For the NFT credit markets to take off, great user experience and unfettered access to financial credit are crucial factors. Borrowers need liquidity in the cheapest, most flexible way. Lenders should have enough avenues to maximize their APRs.
Take the case of borrowers. Gondi offers a suite of benefits:
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Instant access to liquidity.
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Interest accrues only on the outstanding duration of the loan.
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As long as you pay your loan back before the due date, your position will not be liquidated under any circumstances.
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Lenders can automatically refinance your loan as long as they offer objectively better terms. This requires no action from your end, and borrowers pay no gas fees.
In this article, we will explore a step-by-step process for borrowing and repaying on Gondi.
Taking out a loan on Gondi
1/ Visit gondi.xyz and click ‘Launch App’ in the top right-hand corner.
2/ Login via the ‘Connect Wallet’ button.
3/ When you connect with your wallet, make sure the network is set to the Ethereum Mainnet. Make the change in Settings → Networks → Ethereum Mainnet.
4/ Head over to the ‘Get a Loan’ tab on top of the page to see the list of NFTs in your wallet that you can use as collateral. Bear in mind that only those collections that have been whitelisted by Gondi will appear on the page. Reach out to us if you have specific requests for the whitelist!
5/ From here, you can ‘list’ and solicit offers on the NFTs that you wish to borrow against. A few important points to keep in mind about the listing process.
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Borrowers do not pay any gas fees for listing NFTs.
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Listing is not an action on the application. That is, by listing, you are not giving Gondi any permission over your asset. There is no risk and no cost to listing an NFT on Gondi.
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You do not need to list an asset to get offers on it. Unlisted NFTs will also receive offers, as you can see from the image above. Listing, however, helps you boost the offers on your item.
6/ Once you’ve received offers on your collateral, you can evaluate the different loan terms on the NFT page.
7/ You can sort your offers by Principal, APR and Duration, evaluate the maximum interest you’ll have to pay, and refer to the collection floor price. Users can choose to borrow in either wETH or USDC. Make sure you account for the origination fee (if it exists), which is paid to the lender. Our priority is to ensure that users have all the ammunition to make the best choices for themselves. For example, if your item is floor, and you receive a collection-level offer, it will be beneficial for you to accept it.
8/ Some alpha on Gondi loans: The interest rates on borrower’s assets are set by the lenders and the market. That will remain so. But, in a few weeks, on Gondi, borrowers will get to decide the loan duration. Keep your eyes peeled for the announcement!
9/ If there is an offer that you like, you can accept those terms by clicking on the linked ‘Borrow’ button. It is a simple, single-step process. Approve the transaction on your wallet, and voilà, you’re in!
10/ Borrowers can input their email address to get reminders from Gondi as the loan reaches the due date. We highly recommend that users leverage this feature for timely warnings to avoid forgetting and defaulting on their precious NFTs.
As a borrower, you agreed to a specific loan term. But, one day, you wake up to find that your terms have gotten magically better overnight. What is happening? This is Gondi’s instant refinancing feature in play, which lets any user instantly become the new lender of record for an outstanding loan, given they provide objectively better loan terms to the borrower. This does not require permission or involvement from the borrower, and is verified and automatically executed by the Gondi system. Most importantly, borrowers don’t pay a single penny in gas fees when their loans are refinanced.
Repaying your loan
11/ If you want to repay your loan ahead of time, head over to the ‘Borrowed’ section to find the ‘Active Borrowed Loans’ category. Choose the active loan that you wish to repay, and click the ‘Repay’ tab on the far right.
12/ This is, again a single-step process. Approve the transaction on your wallet to pay the principal + accrued interest, and bam! You have your precious NFT back in hand. As you can also see from the image above, the total interest accrues only as long as the loan is outstanding.
User experience will be paramount for the growth of the NFT credit market. At Gondi, this is our top focus — providing a frictionless, risk-free experience, with all complexity abstracted out. We offer the best gas fees in the market, the most transparent terms, and automated features that are tailored to the benefit of each market participant.
About Gondi
Gondi is a decentralized non-custodial NFT lending protocol engineered to create the most efficient NFT credit market.
Borrowing is cheaper for asset owners, while lenders enjoy higher capital utilization rates and improved returns. There are no automatic liquidations, and the platform enables continuous underwriting, refinancing, and renegotiation of loans.
READ MORE: All you need to know about Gondi