Lenders deposit funds into Goldfinch and receive interest payments from borrowers.

Goldfinch is a non-custodial lending protocol built on Ethereum. Goldfinch was founded by Blake West and Michael Sall and launched in 2020.

GFI token holders own and govern the protocol. They currently take a cut of the interest and a withdrawal fee (revenue). Goldfinch’s investors include a16z, Coinbase ventures, Kindred ventures etc.

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# Goldfinch Earnings Methodology

## 1. Overview

Goldfinch earnings represents the protocol's daily net profit, calculated as total revenue minus total expenses in USD. This metric measures the protocol's financial performance by tracking USDC-denominated fee collections as revenue and GFI token incentive distributions as expenses. The calculation provides insight into whether the protocol generates more value from lending activities than it distributes through token rewards.

## 2. Data sources

- **Ethereum event logs**: Parsed events from Goldfinch v1 and v2 smart contracts including reserve fund collections, withdrawal fees, and token reward distributions
- **Revenue events**: `ReserveFundsCollected` events from both Pool contracts (v1) and TranchedPool contracts (v2), plus `ReserveFundsCollected` events from SeniorPool contracts for withdrawal fees  
- **Expense events**: `BackerRewardsClaimed` events from BackerRewards contracts, `RewardPaid` events from StakingRewards contracts, and `RewardPaid` events from CommunityRewards contracts
- **Token metadata**: USDC and GFI token decimal specifications for amount normalization
- **End-of-day price feeds**: Daily closing prices for USDC and GFI tokens for USD conversion
- **Credit pool mapping**: Static configuration mapping pool contract addresses to human-readable credit pool titles

## 3. Step-by-step calculation

### Component A: Revenue calculation
- **Purpose**: Calculate daily USDC revenue from lending operations and withdrawal fees
- **Logic**: Extract USDC amounts from reserve fund collection events across Goldfinch v1 and v2 contracts. For v1, collect from Pool contract `ReserveFundsCollected` events. For v2, collect from TranchedPool contract `ReserveFundsCollected` events. Additionally collect withdrawal fees from SeniorPool contract `ReserveFundsCollected` events. Map the originating contract addresses to credit pool titles using the dimensional mapping table. Filter out duplicate events using distinct transaction hash, log index combinations. Truncate timestamps to daily boundaries and sum all USDC amounts by day.
- **Key fields**: `amount` (USDC reserve collections), `account_address` (originating contract), `block_timestamp` (event timing), `account_title` (mapped credit pool name)

### Component B: Token incentive expenses  
- **Purpose**: Calculate daily GFI token distributions as protocol expenses
- **Logic**: Union three types of GFI reward distributions. First, extract backer rewards from `BackerRewardsClaimed` events, including both `amountOfTranchedPoolRewards` and `amountOfSeniorPoolRewards` components as separate rows. Second, extract staking rewards from StakingRewards contract `RewardPaid` events. Third, extract community rewards from CommunityRewards contract `RewardPaid` events, but exclude rewards paid to addresses in the predefined denylist of approximately 60 addresses. Filter out duplicate events and aggregate all GFI amounts by day.
- **Key fields**: `amount` (GFI reward amounts), `user` (reward recipient), `reward` (reward amount), `block_timestamp` (distribution timing)

### Component C: Currency conversion and normalization
- **Purpose**: Convert both revenue and expenses to USD for comparable calculation  
- **Logic**: Apply decimal corrections to normalize USDC (6 decimals) and GFI (18 decimals) amounts to standard units. Convert USDC revenue amounts to USD using end-of-day USDC price feeds. Convert GFI expense amounts to USD using end-of-day GFI price feeds. Both conversions use the price from the same date as the underlying transaction.
- **Key fields**: `revenue` (USD-converted USDC amounts), `expenses` (USD-converted GFI amounts), converted amounts maintain daily timestamp boundaries

### Final aggregation
- **Combining components**: Sum total daily USD revenue across all credit pools and fee sources. Sum total daily USD expenses across all reward distribution types. Both totals are calculated independently before combination.
- **Currency conversion**: All amounts converted to USD using respective end-of-day token price feeds matched to transaction dates
- **Time aggregation**: Daily boundaries created by truncating block timestamps to day level, with all intraday transactions summed together
- **Final calculation**: Daily earnings equals total daily USD revenue minus total daily USD expenses. Apply zero-filling strategy for dates with no transactions to maintain continuous time series. The result shows daily net profit or loss in USD terms.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

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