Glossary
This glossary defines key terms used in GONDI's dApp.
Principal
The amount of WETH or USDC borrowed/lent.
APR (Annual Percentage Rate)
The annualized cost of borrowing, expressed as a percentage.
Gross APR
[Sum of 1 Year Accrued Interest] / [Principal Amount]
Net APR
[Sum of 1 Year Accrued Interest] / [Principal Amount + Interest cost]
Effective APR
Borrower Effective APR: [ Accrued Interest + Origination Fee / Principal ] * [365/Duration]
Lender Effective APR: [ Accrued Interest Profit + Origination Fee / Principal + Previous Interest ] * [365/Duration]
Interest
The cost that accrues over time for borrowing, calculated based on APR, principal, and loan outstanding time.
Accrued Interest
The loan interest amount accumulated over time but not yet paid.
Accrued Interest Profit
The interest amount accrued by the lender holding the loan.
Previous Interest
The interest amount accrued by previous lenders that the new lender must transfer to refinance the loan.
Interest Cost
The sum of outstanding interest and accrued interest from previous refinancings.
Origination Fee
An optional one-time fee (WETH or USC), paid by the borrower to the lender at the start of a new loan or renegotiation (regardless of the loan's outcome). The origination fee amount is deducted from the principal amount.
Due Date (or Maturity Date)
The date by which the borrower must repay the loan's principal and accrued interest to avoid default.
Loan Duration
The period during which the borrower has to repay the loan in full, including accrued interest—usually expressed in days.
Loan Default
When a borrower fails to repay the loan plus accrued interest by the due date. In single-tranche loans, the lender can claim the collateral. In multi-tranche loans, the collateral is auctioned, and the proceeds are distributed pro-rata to lenders.
Repayment amount
The total amount to be repaid by the borrower, including principal and accrued interest.
Loan Offer
A proposal extended by a lender to a borrower outlining loan terms, including principal, APR, due date, and optional origination fee.
Loan Collection Offer
A loan offer that can be accepted by a borrower by collateralizing any NFT that belongs to collection the loan offer was created for.
Offer Capacity
The number of borrowers that can accept the same collection offer.
Refinancing
A transaction in which a prospective lender provides lower APR terms to a borrower, becoming the new lender of record.
Partial Refinancing
A transaction in which a prospective lender offers better APRs for a portion of an outstanding loan.
Renegotiation
A transaction where a prospective lender provides different loan terms that are not strictly better than the outstanding loan terms but are preferred by the borrower.
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