What is Gondi? Gondi is a decentralized NFT Lending platform designed to create the most efficient NFT credit market on Ethereum. So what is special about this project? Let’s find out with Weakhand in this article.
Before jumping into the article, you can refer to some of the following projects to gain more knowledge about NFT Lending.
- What is NFTfi? Overview of NFTfi cryptocurrency
- What is BendDAO? BendDAO cryptocurrency overview
- What is MetaStreet? MetaStreet cryptocurrency overview
- What is OpenSky? OpenSky cryptocurrency overview
What is Gondi?
Overview of Gondi
Gondi is a decentralized NFT Lending platform that applies the P2P Lending model deployed on Ethereum. Gondi provides borrowers with the best loans and borrowers can receive passive interest during the lending process.
In addition, Gondi also implemented a full and partial refinancing model for all outstanding debt in a loan, creating a more dynamic and liquid space in the market.
Recently on July 19, 2023, Gondi announced the implementation of Gondi Points to incentivize active participants in the protocol, encouraging activities that benefit the community. Users can accumulate Gondi Points in the following 3 ways:
- Lending
- Borrowing
- Referrals
Earning Gondi Points as a Lender/Borrower will be calculated based on the following criteria:
- The more users lend or borrow, the more Gondi Points they receive.
- Higher APRs, larger loan amounts, and longer loan terms all result in more points for lenders and borrowers.
- Gondi Points are credited only for repaid loans, upon repayment.
- To avoid unwanted behavior, loans with an APR above 100% will receive bonus points with an APR capped at 100%.
- If the principal of the loan is above the floor of the NFT collection, points will be calculated with the principal capped at the floor.
- Gondi will remove points from the wallet if wash trade activities are detected.
Earn Gondi Points through referrals:
Users can also earn points through a referral system. Each wallet connected to Gondi has a unique referral link that tracks on-chain transactions from the referrer’s wallet.
- With a successful referral of a lender/borrower, the user receives 25% of the lending/borrowing points earned by the referrer.
-
New users are rewarded with an additional 50 points if they join via a referral link.
Mechanism of action of Gondi
Gondi’s mechanism of action takes place according to the following steps:
Step 1: Borrowers list their NFTs on the Gondi platform as collateral. Currently Gondi only supports 12 NFT collections as collateral, everyone can see them here.
Step 2: Lenders (Borrowers) will make a loan offer along with some loan parameters such as: Loan amount, APR and loan duration.
Step 3: Borrowers accept Lender’s loan offer that offers the most suitable offer. The loan amount will then be transferred to the borrower and the collateral NFT will be deposited into Gondi’s escrow contract.
Step 4: The borrower repays the principal + accrued interest in full at any time before the maturity date to receive the collateral NFT back.
Sale: If the borrower fails to repay the loan by the due date, the collateral NFT will be transferred to the borrower.
What is the Gondi difference?
Gondi’s biggest difference lies in its refinancing model. Gondin deploys 2 refinancing models including: Instant refinancing and partial refinancing.
With the instant refinance model: Any lender can improve the terms on any outstanding debt without the borrower’s approval.
Key conditions that must be satisfied to effect an immediate refinancing include:
- Reduced APR: Lowering the APR will minimize interest costs over the loan term.
- Extension of maturity: Extending the loan maturity period helps borrowers increase flexibility in terms of time to repay debt.
- Principal adjustment: If the principal amount can be increased further, the additional amount will automatically be transferred to the borrower’s personal wallet.
When immediately refinancing a loan, a potential lender who meets one of these conditions must repay the principal and accrued interest to the original lender. There is no limit to the number of times a loan can be refinanced, with each new lender receiving the interest accrued since the loan originated. Here is an example of a loan on Gondi that uses the instant refinance model:
- B lists his NFTs on the platform as collateral to receive loans on Gondi.
- There are 3 Lenders involved in the lending process. B chose Lender A because he received the best offer and received 10 WETH, APR: 22% and loan period: 30 days.
- While the loan is ongoing, Lender B wants to enter into a refinancing process for an amount of 11 WETH, APR: 10% and loan period of 30 days.
- Lender B must pay the principal + interest to Lender A and become the new borrower in the loan.
With the partial refinance model: A loan can be partially refinanced such that it can consist of up to 10 different tranches, where each tranche must be at least 5% of the total principal amount of the loan. get a loan. Partial loan refinancing is possible as long as the APR is reduced by at least 1% and the principal of the new tranche is at least 5% of the total principal amount.
When refinancing a portion of a loan, the protocol does not permit amendments to the maturity date or principal amount as this would change the risk profile of the loan as a whole, potentially affecting existing lenders. other credit of the loan given. Here is an example of a loan on Gondi that uses the partial refinancing model:
- B lists his NFTs on the platform as collateral to receive loans on Gondi.
- There are 3 Lenders involved in the lending process. B chose Lender A because he received the best offer and received 10 WETH, APR: 20% and loan period: 30 days.
- While the loan is ongoing, Lender B wants to participate in the refinancing process for the amount of 7 WETH. Lender B must repay the principal and interest to Lender A and participate in the loan.
- Similarly, if Lender C wants to participate in the refinancing process with an amount of 5 ETH, it will repay Lender A 2 ETH + interest and Lender B 3 ETH + interest.
In case the loan is liquidated: Gondi will conduct a 72-hour English auction, in which participants publicly bid against each other with each bid required to be 5% higher than the current price. previous bid. The highest bidder wins the mortgage at the end of the auction. Gondi allocates 1% of the auction proceeds to the wallets that initiate the auction and settle the auction. The proceeds from the auction will be made as follows:
- Proceeds < Principal + Interest Expenses + All Pending Interest -> Prorated to the lender based on principal + interest expenses.
- Proceeds ≥ Principal + Interest Expense + All Pending Interest -> Each lender receives the amount owed including pending interest. The remaining portion is divided proportionally based on principal cost + interest.
Road Map
Gondi deploys a long roadmap for product development with 3 immediate goals including:
- Loan package (loan includes multiple collateral) for borrower and lender.
- Additional support for ERC 20 Tokens on the platform.
- Support more collections as collateral on the platform.
Core Team
Update…
Investor
July 11, 2023: Gondi announced a successful call for 5.35M USD led by Hack VC and Foundation Capital. In addition, there is also the participation of other investors including: DragonFly, Pantera Capital, 6th Man Ventures,…
Tokenomics
Update…
Gondi Project Information Channel
- Website: https://www.gondi.xyz/
- Twitter: https://twitter.com/gondixyz
- Discord:
summary
Gondi is an NFT Lending platform but is different from other platforms thanks to its flexible refinancing process. Above is all the information I want to provide to everyone about Gondi. I hope everyone will receive interesting knowledge.