GONDI is Ethereum's leading non-custodial NFT lending protocol for digital art and collectibles, with over $130 million in gross volume, $25 million in outstanding debt, and $40M TVL. Launched in July 2023, GONDI V1 disrupted the market with loan mechanics such as instant refinancing and pro rata interest. These innovations created a more competitive and capital-efficient market. By November 2023, GONDI V2 introduced Vaults and Flash Actions, cementing GONDI as the most flexible and advanced NFT lending protocol. Introducing GONDI V3 GONDI V3 is now live, marking a year since the initial proof of concept. This upgrade brings significant enhancements, most notably the introduction of Tranche Seniority, enabling users to tailor their strategy with unprecedented precision.

New Features of GONDI V3:

• 🔢 Tranche Seniority

• ⚡ Efficient Renegotiations

• 🤝 Largest Lien Buyout

• 🌐 Renegotiations via Collection Loan Offers

•🛡️ Close to Maturity Lockup

Let’s explore each of these:

1. Tranche Seniority

In GONDI V3, a loan can originate from multiple offers from many lenders, making large loans easier to come together. In addition, loans can now have tranches with different seniority for more tailored strategies.Previously, borrowers had to choose between high LTV/high APR or low LTV/low APR. With GONDI V3, lenders can specialize and select different risk levels within the same loan, having the flexibility to choose low-interest rates with smaller principal amounts, or they can choose higher interest rates for larger loans. This allows borrowers to maximize their principal while keeping APRs low.

• Senior Tranches → Repayment priority.

• Junior Tranches → Lower repayment priority but potential higher returns.

Lastly, GONDI’s flexibility also allows borrowers to top up their existing loans with more junior tranches if there are lenders willing to do so without changing the profile of earlier lenders.

2. Efficient Renegotiations

GONDI V3 makes loan renegotiations easier and more efficient.

Lenders can now extend offers to their outstanding loans with one click and only need to have balance in their wallet if there’s a delta in the renegotiation principal.

3. Largest Lien Buyout

GONDI V3 introduces the largest lien buyout feature for handling loan defaults involving multiple lenders.

When a loan with multiple lenders defaults, the lender with the largest principal amount can buy out other tranches for 100% of the principal and accrued interest before the collateral goes to auction, allowing them to retain the collateral.

4. Renegotiations via Collection Loan Offers

GONDI V3 further enhances flexibility and capital efficiency by allowing borrowers to renegotiate their loans using existing collection loan offers.

This enables borrowers to access capital faster, reducing waiting times and potentially securing better refinance terms. For lenders, it increases the likelihood of their collection loan offers being accepted, improving their lending opportunities.

5. Close to Maturity Lockup

In V3, loans cannot be refinanced during the last 10% of their duration. This aims to prevent others from speculating on a potential default and seizing the collateralized NFT at the last minute.

The goal is to provide lenders with a more stable and predictable lending environment.

GONDI V3, The Most Advanced NFT Lending Protocol

GONDI V3 marks a major advancement, with Tranche Seniority at the forefront. This improvement allows users to fine-tune their strategies like never before. Alongside many other feature upgrades and a more streamlined user experience, GONDI V3 cements its status as the most advanced, capital-efficient, and flexible NFT lending protocol.

For detailed information, visit https://docs.gondi.xyz.

Get Involved

Join GONDI’s growing community on Discord, follow on X, and most importantly, visit Gondi.xyz to experience GONDI V3.

Audits and Other Details

Security is a top priority for GONDI. The auditing process for V3 included comprehensive audits from Code4arena, Halborn, 0xQuit, and Qckp.

All new loan originations starting today, September 3rd, 2024 will use GONDI V3 contracts and their addresses can be found at docs.gondi.xyz/gondi-v3/protocol-contracts.

Outstanding V1 and V2 loans remain unchanged with this new release. Both will continue to work with prior mechanics and are still compatible with the GONDI dApp. Moving forward, all loan offers and originations will exclusively use V3 contracts.