Lenders using decentralized finance protocol Goldfinch were hit hard after another large borrower defaulted. Borrower Lend East previously secured a loan worth $10.2 million through support from Goldfinch users. In an update on April 1, Warbler Labs, the company behind the Goldfinch protocol, announced that Lend East would only be able to repay about $4.25 million of the loan, saying it expected Lend East to default on the remaining $5.9 million when the loan matures on April 3. . "Warbler Labs is retaining outside legal counsel to explore all rights and remedies available to the community to maximize recovery," the company said.
Lend East’s situation is the third breach suffered by Goldfinch protocol users since it began operations in January 2021. Critics say the repeated defaults underscore the difficulty of underwriting emerging market loans and expose serious problems with Goldfinch's protocol model. Goldfinch users said initial credit assessments for Lend East loans were "poorly executed" and that neither Goldfinch nor Lend East provided backers with updated information about the loans in the past year.
Goldfinch does not perform credit assessments on loans itself, but relies on a decentralized audit team to approve borrowers for agreement consideration, the report said. Supporters of the Lend East loan accused auditors of doing a poor job in the loan's initial credit assessment. A user named felix2545 posted on Goldfinch's Discord channel: "The initial Goldfinch credit assessment was poorly executed or the assessor was poorly chosen, which ultimately led to us having multiple defaults on multiple loans."
Lenders using decentralized finance protocol Goldfinch were hit hard after another large borrower defaulted. Borrower Lend East previously secured a loan worth $10.2 million through support from Goldfinch users. In an update on April 1, Warbler Labs, the company behind the Goldfinch protocol, announced that Lend East would only be able to repay about $4.25 million of the loan, saying it expected Lend East to default on the remaining $5.9 million when the loan matures on April 3. . "Warbler Labs is retaining outside legal counsel to explore all rights and remedies available to the community to maximize recovery," the company said.
Lend East’s situation is the third breach suffered by Goldfinch protocol users since it began operations in January 2021. Critics say the repeated defaults underscore the difficulty of underwriting emerging market loans and expose serious problems with Goldfinch's protocol model. Goldfinch users said initial credit assessments for Lend East loans were "poorly executed" and that neither Goldfinch nor Lend East provided backers with updated information about the loans in the past year.
Goldfinch does not perform credit assessments on loans itself, but relies on a decentralized audit team to approve borrowers for agreement consideration, the report said. Supporters of the Lend East loan accused auditors of doing a poor job in the loan's initial credit assessment. A user named felix2545 posted on Goldfinch's Discord channel: "The initial Goldfinch credit assessment was poorly executed or the assessor was poorly chosen, which ultimately led to us having multiple defaults on multiple loans."
Subscribe to Trump
Subscribe to Trump
Trump25,000 BTC options and 217,000 ETH options are expiring today, with a total notional value of $1.6 b…
According to options delivery data released by Adam@Greeks.live on December 22, 25,000 BTC options are about to expire, with a Put Call Ratio of 0.70, a maximum pain point of US$42,000, and a nominal value of US$1.11 billion. 217,000 ETH options are about to expire, the Put Call Ratio is 0.60, the biggest pain point is US$2,200, and the nominal value is US$490 million. Adam@Greeks.live analyzed that cryptocurrencies have fluctuated at high levels this week, the inscription market continues, c...
TrumpApple is discussing with Google to let Gemini provide AI services for iPhone
Apple is in talks to put Google's Gemini artificial intelligence engine into iPhones, setting the stage for a major deal that will shake up the artificial intelligence industry. Gemini is a set of generative artificial intelligence models from Google. The above-mentioned people familiar with the matter said that the two companies are actively negotiating to allow Apple to obtain Gemini's authorization to provide support for some new features of this year's iPhone software. Peop...
TrumpSEC delays decision on VanEck Bitcoin Spot ETF
The SEC has postponed a decision on the VanEck Bitcoin Spot ETF. The regulator said it was launching additional procedures to determine whether the proposed ETF should be approved or disapproved. The SEC requires commentators to provide opinions, and commentators have 21 days to submit written data, opinions and arguments; there is also a 35-day rebuttal period, which means that the approval process will drag on for at least several months. According to previous news, Bloomberg ETF analyst Ja...
Trump25,000 BTC options and 217,000 ETH options are expiring today, with a total notional value of $1.6 b…
According to options delivery data released by Adam@Greeks.live on December 22, 25,000 BTC options are about to expire, with a Put Call Ratio of 0.70, a maximum pain point of US$42,000, and a nominal value of US$1.11 billion. 217,000 ETH options are about to expire, the Put Call Ratio is 0.60, the biggest pain point is US$2,200, and the nominal value is US$490 million. Adam@Greeks.live analyzed that cryptocurrencies have fluctuated at high levels this week, the inscription market continues, c...
TrumpApple is discussing with Google to let Gemini provide AI services for iPhone
Apple is in talks to put Google's Gemini artificial intelligence engine into iPhones, setting the stage for a major deal that will shake up the artificial intelligence industry. Gemini is a set of generative artificial intelligence models from Google. The above-mentioned people familiar with the matter said that the two companies are actively negotiating to allow Apple to obtain Gemini's authorization to provide support for some new features of this year's iPhone software. Peop...
TrumpSEC delays decision on VanEck Bitcoin Spot ETF
The SEC has postponed a decision on the VanEck Bitcoin Spot ETF. The regulator said it was launching additional procedures to determine whether the proposed ETF should be approved or disapproved. The SEC requires commentators to provide opinions, and commentators have 21 days to submit written data, opinions and arguments; there is also a 35-day rebuttal period, which means that the approval process will drag on for at least several months. According to previous news, Bloomberg ETF analyst Ja...
<100 subscribers
<100 subscribers
Share Dialog
Share Dialog
No comments yet