📚Helpful Resources
Below are some documents that will help you better understand the protocol:
Goldfinch Docs - A detailed description of the Goldfinch protocol, explaining the roles of the different protocol participants
Goldfinch Dapp - The Goldfinch decentralized web application. Here you can view the historical deals that have been funded on the protocol
Glossary
Below is a glossary of terms helping to bridge TradFi to Defi terminology as it relates to the Goldfinch protocol
| Goldfinch Term | Traditional Term | Definition |
|---|---|---|
Borrower | Borrower | The credit fund or fintech that borrows from the protocol, for the pupose of lending to their clients / customers |
Backer | Junior / Subordinated investor | FIrst-loss provider to the unitranche structure surfaced through the Goldfinch protocol. In some cases, borrowers act as Backers by contributing junior capital |
Senior Pool | Senior Tranche | Blind diversified pool supporting all deals in the protocol by funding the senior tranche of each unitranche borrower pool |
Liquidity Provider (LP) | Senior Investors | Passive investor who supplies capital into the Senior Pool |
Goldfinch Protocol | N/A | Represents the smart contract which governs how capital can be supplied and repaid |
Stablecoin | N/A | Cryptocurrencies where the price is designed to be pegged to a cryptocurrency, fiat money, or to exchange-traded commodities (such as precious metals or industrial metals) |
Borrower Pool | N/A | A unitranche pool of capital containing both first loss junior capital provided by the Backers, and senior capital provided by the senior pool |
GFI | NA | The Goldfinch protocol native token. You can learn more about this here |
Leverage Ratio | N/A | The amount of money invested by the Senior Pool in a given Borrower Pool divided by the amount invested by the Backers. |
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