Governance members agreed that launching Goldfinch’s DeFi lending service on Coinbase’s decentralized network would be beneficial and help onboard more users.
We’ve reached the community behind DeFi lender Goldfinch. quorum We deploy our protocol on Base, a layer 2 blockchain launched and supported by Coinbase, a major cryptocurrency exchange. Next, the project governance council will hold a soft vote before developers draft and audit the actual code for this update.
Finally, the Council activates Goldfinch on Base by shipping the deployment smart contract code through a multi-signature wallet.
The protocol’s native token, GFI, soared 14% on December 1 following the news, trading at $1.74 when this report was written.
Prior to its approved launch on L2 Base, Goldfinch was only available on Ethereum’s blockchain. But the project’s co-founder Blake West and engineering manager Greg Egan argued that the project should expand to blockchains with cheaper transaction fees.
From a business perspective, we believe that Base will continue to improve and that Coinbase will increasingly expose its 100 million+ user base to the Base app. Goldfinch can leverage this as a customer acquisition channel.
Goldfinch on Base Proposal
Ethereum is a long-standing pillar of the blockchain industry, but it is notorious for its expensive gas fees. The high cost of moving assets on-chain was a barrier to further adoption until the advent of scaling solutions like Base, commonly known as L2.
L2 can process transactions at a much lower price compared to the Ethereum mainnet while maintaining the transaction security synonymous with cryptocurrencies’ largest DeFi chains. Notably, Base has gained on-chain activity since Coinbase launched on August 9, growing its total value to over $300 million.
This makes Base the only decentralized network launched by a U.S. listed company and the third largest layer 2 network according to Defillama at press time.
In other Goldfinch news, the project outstanding Full repayment of the original loan issued to Fazz Financial.