With AlloyX support, Goldfinch lenders will now enjoy freedom to exit and enter lucrative investment opportunities previously requiring long-term commitments
SAN FRANCISCO, CA / ACCESSWIRE / July 14, 2022 / An investor's ability to quickly manage their positions in response to changing market trends or individual needs has always been critical, but is especially the case in the sometimes volatile crypto industry. While DeFi credit has unlocked the real-world impact of crypto, along with lucrative yields, these loans have often come with requisite capital lockups. With today's partnership between DeFi credit protocol Goldfinch, and liquid staking protocol AlloyX, the days of sacrificing yield for liquidity are over.
Because credit protocols employ new methods of underwriting and credit rating to would-be borrowers, they're able to reach unique investing opportunities and offer higher yields than most other lending protocols. This transformation in protocol design and risk management has opened up emerging market investing through protocols like Goldfinch, which are growing DeFi's real world impact and turning the sector into an engine of economic growth, instead of speculation. However, because real-world lending often necessitates fixed-term capital, these opportunities have frequently reduced lender liquidity for up to three years.
With the integration of AlloyX into the Goldfinch credit market, lenders can now realize immediate liquidity on their locked-up investment positions, without sacrificing the unique earning opportunities presented by lending to real-world businesses.
Unlock Your Liquidity
Goldfinch enables non-crypto businesses to receive crypto loans by relying on 'trust through consensus' to ascertain a borrower's risk. The approach involves evaluating on and off-chain factors, and its borrowers are financial technology companies operating around the globe. Goldfinch requires backers to contribute funds for the full loan term to generate higher yields.
While capital lockups are used to preserve liquidity and maintain market stability, they come with an air of uncertainty as lenders aren't able to access their funds for a predetermined period. The current bear market has sparked fear among users as projects liquidated crypto holdings due to token price drops.
AlloyX provides a unique yield generation opportunity in that it aggregates a number of junior loans into a single investment vehicle. This enables attractive yields with the benefit of a diversified loan portfolio. AlloyX also goes above and beyond each credit protocols' underwriting process by vetting each opportunity. In addition to the investment vehicle, AlloyX aims to achieve liquidity for its depositors by creating a secondary market to trade in-and-out of positions.
"I think the Goldfinch community will love this integration because adding liquidity to investment opportunities never goes out of style," said Blake West, Warbler Labs CTO and Goldfinch Co-Founder. "We're excited to support the launch of the AlloyX Goldfinch integration, and believe it will bring great value to the community by expanding investment optionality."
What does this mean?
By removing lockup requirements, investors can truly capitalize on the full scope of Goldfinch lending opportunities. Overhead costs are reduced as AlloyX requires no additional engineering support from the Goldfinch team to integrate. New and existing lenders can use AlloyX to participate in Borrower Pools without a lockup period and enjoy full liquidity on their obligations.
"We created AlloyX to further bridge DeFi investing into impactful real world investment opportunities, like scaling fintech companies in the global south" said Alexandre Liege, AlloyX Co-Founder. "We wanted to make it easier for the Goldfinch community to access vetted opportunities without having to lock up liquidity for years."
AlloyX is an engine of financial opportunity and freedom. Its technical capabilities in diversified lending opportunities and user accessibility, paired with Goldfinch's lending solutions, enables DeFi users to access a diversified portfolio of vetted opportunities providing attractive yields decoupled from the broader crypto market. We expect that it will further fuel the growth of this exciting part of DeFi.
AlloyX is a decentralized liquid staking protocol for crypto loans to real world businesses. AlloyX provides simple and secure access to vetted real world opportunities decoupled from the broader crypto market and frees liquidity locked up in DeFi's uncollateralized lending and credit markets.
Get started with AlloyX today: https://alloyx.xyz/
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Alexandre Liege, CEO, at
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