chains for the selected protocol, and the conditions for submitting a claim in the event of a loss of funds. Be sure to read this before proceeding to item #4. The link included at the bottom of the Terms and Conditions is the link to the Protocol Cover wording.
"I have read and accept the terms and conditions" field: Before you can proceed with your cover purchase, you need to select this after you have read the Terms and Conditions.
Grant TokenController Permission: If you look at the highlighted item under the Pay In field above, ****you will see the option to pay in either DAI or NXM. Here, you have selected NXM, so the protocol needs you to grant permission over your NXM to continue with payment. You can approve the NXM necessary for payment OR you can approve an unlimited amount of NXM for this and future payments.
Buy Cover: After you have submitted the Grant TokenController Permission approval transaction, you will be able to purchase cover. When your approval transaction is complete, you will see this button appeal as bright green instead of the dull green pictured above.
Since you have read through the Terms and Conditions, clicked that you have read and agreed to the terms, and have chosen to approve 0.13 NXM to pay for the cover policy, you will be prompted to approve the transaction through your wallet provider. In this case, you are using MetaMask and you see the following: The approval transaction prompt to grant the TokenController contract permission to spend 0.13 NXM.
To submit the transaction, select Confirm.
After you have submitted the approval transaction, you can see the pending transaction in the menu on the top bar of the application: Set allowance for TokenController transaction is shown as pending in this drop down menu.
Once the approval transaction is complete, you will be able to click Buy Cover and move through the prompt for the second transaction, which will execute the purchase of your cover policy. To buy your cover, you must see the following fields pictured here: Agreed to terms and conditions; granted TokenController permission to spend NXM; ready to buy cover.
After clicking Buy Cover, you will be asked to approve a transaction. After you submit the transaction, you can see your pending transaction in the drop down menu on the top bar of the application: Buy Cover transaction is shown as pending in this drop down menu.
Once the transaction is approved, you will have successfully purchased a cover policy from Nexus Mutual! In this case, you purchased a Protocol Cover policy for Goldfinch Finance.
To review your newly purchased cover policy, you can go back to the Home tab where you started and look at the Welcome menu under My Covers. Click here for a screenshot.
You can confirm a cover purchase has been successful by checking the My Covers section on this page. Here, you will see a full list of your current cover policies along with the Cover ID, Project Name, Cover Amount, Premium Paid, and the ability to file a Claim.
Now you are ready to buy your own cover policy for the Goldfinch protocol!
