Hey y’all, I’m the cofounder of Goldfinch. I think this is great, but wanted to add some thoughts, and I also had some questions.
To start, if you were to participate in the junior portion of Goldfinch pools (ie. as a Backer, in Goldfinch terminology), then your yield would actually be substantially higher than what you have listed. For example, in Almavest Basket #4, the “headline” rate is 12.5%, but Backers get a 6.25% boost (as seen in the app), meaning an actual rate of 18.75%. This boost comes from the design of the protocol, where the Senior Pool adds additional capital to pools that receive sufficient consensus from Backers, and 20% of the Senior Pool interest is re-allocated to the Backers as compensation for doing the hard work of assessment. So @sidhemraj had written that the return would be 10-11% for Almavest, but it would actually be more like 18-19.
Second, I’m curious if the intention of the index would be to allocate capital as a Backer to any of Goldfinch’s borrower pools, or only specifically ones from Almavest? There are lots of great Borrowers on Goldfinch besides just Almavest. Related, all of the Borrower pools now are over subscribed (more will open soon). So the $REAL index could either A.) potentially buy portions from existing Backers (each Backer has an NFT representing their portion). or B.) Just get in on new pools as they open up. Both would be great!
Third, there is another option here which is for the $REAL Index to go into the Goldfinch Senior Pool, instead of the individual Borrower Pools. The advantage of the Senior Pool is that it can always take more capital, and it’s much safer as it’s automatically diversified and is protected by Backer capital (which is always first-loss). The downside is it’s much lower return (7-10% after protocol fees), and fluctuates with the amount of capital coming in, so could in theory get heavily diluted. So all in all, maybe that’s not the right goal for the $REAL index, but it is an option. You could even mix and match I suppose.
My two cents is that simply participating as a Backer in all of the pools (and especially acting as a potential liquidity provider for existing Backers) could be the right move. If the $REAL index also acted as a liquidity provider to existing Backers, you could probably take a liquidity fee (eg. 2% discount on the NAV)
Love the idea! Down to help how I can.