The crypto lending platform Goldfinch has encountered its third default event

ChainCatcher news, the crypto lending platform Goldfinch has encountered its third default, with affected users calling for Goldfinch to withdraw funds from the protocol's $107 million treasury for repayment. Borrower Lend East previously secured a loan worth $10.15 million with the support of Goldfinch users.

On April 1, news reported that Goldfinch protocol parent Warbler Labs announced that Lend East would only be able to repay about $4.25 million of the loan, and stated that Lend East is expected to default on the remaining $5.9 million when the loan matures on April 3. Critics argue that the recurring defaults highlight the difficulties of underwriting loans in emerging markets and expose serious issues with the Goldfinch protocol model.