Gondi is a decentralized peer-to-peer NFT lending protocol engineered to create the most efficient NFT credit market. Gondi enables continuous underwriting, refinancing, and renegotiation of loans, creating a more open and composable market.
We are thrilled to announce that Gondi is now live on Ethereum mainnet ✨
Read on to learn more about the protocol and how Gondi is revolutionizing NFT lending.
Make sure to also head over to Twitter to learn more about the $5.35M seed round of Florida Street, Gondi’s core contributors, with participation from industry heavyweights Hack.vc, Dragonfly, Pantera, 6th Man Ventures, and many others.
The Gondi Mission
Gondi’s mission is to create the most capital-efficient credit market for NFT assets by allowing for far more composable interactions between lenders and borrowers. A healthy credit market is crucial for the growth of the underlying asset class by providing access to capital, improving overall market liquidity, attracting more users and accelerating innovation.
A more efficient NFT lending market means borrowing is cheaper for asset owners while lenders enjoy higher capital utilization rates improving returns. This fosters an increase in market adoption and size, allowing lenders to deploy more capital and have larger loan portfolios. Gondi v1 and subsequent improvements are, and will always be built with an uncompromising commitment to creating a more efficient credit market that benefits borrowers, lenders, and the greater Web3/NFT community.
The Platform
Gondi is a peer-to-peer protocol that introduces new and unique dynamics by creating a competitive and always-on refinancing market. Let's now unpack what exactly we mean by that and what makes Gondi unique.
Most crucially, Gondi does not have any automatic liquidations. The lender terms include a due date, and as long as the borrower pays back the principal and accrued interest by this date, they avoid defaulting on the loan. Additionally, Gondi brings two fresh mechanics to the NFT lending table, these are refinancing and open renegotiations.
Refinancing on Gondi
Gondi loans can be refinanced in full or partially by prospective lenders. A loan is instantly refinanced when a prospective lender provides better terms than the existing loan terms. It does not involve any intervention from the borrower. This allows any lender to become the lender of record for any given loan, provided they are able to provide objectively better terms to the borrower. This allows borrowers to enjoy better loan terms without spending additional time or gas.
Partial refinancing allows lenders with a smaller bankroll to access higher principal loans and get exposure to blue chip assets. This is in the interest of making the credit ecosystem a more level playing field, which in turn makes credit more efficient for borrowers. On Gondi, loans can be partially refinanced into 10 tranches with each representing at least 5% of the principal amount. For partial refinancing as well, the lender must objectively improve the terms of the loan.
Refinanced loans do not require the borrower’s approval since they are getting objectively better terms, once a prospective lender locks in objectively better terms, the loan is instantly refinanced. No more waking up to an borrower accepting a loan worse than the one you wanted to offer. Loan terms are no longer limited to the offers received before a loan begins, instead, loan terms can be improved at any time while the loan is outstanding.
Additional Gondi Features
Refinancing is not the only innovation that Gondi has to offer. Gondi is bringing a suite of new features to the table that make NFT lending much more composable. Here’s a quick rundown:
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Dynamic renegotiations. Renegotiations are not limited to the existing lender on Gondi – anyone can make an offer! Allowing more participants into the renegotiation process allows borrowers to access more beneficial and efficient credit opportunities.
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Offer flexibility. Lenders have the ability to send multiple individual offers, collection offers, or both. Offers can be made for both high LTV and APR and low LTV and APR loans. Lenders will thus be able to diversify their portfolio through different NFT collateral, LTVs, and APRs.
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Lending limits. Lenders can place limits on loans before making a collection offer so that they can control and manage their bankroll better.
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Art Blocks collections. Gondi will launch with lending support for Squiggles, Fidenzas, Ringers, and other Art Blocks Curated collections. Collection offers can be made on all of these.
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And much, much more!
And that’s a wrap! We’ll be diving deeper into the protocol in the next few weeks so make sure you are following us via the links below to stay up to date.
Gondi is now live. Start using the protocol today and share your experience on Twitter by tagging us @gondixyz.
About Gondi
Gondi is a decentralized non-custodial NFT lending protocol engineered to create the most efficient NFT credit market. The protocol enables continuous underwriting, allowing for full and partial refinancing of all outstanding loans, creating a more dynamic and liquid space.