Governance members agreed that launching Goldfinch’s defi loan service on Coinbase’s decentralized network would be beneficial and help to onboard more users.
The community behind Goldfinch, a defi lender, reached quorum to deploy the protocol on Base, a layer-2 blockchain launched and backed by major crypto exchange Coinbase. Next, the project’s governance council will hold a soft vote before developers draft and audit the actual code for this update.
Finally, the council will activate Goldfinch on Base by shipping the deployment smart contract code through a multi-sig wallet.
The protocol’s native token GFI jumped 14% on Dec. 1 following the news, trading at $1.74 when this report was written.
Before its approved launch on L2 Base, Goldfinch was exclusively available on Ethereum’s blockchain. However, the project’s co-founder Blake West, and engineering manager Greg Egan argued for expansion to a blockchain with cheaper transaction fees.
From a business standpoint, we believe Base will continue to improve and Coinbase will expose more and more of their 100M+ user base to Base apps. Goldfinch can take advantage of this as a customer acquisition channel.Goldfinch on Base proposal
Ethereum, while a long-standing pillar in the blockchain industry, is infamous for expensive gas fees. This high cost of moving assets on-chain was a stumbling block to greater adoption until the advent of scaling solutions like Base commonly known as L2s.
L2s can handle transactions at far cheaper rates compared to Ethereum’s mainnet while retaining the transaction security synonymous with crypto’s biggest defi chain. Base in particular has garnered on-chain activity and climbed to over $300 million in total value locked since its launch by Coinbase on Aug. 9.
This makes Base the only decentralized network released by an American publicly traded company and the third-largest layer-2 network according to DefiLlama at press time
In other Goldfinch news, the project marked the complete repayment of its genesis loan issued to Fazz Financial.