The decentralized finance (DeFi) lending protocol Goldfinch has approved plans to expand beyond Ethereum and launch its services on Base, a layer-2 blockchain created by major crypto exchange Coinbase.
Goldfinch governance members reached consensus on the proposal after extensive debate over the benefits of onboarding more users through Coinbase’s large customer base versus remaining solely on Ethereum.
The Goldfinch community will next hold a soft vote and audit the code before officially activating the deployment contract to add Goldfinch to Base. This represents a major step toward lowering transaction fees and boosting adoption for the DeFi lending platform.
Additionally, Goldfinch’s native GFI token surged 14% to $1.74 following news of the expansion on December 1.
As an Ethereum-exclusive project until now, the shift to a more affordable layer-2 network will enable greater accessibility by reducing prohibitively high gas fees on the main Ethereum blockchain.
Goldfinch co-founder Blake West and engineering manager Greg Egan were strong proponents for the move to Base, citing the blockchain’s rapidly growing total value locked of over $300 million. They also referred to Coinbase’s massive user base over 100 million worldwide that Base apps can leverage.
As one of the largest centralized crypto exchanges that recently went public, Coinbase’s support provides credibility and a built-in customer pipeline that will accelerate DeFi adoption. Goldfinch aims to take advantage of Base as a customer acquisition channel going forward.
This latest development comes on the heels of Goldfinch marking the full repayment of its first-issued loan to crypto lender Fazz Financial in late November. The successful repayment of this genesis loan is a promising indicator for the newly expanded lending protocol.
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