Crypto lending platform Goldfinch has suffered its third default
The cryptocurrency lending platform Goldfinch has experienced its third default, and affected users are calling on Goldfinch to use funds from the protocol's $107 million treasury to repay them. Borrower Lend East had previously obtained a loan worth $10.15 million with the support of Goldfinch users. On April 1, it was announced that Warbler Labs, the parent company of the Goldfinch protocol, stated that Lend East will only be able to repay about $4.25 million of the loan and is expected to default on the remaining $5.9 million when the loan expires on April 3. Critics say that repeated defaults highlight the difficulties of underwriting loans in emerging markets and expose serious problems with the Goldfinch protocol model.
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