Introducing GoldLink Protocol
After raising $1.4M in PreSeed funding last year with the goal of addressing the continual issues of ambiguity and inefficiency in decentralized lending, we’re excited to share more about the GoldLink Protocol as we prepare for launch.
What is GoldLink?
GoldLink is a DeFi protocol built on Arbitrum, leveraging a prime brokerage model to facilitate undercollateralized lending with a focus on transparent risk and capital efficiency.
Given the state of trust and identity in crypto today, the best immediate solution for on-chain institutional undercollateralized lending is prime brokerage. Currently, however, lenders are often unaware of the counterparty risk they face in lending pools, while borrowers face poor capital efficiency.
GoldLink solves the above issues by safely offering a wide range of on-chain high-yield strategies. Lenders will only ever have exposure to protocols and strategies they have explicitly allocated to. For borrowers, the protocol can effectively offer the ability to run trading strategies as they would in-house, with leverage to amplify their returns.
How it works
Lenders will be provided with the tools to fully assess risk on each strategy through the protocol’s lending dashboard, which provides all relevant metrics such as historical performance, risk profile, and the user’s own return profile. Once a lender has deposited funds, they will begin accruing yield as assets are deployed by borrowers. Other protocols will be able to integrate with GoldLink to act as a source of additional liquidity.
Borrower strategies are both flexible and secure. Borrowers make singular actions through their Prime Broker contract, specifying the deployment of loaned capital. If the action the borrower takes does not meet the predefined validations, the call reverts. Additionally, after enough drift, the position can be auto-unwound. Within these bounds, the borrower is free to pursue their strategy across available routers and allowed assets however they want.
Borrowers can see available capital in each strategy and then borrow a multiple of the collateral they deposit on a strategy-by-strategy basis. Liquidation risk will be clearly defined under a health factor.
Future Ambitions
As GoldLink continues adding strategies, the protocol will establish itself as a best-in-class prime brokerage solution catering primarily to institutional borrowers. It will do so while providing lenders with competitive, risk-adjusted returns and fully transparent and quantifiable risk.
Initially, strategies will be added and monitored by the team. In future versions, the protocol will look to engage the community to participate in, among other things, governance and strategy selection. Along with greater community control of the protocol, in the future GoldLink would like to add multi-chain strategies. In addition, the team will explore the potential to enable lenders to deploy assets to multiple strategies at once without needing a separate allocation per strategy.
What’s Next
A phased rollout of the protocol will begin in Q2 2024, starting with a public testnet for those interested in early access to the protocol. Delta-Neutral Funding-Rate Farming on GMX will be the first strategy available on the platform, with additional strategies following soon after.
In the coming weeks the team will be releasing more information about the protocol and initial strategy. For the latest updates, join our communities on Discord and Telegram. To get in touch with the team, message us on X/Twitter or through email at info@goldlink.io
