Goldfinch Community Approves Deployment on Base L2, GFI Up 14%
The community behind Goldfinch, a decentralized finance (defi) lender, has reached a quorum to deploy the protocol on Base, a layer-2 blockchain launched by Coinbase. This move is expected to onboard more users to Goldfinch’s defi loan service. The next step involves a soft vote by the project’s governance council, followed by the drafting and auditing of the code for the update.
Once these steps are completed, Goldfinch will be activated on Base through a multi-sig wallet. The announcement of this deployment caused the price of Goldfinch’s native token, GFI, to surge by 14% on December 1st.
Expanding to a Blockchain with Cheaper Transaction Fees
Prior to its approval for launch on Base, Goldfinch was exclusively available on Ethereum’s blockchain. However, the project’s co-founder and engineering manager argued for expansion to a blockchain with cheaper transaction fees. They believe that Base, with its growing user base and lower fees, presents an opportunity for Goldfinch to acquire more customers.
Ethereum has long been known for its expensive gas fees, which hindered wider adoption. Layer-2 solutions like Base offer cheaper transaction rates while maintaining the security of Ethereum’s mainnet. Since its launch in August 2023, Base has gained traction and locked over $300 million in value.
Complete Repayment of Genesis Loan
In other news, Goldfinch announced that Fazz Financial has fully repaid its genesis loan issued by the project. This marks an important milestone for Goldfinch’s flexible loan structure, where both borrowers and lenders have the option of early repayment.
Hot Take: Goldfinch Expands to Base L2 for Greater Accessibility and Scalability
Goldfinch’s decision to deploy its defi loan service on Base’s layer-2 blockchain is a strategic move to enhance accessibility and scalability. By leveraging Base’s lower transaction fees and larger user base, Goldfinch aims to attract more users to its platform. This expansion also addresses the issue of expensive gas fees on Ethereum’s mainnet, providing a more cost-effective solution for users. With the complete repayment of its genesis loan by Fazz Financial, Goldfinch demonstrates the success of its flexible loan structure. Overall, this deployment on Base L2 positions Goldfinch for continued growth and adoption in the defi space.
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