# Introducing GONDI #### What is GONDI? GONDI is a decentralized, non-custodial, peer-to-peer protocol for trading and financing NFTs. Users can buy, sell, bid, and borrow against ERC-721 and ERC-1155 collateral. GONDI is deployed on Ethereum mainnet and HypeEVM. #### Trading GONDI aggregates listings from native GONDI, OpenSea, and the CryptoPunks marketplace. Standard listings are subject to a 0.5% protocol fee. Private listings, public listings, and Sell & Repay (sale of escrowed collateral with automatic loan repayment) are supported. The protocol supports standard bids, multi-item bids, trait and multi-trait bids, and stealth bids (visible only to the NFT owner; bidder wallet and balance are not disclosed). #### Lending GONDI is a peer-to-peer NFT lending protocol with pro-rata interest, instant refinancing, and partial (tranche) refinancing. V3.1 introduces Tranche Seniority for risk segmentation across loan tranches. #### V3.1 Features * **Cross Currency Support.** NFTs listed in one currency can be purchased or bid on in another supported currency. Conversion is handled by the Purchase Bundler. Available on Ethereum mainnet only. * **Tranche Seniority.** Lenders can refinance a portion of an outstanding loan with defined seniority, enabling more granular risk pricing. * **Stealth Bidding.** Bids are visible only to the owner of the targeted NFT. Bidder identity and balance are not exposed on-chain or in the UI. * **Sell & Repay.** Borrowers can sell escrowed collateral in a single transaction. Outstanding loan principal and accrued interest are repaid; any surplus is transferred to the borrower. {% hint style="info" %} **GONDI V1 & GONDI V2 Outstanding Loans: No action needed.** \ Loans originated on GONDI V1 & GONDI V2 are not impacted by GONDI V3 and mechanics will remain the same. {% endhint %} {% hint style="info" %} The contents of GONDI docs are a collection of the latest development updates and are never considered final. {% endhint %} # Buy & Sell on GONDI Gondi is the most powerful place to trade NFTs. Beyond aggregating liquidity from every major marketplace, Gondi offers professional-grade bidding tools you won't find anywhere else, including the only stealth bidding system in the market. #### Unified Marketplace Liquidity Gondi aggregates listings from across the ecosystem so you can browse, compare, and buy from one interface: * **Native Gondi listings**: exclusive inventory including listings from items in loans * **OpenSea listings** * **CryptoPunks listings** * **Tokenworks** #### Selling on Gondi **Standard Listings** See Protocol Fees for full fee details. * **Public listings**: visible to all buyers * **Private listings**: restricted to a specific wallet address * **Off-Market listings:** set a private asking price without publicly showing the NFT as listed. If a copatible bid meets or exceeds your ask, the sale executes. **Sell & Repay** Sell & Repay lets you list collateralized NFTs directly. When the sale closes, your loan is automatically repaid and any surplus is sent straight to your wallet. One transaction, fully settled. #### Advanced Bidding **Stealth Bidding** **Exclusive on GONDI.** Place a bid that's completely invisible to everyone except the NFT owner. Your wallet address, balance, and bid history stay hidden. **Multi-Item Bidding** Place a single bid that can be filled by *any* NFT from a curated set. Perfect for collectors building positions across multiple items in a collection. Set your price once and let the best seller come to you. **Trait & Multi-Trait Bidding** Bid on exactly the attributes you want. Target specific traits (e.g., any CryptoPunk with a "Beanie") or stack multiple trait requirements together (e.g., "Zombie + Earring + Cigarette"). Your offer fills only when an NFT matching every criterion is sold to you. **Edition Bidding** Place buy bids on ERC-721 editions. #### Fee & Royalty Configuration **Broker Fees** Power users, OTC desks, and aggregators can route trades through Gondi with built-in broker support: * Specify a broker wallet address and fee percentage on any sale * Fees are distributed automatically on settlement, with no manual reconciliation **Creator Royalties** Royalties are fully optional and configurable: * Set custom royalty rates per listing * Payments flow automatically to creator wallets at settlement * Honor creator economics on your terms # Off-Market Listings Off-Market Listings let you set a private asking price for an NFT without creating a public listing or showing the asset as for sale. The asking price is stored off-chain. If a compatible bid meets or exceeds your asking price before expiration, the sale executes automatically. Use an Off-Market Listing when you are willing to sell at a specific price, but do not want to broadcast your intent to sell, anchor market expectations, or invite public negotiation. *** #### How It Works 1. Connect your wallet to GONDI. 2. Select the NFT you want to sell. 3. Open the sell panel and click `Create New Listing`. 4. Select `Off-Market`. 5. Enter your asking price. 6. Choose an expiration. 7. Optionally enable royalties, if available for the collection. 8. Confirm the listing. After confirmation, your Off-Market Listing waits for a matching bid. *** #### Matching Bids An Off-Market Listing can match compatible bids, including: * Public offers * Collection offers * Stealth Offers If a bid meets or exceeds your asking price, the sale executes automatically. If the matching bid is higher than your asking price, you receive the full bid amount, not just your asking price, less applicable marketplace fees and any enabled royalties. *** #### Visibility Off-Market Listings are designed to keep the sale intent private until execution. When an item is listed Off-Market a basket of similar items appear in Gondi's homepage to incentivize buyers without revealing the details. Before the sale executes: * The specific NFT is not revealed. * The owner is not revealed. * The asking price is not revealed. #### Fees Off-Market Listings use GONDI marketplace fees. Fees and any enabled royalties are deducted from the final sale price before proceeds are sent to the seller. For Off-Market Listings: * Normal Off-Market Listing: 2% seller fee. * Off-Market Listing used with Sell & Repay: 2.5% seller fee. Your estimated proceeds are displayed before you confirm the listing. *** #### Off-Market with Sell & Repay Off-Market Listings are compatible with Sell & Repay for eligible NFTs in active GONDI loans. If your NFT is collateral for an active loan and a compatible bid matches your Off-Market Listing: 1. The sale executes. 2. The outstanding loan is repaid from sale proceeds. 3. The NFT is released from escrow. 4. Applicable marketplace fees and any enabled royalties are deducted. 5. Remaining proceeds are sent to your wallet. No manual repayment is required. For escrowed NFTs, the Off-Market Listing must satisfy Sell & Repay requirements, including covering the outstanding repayment amount and expiring before the loan due date. # Trades GONDI Trades enable peer-to-peer atomic swaps of NFTs and ERC-20 tokens between two wallets. Trades are exclusive to GONDI and settle through Seaport. #### Mechanics A trade is a bilateral exchange between two counterparties. Each side can include any combination of: * One or more NFTs (ERC-721 or ERC-1155\[required to be vaulted in Gondi vaults]) * WETH * USDC Both sides of the trade are signed off-chain and settled atomically on-chain. #### Use Cases * **NFT-for-NFT swaps.** Direct exchange of one or more NFTs without converting to a base currency. * **Asymmetric swaps.** NFTs plus a cash component on one or both sides to balance value differences. * **Bundled liquidations or acquisitions.** Move multiple NFTs between wallets in a single transaction. * **OTC settlement.** Privately negotiated deals executed without listing on a public marketplace. #### Fees Trades are subject to a **0% protocol fee**. Creator royalties, if applicable, are configurable per trade. Standard Ethereum gas costs apply. #### Settlement Trades are executed via Seaport, the order settlement protocol developed by OpenSea and used across the NFT ecosystem. Each trade order is signed by both counterparties and submitted on-chain for atomic execution. #### Availability Trades are available on Ethereum mainnet. # Loan Basics #### Loan Properties Every GONDI loan has: * **Principal Amount**: Loan size (in WETH or USDC) * **Gross APR**: Annual percentage rate * **Due Date**: Repayment deadline to avoid default * **Origination Fee**: Optional upfront fee (deducted from principal) * **Collateral**: Your NFT (ERC-721s, ERC-1155s, legacy ERC-721s) {% hint style="info" %} **Pro Rata Interest** Interest only accrues while your loan is active. Repay early to save on interest costs - no penalties for early repayment. {% endhint %} ### Loan Example

Gondi Loan without refinancing

#### How Loans Work 1. **Browse**: List your NFT to see available offers 2. **Select**: Choose loan amount and terms - GONDI automatically finds the cheapest combination 3. **Receive Funds**: Get principal minus any origination fees; your NFT goes to escrow 4. **Repay**: Pay back principal plus interest before due date to retrieve your NFT 5. **Default**: If unpaid by due date, lenders can claim your NFT through liquidation #### Repayment Rules * **Full repayment only**: Must pay principal + all accrued interest at once * **No partial payments**: Installments not supported * **Anytime before due date**: No early repayment penalties # Loan Offers GONDI is a peer-to-peer lending marketplace for NFTs. Lenders compete to offer the best loan terms, and borrowers pick the deals they want. ### How It Works #### Making Loan Offers (Lenders) Create loan offers by setting: * **Principal**: Amount you'll lend (WETH or USDC) * **APR**: Interest rate you want * **Duration**: How long borrowers have to repay * **Origination Fee**: Optional upfront fee You can make offers on specific NFTs or entire collections. #### Getting Loans (Borrowers) 1. See all available loan options on your NFT (including automatically combined offers) 2. Pick the option with the best terms 3. Get funds instantly (minus any origination fees) 4. Repay by the due date to get your NFT back #### Automatic Offer Combinations GONDI automatically combines compatible offers to create better loan options with lower cost or higher principal amounts. ### Loan Mechanics #### Offer Requirements Every offer needs: * **Maximum Principal**: How much you'll lend * **APR**: Your interest rate * **Due Date**: Repayment deadline * **Senior Tolerance**: Controls offer combinations (explained in Advanced Concepts) * **Expiration Date**: When your offer expires Optional: * **Origination Fee**: Deducted from loan amount upfront * **Capacity**: For collections, your total lending budget #### Loan Tranches (When Offers Combine) **Senior Tranche**: Lower risk position in combined loans **Junior Tranche**: Higher risk position in combined loans *Note: Repayment priority only applies during liquidation - see liquidation details for more information.* #### Collection Offers & Capacity **Collection Offers**: Apply to any NFT in a collection (like all CryptoPunks) **Capacity**: Your total budget across all loans * You offer max 5 WETH per loan with 50 WETH capacity * This supports 10 full loans **or** 20 half-loans OR any combination #### Competitive Improvements * **APR**: New offers must be 1% better than existing ones * **Principal**: Must meet collection-specific minimums (see appendix) * **Identical Offers**: Processed first-come-first-served #### Offer Management * **Active**: Live and visible * **Hidden**: Live but not shown in app (still works onchain) * **Cancelled**: Cannot be accepted * **Expired**: Automatically becomes invalid ### Advanced Concepts #### Understanding Senior Tolerance (ST) Senior Tolerance determines the maximum amount that can be senior to your offer when offers get combined: * **ST = 0**: Your offer can only be the safest (senior) position * **Higher ST**: You accept that other safer debt (principal + interest) can be repaid before you ST is calculated based on the principal plus accrued interest of senior tranches at loan origination. **How Offer Combinations Work**: When an offer has Senior Tolerance > 0, it can be combined with other offers. GONDI creates combined loan options that borrowers see as single choices with better overall terms. #### Effective APR (eAPR) **Effective APR (eAPR)**: The true cost of your loan including origination fees, calculated on an annual basis assuming repayment at maturity. GONDI uses eAPR to determine the best loan combinations and present the most cost-effective options to borrowers. ### Examples #### Single Offer Loan **Available**: 10 WETH at 18% APR for 6 months **Borrower wants**: 7 WETH **Result**: 7 WETH loan at 18% APR, 3 WETH remains available #### Combined Offers Loan **Available Individual Offers**: * Offer A: 5 WETH at 20% APR, ST = 10 WETH * Offer B: 8 WETH at 25% APR, ST = 0 WETH **GONDI Creates Combined Option**: 10 WETH loan option * Senior tranche: 5 WETH from Offer B at 25% * Junior tranche: 5 WETH from Offer A at 20% * Why combinable: Offer A's ST accommodates Offer B's debt (5 WETH principal + interest < 10 WETH limit) * Borrower sees this as one loan option with a better eAPR than taking 10 WETH at 25% #### Collection Offer **Offer**: 15 WETH max per CryptoPunk, 150 WETH capacity, 22% APR **Usage**: Can support 10 full loans, or mix of partial loans totaling 150 WETH #### # Refinancing #### What is Refinancing? **Refinancing = Automatic Better Deal** Refinancing lets any lender take over your existing loan by offering significantly better terms. **You don't need to do anything** - if someone offers better terms that meet the requirements, your loan automatically improves. **Key Point**: Unlike renegotiation (which requires your approval), refinancing happens automatically because it only allows strictly better terms for you. #### How Refinancing Works 1. **Any lender** can refinance your active loan (during allowed periods) 2. **New lender** must offer at least 10% better APR (20% → 18% or better) 3. **New lender fronts payment** - pays original lender full principal + all accrued interest to date 4. **Automatic switch** - your loan terms improve instantly, no action needed 5. **You repay everything** - when you repay, the new lender gets back what they fronted plus their own accrued interest **Important**: The new lender doesn't lose the interest they pay to the original lender - you'll repay them that amount plus their own interest when the loan matures. #### Refinancing Requirements **APR Improvement**: Must be at least 10% better than current rate * Example: 20% APR → must improve to 18% APR or lower **Principal**: Can be increased (you get the extra amount) but cannot be decreased **Due Date**: Can be extended but cannot be shortened **Tranches**: In GONDI V3, individual tranches can be refinanced separately #### Refinancing Lock-ups **When you CAN'T refinance**: * First 15% of remaining loan duration * Last 15% of remaining loan duration **Lock-up resets**: Each time your loan gets refinanced, the 15% lock-up periods restart based on the remaining duration. **Example**: * Original loan: 30 days * Lock-up periods: First 4.5 days and last 4.5 days * If refinanced on day 10: New lock-up for 15% of remaining 20 days = 3 days #### Refinancing Example **Original Loan (April 1st)**: * Principal: 10 WETH * APR: 20% * Due: April 30th (30 days) **Refinanced (April 10th)**: * Principal: 10 WETH (same) * APR: 20% → 14% (30% improvement ✓) * Due: April 30th (same) **What happens**: * New lender fronts payment to original lender: 10 WETH + 0.0548 WETH interest (10 days at 20%) * Your loan now accrues at 14% instead of 20% * You save money automatically **Final repayment (April 20th)**: * You pay total: 10 WETH principal + 0.0931 WETH interest * **Interest breakdown**: * 0.0548 WETH: Repays what new lender fronted to original lender * 0.0383 WETH: New interest owed to new lender (10 days at 14%) * **Result**: Original lender gets 0.0548 WETH, new lender gets 0.0383 WETH + gets back their 0.0548 WETH advance # Renegotiations #### What is Renegotiation? **Renegotiation = Flexible Loan Changes (Borrower Approval Required)** Renegotiation lets any lender propose new terms for a borrower's existing loan - like extending the due date, changing the APR, or adjusting the principal. **Unlike refinancing, the borrower must approve** because terms might not always be better. #### Refinancing vs Renegotiation - Key Differences | Refinancing | Renegotiatio | | ------------------------------------------- | --------------------------------------- | | **Automatic** (no borrower approval needed) | Requires borrower approval | | **Only better terms** allowed | **Any terms** allowed (better or worse) | | **APR must improve** by 10%+ | APR can go up or down | | **Cannot shorten** due date | **Can extend or shorten** due date | | **Instant** when offered | **Borrower chooses** whether to accept | #### How Renegotiation Works 1. **Any lender** makes a renegotiation offer on a borrower's loan 2. **Borrower reviews** the proposed terms (could be better or worse) 3. **Borrower decides** whether to accept or decline 4. **If borrower accepts**: Borrower pays any required amounts upfront, terms change immediately 5. **Lock-ups reset**: New 15% refinancing restrictions based on new loan duration #### What Borrowers Pay When Accepting **Always pay**: * All accrued interest to date **Additional payments depend on principal change**: * **Principal decreases**: Borrower pays the difference * **Principal increases**: Borrower receives extra funds (minus accrued interest and any origination fee) * **Principal stays same**: Only pay accrued interest **Example**: * Current loan: 10 WETH principal, 0.5 WETH accrued interest * Renegotiation: 12 WETH principal, 0.2 WETH origination fee * Borrower receives: 2 WETH increase - 0.5 WETH interest - 0.2 WETH fee = 1.3 WETH #### Types of Renegotiation Offers 1. **Item-Specific**: New offers made specifically for the borrower's NFT 2. **Collection-Level**: Borrowers can accept any active collection offer as renegotiation terms #### Adding New Tranches **Any time during a loan**, lenders can offer additional junior tranches (Top Up) to increase the borrower's principal. This gives borrowers access to more funds if their NFT's value has increased. #### Common Renegotiation Scenarios * **Extending maturity**: Loan due soon, borrower wants more time (may pay higher APR) * **Increasing principal**: Borrower's NFT gained value, wants to borrow more # Sell & Repay Sell & Repay lets borrowers sell escrowed NFTs directly through GONDI. Sale proceeds automatically repay the outstanding loan, with any surplus transferred to the borrower's wallet. ### Selling Methods #### Fixed-Price Listing Set a price and list your escrowed NFT for sale. When a buyer purchases at your listed price, the loan is repaid and you receive the difference. * **Public listing** - Visible to all buyers * **Private listing** - Restricted to a specific wallet address * **Off- Market listings -** Set a private asking price for an escrowed NFT. #### Accepting Bids Buyers can place bids on any escrowed NFT. As the borrower, you can accept any bid that covers your outstanding debt (principal + accrued interest). * No minimum bid floor requirement * You can receive and compare multiple bids before accepting *** ### Cross Currency Bid Acceptance With the Cross Currency Purchase Bundler, you can accept bids denominated in a different currency than your loan. If your NFT is escrowed under an ETH loan and you receive a USDC bid, you can accept it — the contract automatically swaps the proceeds to your loan currency, repays the loan, and sends you the remainder. #### How It Works 1. Your escrowed NFT receives a bid in a different currency than your loan 2. You accept the bid 3. The contract sells the NFT and receives the bid currency 4. The proceeds are swapped to your loan currency via Uniswap 5. Your loan is repaid from the swapped proceeds 6. Any surplus is sent to your wallet #### Example: ETH Loan, USDC Bid You have a 5 WETH loan against your NFT. A buyer places a bid worth 15,000 USDC: 1. You accept the USDC bid 2. The contract receives 15,000 USDC from the buyer 3. It swaps enough USDC to cover your 5 WETH loan repayment (plus accrued interest) 4. The loan is repaid in WETH to the lender 5. Remaining USDC is sent to your wallet > Slippage protection is built in — the contract validates the swap against a price oracle to ensure fair conversion rates. #### Without a Loan Cross currency bid acceptance also works for NFTs not currently in a Gondi loan. You can accept a bid in any supported currency, and the contract handles the conversion for you. *** ### Requirements * Listing price must cover the outstanding principal plus interest accrued through the listing expiration date * Listing expiration must be set before the loan due date * Only fixed pricing is available — auctions are not supported * One active listing type per NFT at a time (either public or private, not both) * Off-Market listings used with Sell & Repay must satisfy the same required as other S\&R listings. *** ### Settlement When a sale completes: 1. Buyer pays the purchase price 2. Outstanding loan (principal + accrued interest) is repaid to the lender 3. Protocol fee is deducted (see [Protocol Fees](http://localhost:8080/gondi-v3/protocol-fees)) 4. Remaining surplus is sent to the borrower #### Example Your outstanding debt is 2.1 WETH (2 WETH principal + 0.1 WETH accrued interest). You list the NFT for 3 WETH: * Buyer pays: 3 WETH * Loan repayment: 2.1 WETH * S\&R fee (2%): 0.06 WETH * You receive: 0.84 WETH *** ### Key Details * Interest continues accruing during the listing period * Listings can be cancelled anytime before the sale completes * Vault NFTs are sold as complete units * CryptoPunks must be wrapped to list on GONDI # Purchase Bundler Purchase Bundler lets you buy an NFT by combining your own funds with an existing Gondi loan offer — all in a single transaction. The NFT goes into escrow, and you immediately become the borrower. *** #### How It Works 1. **Find an NFT** with an available Gondi loan offer 2. **Choose a loan offer** that suits your terms (principal, APR, duration) 3. **Execute the purchase** — the seller receives full payment, the NFT moves to escrow, and you become the borrower in one atomic transaction Your upfront payment covers the difference between the NFT price and the loan principal, plus any origination fee. *** #### Example A 10 ETH NFT has a 7 WETH loan offer with 0.20 WETH origination fee, 15% APR, and 90-day duration: * **Upfront payment**: 3.20 WETH (10 - 7 + 0.20 origination) * **Interest accrual**: \~0.26 WETH at loan term * **Repayment at maturity**: 7.26 WETH (principal + interest) You can exit your position anytime by repaying the loan or by selling the NFT through Sell & Repay — sale proceeds repay the loan, and any surplus goes to you. *** #### Requirements * **ETH or WETH** listings support only. USDC listings do not support Purchase Bundler. * A valid loan offer must exist for the NFT. * You must have enough funds to cover the upfront payment. *** ### Cross Currency & USDC Purchase Bundler The Cross Currency Purchase Bundler extends the standard Purchase Bundler to support multi-currency transactions. You can purchase an ETH-listed NFT using a USDC loan, or vice versa — the contract handles the currency conversion automatically in a single atomic transaction. #### How Cross Currency Works 1. **Find an NFT listing** in any supported currency (ETH, WETH, USDC, or others) 2. **Select a loan offer** — the loan can be denominated in a different currency than the listing 3. **Execute the purchase** — the contract swaps currencies via Uniswap, buys the NFT, and places it in escrow 4. **Repay in the loan currency** — your repayment obligation is in the currency of the loan, not the listing #### Example: Buying an ETH Listing with a USDC Loan An NFT is listed for 10 ETH on OpenSea. A lender has a 25,000 USDC loan offer available: 1. You initiate the purchase through the Cross Currency Purchase Bundler 2. The contract takes the 25,000 USDC loan principal and swaps it to ETH via Uniswap 3. The resulting ETH is used to purchase the NFT from the marketplace 4. The NFT moves to escrow, and you become the borrower 5. You repay the loan in USDC at maturity #### Key Benefits * **Currency flexibility** — Buy NFTs listed in any currency using loan offers in any other supported currency * **Atomic execution** — Currency swap, NFT purchase, and loan creation happen in one transaction * **Slippage protection** — Built-in price oracle validation ensures fair conversion rates * **Standard fees** — No additional fees for cross-currency conversion; standard Purchase Bundler fees apply #### Cross Currency Contract `0xc10472AC1BF9F2E58Ff2C83596b4535334c90814` *** ### Supported Marketplaces Purchase Bundler transactions are supported across the following platforms: * **GONDI** — Public and private listings * **OpenSea** — Public and private listings * **CryptoPunks** — Punks Marketplace * **Tokenworks** — NFT Strategy marketplace *** ### Requirements * A valid Gondi loan offer must exist for the NFT's collection * You must have sufficient funds for the upfront payment (listing price minus loan principal, plus origination fee) * Supported currencies: ETH, WETH, USDC (and other whitelisted ERC-20 tokens via Cross Currency) * Compatible with Gondi V3.1 escrow systems *** ### Fees The buyer pays a 2% Purchase Bundler fee on most transactions. See [Protocol Fees](http://localhost:8080/gondi-v3/protocol-fees) for the complete fee schedule by marketplace and listing type. #### # Liquidations, Buyouts & Auctions When a loan defaults (passes due date without repayment), the liquidation process depends on the number of tranches. #### Single Tranche Defaults **Simple Process**: The lender can claim the collateral directly through the GONDI dApp. * Requires a transaction to claim (not automatic) * Lender becomes the new owner of the NFT(s) * No additional steps or waiting periods #### Multi-Tranche Defaults Loans with multiple tranches follow a two-step liquidation process: **Step 1: Largest Lien Buyout (48 Hours)** **Who gets buyout rights**: The lender with the largest principal amount * If principal amounts are tied, the most senior tranche (ST = 0) gets priority * Only one lender gets buyout rights **Buyout process**: * 48-hour window starting immediately after default * Buyout lender must pay all other tranches their full outstanding debt (principal + accrued interest up to default date) * If exercised, buyout lender can claim the collateral immediately * If not exercised, proceeds to auction **Step 2: Liquidation Auction (72 Hours)** **When it starts**: Automatically after the 48-hour buyout period expires (if no buyout occurred) **Auction mechanics**: * 72-hour English auction * No starting bid minimum * Each bid must be 5% higher than the previous bid * Anyone can participate (including original lenders) * Bids placed with <10 minutes remaining extend auction by 10 minutes * Auction contract holds each bidder's funds until outbid or auction ends #### Distribution of Auction Proceeds **Waterfall Priority**: Senior tranches paid first, then junior tranches **Scenario 1 - Insufficient Proceeds**: If proceeds < total outstanding debt: * Senior tranches receive priority for principal + accrued interest * Junior tranches receive remaining funds (may be zero) **Scenario 2 - Sufficient Proceeds**: If proceeds ≥ total outstanding debt: * Each lender receives full amount owed (principal + accrued interest) * Any surplus distributed pro-rata based on outstanding debt amounts #### Important Notes * **No borrower action required**: Liquidation process is automatic after default * **No grace period**: Liquidation begins immediately when loan passes due date * **Lender participation**: All lenders can bid in auctions regardless of tranche position * **Interest calculations**: All accrued interest calculated up to default date, not liquidation completion # Vaults & Stash ### Vaults Vaults allow users to bundle multiple assets and borrow against them as a single loan. The vault itself becomes an NFT that represents ownership of the bundled assets. #### What Can Go in Vaults * **ERC-721 NFTs**: From any supported collection * **ERC-1155 tokens**: From supported collections (see appendix for list) * **ERC-20 tokens**: From supported collections (see appendix for list) * **Mixed combinations**: Any combination of the above token types #### Vault Requirements **ERC-1155 Support**: ERC-1155 tokens cannot be used as direct collateral and must be placed in vaults to receive loan offers. **Legacy SuperRare Support**: Old SuperRare ERC-721 tokens must be wrapped using GONDI's "Stash" wrapper before use in vaults or individual loans. #### Creating and Managing Vaults **Creation**: Anyone can mint a vault (requires gas fees) * Add desired assets during creation * No minimum or maximum asset limits * Vault becomes an NFT representing the bundle **Modification Restrictions**: Once created, vaults cannot be modified * Cannot add new assets to existing vaults * Cannot remove individual assets from vaults * To change contents: repay any loans, burn vault, withdraw assets, create new vault #### Vault Loans **Offer Process**: Lenders can see all assets within a vault when making offers * Only item-specific offers available for vaults * Collection offers do not apply to vaults * Borrowers receive offers based on the entire vault's value **Active Loan Restriction**: Vaults with active loans cannot be modified * Must repay loan in full before making any changes * Burning vault with active loan is not permitted #### Benefits of Vaults * **Higher borrowing limits**: Combined asset value may qualify for larger loans * **Better terms**: Bundled assets can attract more competitive offers * **Simplified management**: One loan instead of multiple individual loans * **Cost efficiency**: Fewer transactions and reduced gas fees * **Flexibility**: Support for multiple token standards in one bundle #### Technical Notes * Vault is an NFT that holds the bundled assets * Buyers/bidders can inspect vault contents before purchase * During liquidation, winners receive the vault NFT # Protocol Contracts ## Ethereum Contracts ### Multi Source Loan: Main contract of the protocol where loans are originated/refinanced/repaid. It also keeps collateral in escrow. * **V3.1:** * **V3.0:** * **V2**: * **V1:**[ ](https://etherscan.io/address/0xca5a494ca20483e21ec1e41fe1d9461da77595bd) ### Currency Manager: Manager of ERC-20 tokens supported by GONDI. * **V1, V2, & V3:** ### **Marketplace Manager:** * **V3:** ### **Purchase Bundler (Sell & Repay):** * **V3.1**: * **V3.0:** * **V2:** ### **Price Quoter Whitelist:** * ### **Uniswap Price Quoter V2:** * ### **Liquidation:** Liquidation contract including buyout and auction. * **V3:**[ ](https://etherscan.io/address/0xf65b99ce6dc5f6c556172bcc0ff27d3665a7d9a8) * **V2:** * **V1:** [ ](https://etherscan.io/address/0x237e4421c742d843fdd96d22294d338507e17091) ### **User Vaults Factory:** * **V3:** * **V2:** ### **Range Validator:** Validates collection offers across a range of token IDs enabling collection offers for specific Artblocks Curated collections like Fidenzas, Chromie Squiggles, and more. Used for V1, V2, and V3. * **V3:** * **V2:** * **V1:** ### **Collection Manager:** Manager of whitelisted collections supported by GONDI across all versions. ### V3 Contracts: ### **Stash (SuperRare wrapper):** (Active for new loans starting 12/05/2024) (Will be sunset after loans using this wrapper are repaid). ### **Migration Manager:** Allows to move loans in old escrow contracts to latest escrow contract via flash loan. ## HypeEVM Contracts ### Multi Source Loan: * **V3.1:** [**https://hyperevmscan.io/address/0x6ad675624ec8320e5806858cd5db101a0b927fd9**](https://hyperevmscan.io/address/0x6ad675624ec8320e5806858cd5db101a0b927fd9#code) * **Purchase Bundler:** * **MultiAddressValidator** : [0x7d60c8350267ff6d42741177056051d897cbb40e](https://hyperevmscan.io/address/0x7d60c8350267ff6d42741177056051d897cbb40e#code) * **RangeValidator** : [0x7545487a4749ab4a7c16f9185d574d5668220048](https://hyperevmscan.io/address/0x7545487a4749ab4a7c16f9185d574d5668220048#code) * **AuctionWithBuyoutLoanLiquidator :** [0xb166ec953fef89c6ee2e39e60fbd49b19cf4c6ad](https://hyperevmscan.io/address/0xb166ec953fef89c6ee2e39e60fbd49b19cf4c6ad#code) # ERC-721C Whitelisting ERC-721C collections enforce creator royalties by restricting which contracts can move their tokens. For an ERC-721C collection to work on GONDI, the collection owner must whitelist the GONDI contracts that touch the NFT during the loan lifecycle. Transfers from non-whitelisted contracts are rejected onchain. ### Contracts To Whitelist Every ERC-721C collection that wants full GONDI support needs to whitelist all five contracts below. Partial whitelisting is possible, but flows that rely on a non-whitelisted contract will revert. * **MultiSourceLoan 3.1:** `0xf41B389E0C1950dc0B16C9498eaE77131CC08A56` — starting and repaying loans * **MultiSourceLoan 3.0:** `0xf65b99ce6dc5f6c556172bcc0ff27d3665a7d9a8` — repaying legacy 3.0 loans * **PurchaseBundler 3.1 (cross-currency):** `0xe02d85e80c1ebda5aa43b8a1996332a83f855a59` — buy-with-loan and sell-and-repay * **Seaport 1.6:** `0x0000000000000068f116a894984e2db1123eb395` — sales, buy-with-loan, and sell-and-repay * **Vault:** `0x823dE2c44369e94CAc3DA789Ad4b6493e27e4Bfe` — creating vaults that bundle multiple NFTs into one loan Note: Addresses are Ethereum mainnet. New GONDI versions may require whitelisting additional addresses. ### Applying the Whitelist Exact steps depend on the transfer validator your collection uses (for example, Limit Break's Creator Token Transfer Validator). * Open the transfer validator contract used by your collection * Add each of the five addresses above to your collection's operator allowlist * Confirm the collection's security level consults the operator allowlist ### Verifying * Read the operator allowlist and confirm all five addresses are present * Take out and repay a small loan, and run a buy-with-loan and sell-and-repay if applicable — any revert usually means a missing whitelist entry # Protocol Fees GONDI charges fees on specific protocol operations. Below is the complete fee schedule, organized by transaction type. *** ### Lender Fees | Fee Type | Rate | | --------------------------------- | ---- | | Protocol fee on realized interest | 15% | | Protocol fee on origination fees | 15% | Protocol fees are charged on realized interest and origination fees — not on the loan principal itself. If a loan defaults, only origination fees are charged. > Effective starting October 24th, 2025. *** ### Regular Sales Fees applied when an NFT is sold on GONDI without any loan involvement.
OperationSeller FeeBuyer Fee
Public listing0.5%0%
Public bid0%0.5%
Private Listing0%0%
Stealth Bid0.5%0.5%
CryptoPunks sale (no loan)0%0%
Off-Market2%0%
CryptoPunks must be wrapped to trade on GONDI. Regular CryptoPunks sales carry zero fees on both sides to honor the CryptoPunks marketplace tradition. *** ### Sell & Repay Fees applied when a borrower sells an escrowed NFT to repay an outstanding loan. The sell fee is deducted from the seller's proceeds before loan repayment. | Operation | Seller Fee | Buyer Fee | | ------------------ | ---------- | --------- | | Public listing | 2% | 0% | | Public bid | 1.5% | 0.5% | | Private listing | 2% | 0% | | Stealth Bid | 2% | 0.5% | | Off-Market Listing | 2.5% | 0% | *** ### Purchase Bundler Fees applied when a buyer acquires an NFT using a Gondi loan through the Purchase Bundler.
OperationSeller FeeBuyer Fee
GONDI public listing0.5%2%
GONDI private listing0%2%
Sell & Repay listing2%0%
CryptoPunks (Punks Marketplace)0%2%
OpenSea public or private listing1% (Opensea Fee) 2%
Tokenworks listing0%2%
When buying via Purchase Bundler on a GONDI public listing, the 0.5% seller fee is the standard public sale fee. The 2% buyer fee is the Purchase Bundler fee. When buying from a Sell & Repay listing, the borrower-seller pays the 2% S\&R fee and the buyer pays no additional Purchase Bundler fee. *** ### Auction Liquidation | Fee Type | Rate | | ----------------------- | ---- | | Auction liquidation fee | 0% | No protocol fees are charged on auction liquidations. *** ### Fee Summary * **Borrowers** pay no protocol fees on loan origination or interest * **Lenders** pay 15% on realized interest and origination fees * **Sellers** pay 0.5% on public sales (no loan), 2% on Sell & Repay transactions * **Buyers** pay 2% when using the Purchase Bundler to acquire an NFT with a loan * **Private sales** between known parties carry no fees (except when involving a loan) * **CryptoPunks** regular sales carry zero fees; loan-related transactions follow standard loan fees *Updated on February 24th, 2026* # Whitelisted Collections Last Update: February 26, 2026 **Total Collections: 257** | Collection | | ---------------------------------------------------------------------------- | | 100 Sunsets by Zach Lieberman | | 12 Ugly Ducks | | 1712 FX06 | | 6529 Gradient | | ACK EDITIONS | | ACK Unique Editions / 1 of 1's | | ACK Unique Editions / 1 of 1's | | ACKFTW | | ACKPFP | | ADEM & EVE | | AI Imagined Faces : On-Chain by Van Arman | | Algorithmic Evolution | | alignDRAW | | Anticyclone by William Mapan | | Archetype by Kjetil Golid | | Artists Deserve More | | Artworks by Emily Xie | | Async Art | | Auntieverse by Niceaunties | | Autoglyphs | | Azuki | | Azuki Elemental Beans | | Azuki Elementals | | BEANZ Official | | beef brothko | | BEEPLE - GENESIS COLLECTION | | BEEPLE - SPRING/SUMMER COLLECTION 2021 | | BEEPLE - THE 5000 DAYS COLLECTION | | BEEPLE: EVERYDAYS | | BEEPLE: EVERYDAYS - THE 2020 COLLECTION | | BEEPLE: EVERYDAYS - THE 2020 COLLECTION Open Edition | | BEEPLE: UNCERTAIN FUTURE | | Bit Bears by Berachain | | Bored Ape Yacht Club | | Botto - 2024 | | Botto - 2025 | | BURNER | | byteGANs | | Cargo by Kim Asendorf | | Cath Simard 1/1s | | CENTURY by Casey REAS | | Chancellor On the Brink of Second Bailout for Banks | | Checks | | Checks - VV Elements | | Checks - VV Originals | | Chimpers | | Chimpers \[Legacy] | | Chromie Squiggle by Snowfro | | CHRONOPHOTOGRAPH by 0xDEAFBEEF | | CLONE X - X TAKASHI MURAKAMI | | COLOR WITCH | | Construction Token by Jeff Davis | | Cool Cats NFT | | Counterparty | | Cracked | | Creepz Genesis | | CrypToadz by GREMPLIN | | CryptoDickbutts | | CryptoDickbutts OG | | CryptoPunks | | CryptoPunks V1 (wrapped) | | CryptoSkulls | | CyberKongz | | CyberKongz (Babies) | | Cyborg DAO | | DAMAGE CONTROL | | Damien Hirst - The Currency | | DATALAND — BIOME LUMINA | | Deafbeef | | Death Wannabe | | Decal by XCOPY | | Decoherence by Van Arman | | DEEKAY 1/1 | | DeepBlack | | diewithethemostlikes ponderosa meat managers | | Dirtbag | | Disaster Suit | | DISRUPTOR by XCOPY | | Doodles | | Etheria v0.9 | | Etheria v1.0 | | Ethos Validators | | EVERYDAY ARTIFACTS | | everything vs nothing | | exist to submit | | Fabrica Land | | Fidenza by Tyler Hobbs | | Filigree - Digital Edition by Matt DesLauriers | | FOLIO by Matt DesLauriers | | Fontana by Harvey Rayner / patterndotco | | Forgotten Runes Wizards Cult | | Foundation (FND) | | Fragmentation Period | | FRESH HELL | | Frieder Nake: HOMAGE TO GERHARD RICHTER | | Funkari | | Gazers by Matt Kane | | Genesis by Claire Silver | | GeoMetric Pepes | | goblintown.wtf | | Gondi User Vault | | Gondi User Vault (V2) | | Good Vibes Club | | Grant Riven Yun Early Works | | Grant Yun 2 | | Grant Yun x Avant Arte x En Route | | Grant Yun x Avant Arte x Fall | | GRIFT SZN | | Grifters by XCOPY | | heart you by a.c.k. | | Her favorite flowers | | Honey Badger I | | HV-MTL | | Hypurr | | ICXN | | IKB Cachet de Garantie | | Incomplete Control by Tyler Hobbs | | Interwoven by Emily Xie | | Invisible Friends | | Jordan Vs. Iverson X-ray No.1 | | Justin Aversano - Twin Flames | | Kaito Genesis | | Kanpai Pandas | | KILLABEARS | | Kingdoms of Ethiopia V2 | | KnownOrigin | | KnownOrigin (ABB3) | | Kolectiv | | Latent Ink by Eko33 | | Legalize Ground Beef | | Life In Japan Editions by Grant Yun | | Life In West America by Roope Rainisto | | LIFT (a self portrait) by Snowfro | | Light Years by Dmitri Cherniak | | Lil Pudgys | | Lovely Family | | Machine Hallucinations by Refik Anadol | | MAX PAIN AND FRENS DRAWING BY XCOPY | | MAX PAIN AND FRENS OPEN EDITION BURNS BY XCOPY | | MAX PAIN AND FRENS OPEN EDITION BY XCOPY | | MAX PAIN AND FRENS RANKED AUCTIONS BY XCOPY | | Meebits | | Meme Lab by 6529 | | Memeland Captainz | | Memeland MVP | | Memeland Potatoz | | Memories of Qilin by Emily Xie | | Meridian by Matt DesLauriers | | mfers | | Milady Maker | | Mintify Genesis | | Mocaverse | | Moonbirds | | MoonCats | | Mutant Ape Yacht Club | | Mutant Garden Seeder | | My Head In Your Hands by FEWOCiOUS x Two Feet | | My Head In Your Hands by FEWOCiOUS x Two Feet (80a5) | | Nakamigos | | nameless dread by diewiththemostlikes | | Neo Tokyo Citizens | | NextGen 6529 / Pebbles by Zeblocks | | NGMI by XCOPY | | NimBuds by Bryan Brinkman | | Nouns | | Nyan Cat (Official) | | objective theory | | Off Script by Emily Xie | | Opepen | | Otherdeed Expanded | | Otherside Koda | | Peace Offering | | PEGZ | | Pirate Nation - Founder's Pirates | | podGANs by Pindar Van Arman | | Point VV | | Pre-Process by Casey REAS | | Primera by Mitchell and Yun | | Process Compendium by Casey REAS | | Project AEON | | Pudgy Penguins | | Pudgy Rods | | PXL DEX | | QQL | | Quantum Portraits | | Quine by Larva Labs | | Quirkies Originals | | Rainbow Grid by Kim Asendorf | | Rare Pepe (2016 - 2018) | | Rarible | | Rebellion | | Redacted Remilio Babies | | Reflection by Pindar Van Arman | | REGULAR ANIMALS | | rektguy | | Ringers by Dmitri Cherniak | | Rug Radio - Genesis NFT | | SABOTAGE by Kim Asendorf | | Sam Spratt - LUCI: Chapter 5 - The Monument Game | | Sam Spratt - Masks of Luci | | Sappy Seals | | Select Works by XCOPY | | Select Works Open Edition by XCOPY | | servants of the Muse | | shiddy beanz | | Signature by Jack Butcher | | Singularity by Hideki Tsukamoto | | Sketchbook A by William Mapan | | Skulls of Luci | | Space Doodles | | SPACES by Grant Yun | | Spells of Genesis (2015 - 2019) | | Sproto Gremlins | | Strands of Solitude by William Mapan | | strip mall salvation | | Subscapes by Matt DesLauriers | | SuperRare | | SuperRare (V1) | | Synthetic Dreams by Refik Anadol | | Terraforms by Mathcastles | | The Band Bears | | The Broken Keys | | The Del Mundos | | The Door by Matt Kane | | The Eternal Pump by Dmitri Cherniak | | The First Sparks of Artificial Creativity | | The Flowers Project | | The Great Color Study | | The Harvest by Per Kristian Stoveland | | The Memes by 6529 | | The Nine | | The Wrapture by Dmitri Cherniak | | Themes and Variations by Vera Molnar | | TRAITORS by XCOPY | | TRAITORS open edition by XCOPY | | Tyler Hobbs | | uneasy dream by Manolo Gamboa Naon | | Unigrids by Zeblocks | | Unscratched Lost Robbies | | Unsupervised - Machine Hallucinations - MoMA Dreams by Refik Anadol | | Unsupervised - Burned - Machine Hallucinations - MoMA Dreams by Refik Anadol | | VeeFriends | | Views by DeltaSauce | | Visions | | Wabi-Sabi Syntax by Ilan Derech | | Warhol | | Warothys | | Wealthy Hypio Babies | | Where My Vans Go | | Winds of Yawanawa by Yawanawa and Refik Anadol | | World of Women | | Worthless Redux | | Wrapped Ether Rock | | X0X | | XCOPY x CoinDesk Most Influential | | RΞMNANTS by XCOPY | | ₥є₥єภ†๏ร | # Security & Audits ### GONDI Cross Currency Audits: * Zenith - Cross Currency ### GONDI V3.0 Audits: * Zenith 3.1 * Halborn * Zenith (fka Code4Arena) * 0xQuit * Qckhp ### GONDI V2 Audits: * Quanstamp * 0xFoobar * 0xQuit ### Sell & Repay Audit: * Code4Arena ### GONDI V1 Audits: * Trail of Bits * CertiK ### Reporting Bugs & Exploits If you believe to have found an exploit, no matter how small, please contact us on [Discord](https://discord.gg/HJc7zpTT) by creating a private ticket. Security is our top priority and we will reward all users who find bugs according to the severity of the finding. ### GONDI Cross Currency Audit: {% file src="/files/XCkXIvDU3sNVQSTuzmBW" %} ### GONDI V3.0 & V3.1 Audits: All our deployed contracts have been audited by: Zenith (fka Code4Arena), Halborn, 0xQuit, and Qckhp. **Zenith V3.1:** \ [**https://github.com/zenith-security/reports/blob/main/reports/Gondi%20-%20Zenith%20Audit%20Report.pdf**](https://github.com/zenith-security/reports/blob/main/reports/Gondi%20-%20Zenith%20Audit%20Report.pdf) \ \ **Zenith v3.1 Migration Manager:** {% embed url="" %} \ **Code4Arena V3.0:** [**https://gist.github.com/liveactionllama/5afa2cb883f9e5b7e44ae4c7852489f8**](https://gist.github.com/liveactionllama/5afa2cb883f9e5b7e44ae4c7852489f8) **Halborn:** {% embed url="" %} {% embed url="" %} {% embed url="" %} ### GONDI V2 Audits: All our deployed contracts have been audited by: Quantstamp, 0xFoobar & 0xQuit. {% embed url="" %} Quantstamp Audit GONDI V2 {% endembed %} {% embed url="" %} {% embed url="" %} ### Sell & Repay Audit {% embed url="" %} ### GONDI V1 Audits: All our deployed contracts have been audited by Trail of Bits and CertiK {% embed url="" %} {% embed url="" %} # Glossary This glossary defines key terms used in GONDI's dApp. **Accrued Interest** The loan interest amount accumulated over time but not yet paid. **Accrued Interest Profit** The interest amount accrued by the lender currently holding the loan. **APR (Annual Percentage Rate)** The annualized cost of borrowing, expressed as a percentage. **Buyout Period** 48-hour window after loan default during which the lender with the largest principal can purchase other tranches in a multi-tranche loan. **Collection Offer** A loan offer applicable to any NFT within a specified collection. **Due Date (Maturity Date)** The date by which the borrower must repay the loan's principal and accrued interest to avoid default. **Effective APR (eAPR)** The true loan cost including origination fees, calculated annually: * **Borrower eAPR:** \[Accrued Interest + Origination Fee / Principal] × \[365/Duration] * **Lender eAPR:** \[Accrued Interest Profit + Origination Fee / Principal + Previous Interest] × \[365/Duration] **Gross APR** \[Sum of 1 Year Accrued Interest] / \[Principal Amount] **Interest** The cost that accrues over time for borrowing, calculated based on APR, principal, and loan outstanding time. **Interest Cost** The sum of outstanding interest and accrued interest from previous refinancings that new lenders must pay. **Junior Tranche** Higher risk position in multi-tranche loans, repaid after senior tranches during liquidation. **Liquidation** Process of selling defaulted loan collateral through buyout period or auction, with proceeds distributed by seniority. **Loan Default** When a borrower fails to repay the loan plus accrued interest by the due date. **Loan Duration** The period during which the borrower must repay the loan in full, including accrued interest—usually expressed in days. **Loan Offer** A proposal extended by a lender outlining loan terms, including principal, APR, due date, Senior Tolerance, and optional origination fee. **Offer Capacity** The total amount a lender is willing to allocate across all loans for a collection offer. **Origination Fee** An optional one-time fee (WETH or USDC) paid by the borrower to the lender at loan origination or renegotiation. Deducted from the principal amount. **Previous Interest** The interest amount accrued by previous lenders that new lenders must transfer during refinancing. **Principal** The amount of WETH or USDC borrowed/lent. **Refinancing** Transaction where a new lender provides better terms (minimum 10% APR improvement) to take over an existing loan. No borrower approval required. **Renegotiation** Transaction where a lender proposes different loan terms that may not be strictly better. Requires borrower acceptance. **Repayment Amount** The total amount to be repaid by the borrower, including principal and accrued interest. **Sell & Repay** Feature allowing borrowers to list escrowed NFTs for sale with automatic loan repayment from proceeds. **Senior Tolerance (ST)** The maximum debt amount (principal + interest) that can be senior to an offer when loans are combined. **Senior Tranche** Lower risk position in multi-tranche loans, has repayment priority during liquidation. **Tranche** Individual portion of a multi-lender loan with specific terms and seniority level. **Vault** NFT that bundles multiple assets (ERC-721, ERC-1155, ERC-20) for use as collateral in a single loan. # Protocol Disclosures GONDI is an open lending, borrowing, and decentralized finance protocol (“Protocol”) built on Ethereum. The Protocol allows Gondi users to lend and borrow certain crypto assets, including non-fungible tokens. The Protocol does not guarantee any profitability by borrowing or lending any crypto assets as applicable. Your use of the Protocol is entirely at your own risk. The Protocol is available on an “as is” basis without warranties of any kind, either express or implied, including, but not limited to, warranties of merchantability, title, fitness for a particular purpose and non-infringement. Terminology. When used in the context of describing the Protocol, the terms “debt,” “lend,” “refinance, “collateral”, “credit,” “leverage,” “bank”, “borrow”, “yield”, “invest” and/or other similar terms are not meant to be interpreted pursuant to the customary legal meaning of those terms or to those terms as defined in any body of commercial law. Rather, such terms are being used to draw rough analogies between the heavily automated and mostly deterministic operations of a decentralized-finance ("DeFi”) smart contract system and the discretionary performance of traditional-finance transactions between individuals (“TradFi”). For example, “debt” ordinarily means a legally enforceable promise from a debtor to a creditor to pay an interest rate and eventually repay the principal. Therefore, “debt” cannot exist without legal agreements and cannot be enforced without courts of law. By contrast, with the Protocol, there are no legal agreements, promises of payment or courts of law, and therefore there are no debts, loans or other traditional finance transactions involved. Instead, the Protocol consists of software (including embedded game-theoretic incentives and assumptions) through which parties can share their digital assets with other parties or smart contract systems and, under normal and expected conditions, including economic and other assumptions regarding market and market participant behaviors, *are expected to* get their digital assets returned, plus extra digital assets, most of the time or in most cases*.* Unlike in traditional lending, the “lender’s” financial return does not depend primarily on the creditworthiness, solvency or financial skill of the “borrower” or on legal mechanisms such as the perfection of liens or the priority of creditor claims in a bankruptcy - it depends primarily on the incentive model assumed by the software design and how reliably the software implements that model. Unlike a debtor, people who “borrow” digital assets from the Protocol smart contract system are not required to and have not promised to pay the digital assets back; if the “borrowers” never pay the digital assets back, no promise has been broken, no legal agreement has been breached and the digital asset “lenders” cannot sue the “borrowers” to get their digital assets back. Instead, by not repaying the borrowed digital assets, the digital asset “borrowers” merely demonstrate either that they lacked sufficient incentive to want to do so -- for example, because their smart-contract-bound “collateral” was worth much less than the “borrowed” digital assets -- or that a technical issue -- such as congestion of the settlement network (e.g., Ethereum) -- prevented them from doing so. Regardless, the “borrowers” do not have a legal obligation to repay digital assets when they do not want to or cannot do so, and there is no legal remedy for damaged “lenders” when insufficient incentives or technical problems result in a digital asset shortfall. DeFi Risk. Thus, the transactions you can effect through the Protocol and its decentralized finance systems, while superficially similar to traditional financial transactions in some ways, are in fact very different. DeFi and TradFi each have unique costs and benefits, risks and protection mechanisms. Please bear this fact in mind when interacting with the Protocol, and do not use the Protocol without a sufficient understanding of their unique risks and how they differ from traditional financial transactions. The only way to fully understand such risks is to have a strong understanding of the relevant technical systems and the incentive design mechanisms they embody—it is strongly encouraged that you to review the Protocol’s technical documentation and code \[2] before use. Assumption of Risk. You assume all risks associated with using or interacting with the Protocol, and digital assets and decentralized systems generally, including but not limited to, that: (a) digital assets are highly volatile; (b) using digital assets is inherently risky due to both features of such assets and the potential unauthorized acts of third parties; (c) you may not have ready access to digital assets; and (d) you may lose some or all of your tokens or other digital assets. You agree that you will have no recourse against anyone else for any losses due to the use of or interaction with the Protocol. For example, these losses may arise from or relate to: (i) incorrect information; (ii) software or network failures; (iii) corrupted digital wallet files; (iv) unauthorized access; (v) errors, mistakes, or inaccuracies; or (vi) third-party activities. # Official Links Thanks for browsing GONDI's docs. If you have questions, please visit GONDI's community Discord server to speak with the community, development, and partnership teams. {% hint style="info" %} **Stay Safe!** Be aware of impersonators. Always verify URLs before connecting your wallet. {% endhint %} ## GONDI Official Links: * **GONDI dApp:**[ https://www.gondi.xyz](https://www.gondi.xyz) * **X (Twitter):** * **Discord:** [https://discord.gg/gondi](http://discord.gg/gondi) * **Docs:** [https://docs.gondi.xyz](https://docs.gondi.xyz/) # How to Make a Loan Offer A loan offer is a proposal extended by a lender outlining loan terms, including principal, APR, due date, and optional origination fee. Learn how to submit a loan offer on GONDI V3. Every loan originated at GONDI requires a borrower to accept a lender's offer. For more details on what loan offers are, visit [Loan Offers](/gondi-v3/loan-offers). ### **Loan Offer Options** GONDI offers lenders two ways to submit a loan offer: 1. **Standard Loan Offers:** Offers made to a specific NFT (or a vault with multiple NFTs) listed on GONDI. [Go to section](/learn/how-to-make-a-loan-offer/standard-loan-offers) 2. **Collection Loan Offers:** Offers targeting [whitelisted collections](/gondi-v3/whitelisted-collections) that borrowers can accept at any time using an NFT from that collection as collateral. [Go to section](/learn/how-to-make-a-loan-offer/collection-loan-offers) Let’s begin with standard loan offers in the next section. # Standard Loan Offers Learn how to submit a standard loan offer as a lender on GONDI V3. Standard loan offers are proposals from lenders to borrowers who have listed an NFT, indicating they seek loans against it. Each offer details the terms, including the principal, APR, due date, and optional origination fee. For more information on how these work, visit [Loan Offers](/gondi-v3/loan-offers) ### **Step 1: Find Listed Items** Navigate to the [Make Offers](https://www.gondi.xyz/make-offers#listings) page and select the ‘Listings’ tab to see all NFTs seeking loan offers.
### **Step 2: Use Filters to Find Items** When borrowers list an item seeking a loan, they can optionally specify their desired terms, such as currency and loan duration. These details are visible in each item listing and on the offer page. * **Currency (WETH or USDC):** Choose the asset used for the principal. * **Collections:** View all loans or select a specific collection.
### **Step 3: Select an Item** Click the 'Make Offer' button next to the desired loan to enter the Offer page. {% hint style="info" %} For more details on the item, click the white arrow to open its profile page. Here, you'll find past activity and other information. You can also start a loan offer from the profile page. {% endhint %} ### Step 4: Connect Your Wallet If not already connected, you'll be prompted to connect your wallet. {% hint style="warning" %} Ensure you are navigating on for security. {% endhint %} ### **Step 5: Define Your Loan Offer** When listing an item, borrowers can signal their currency and duration preferences. Lenders can submit offers with different terms, but offers that match the borrower's preferences have a higher chance of acceptance.
* **Currency:** The asset you offer (WETH or USDC). * **Expiration Date:** Set a timeframe for your offer's validity. At least three days is recommended. * **Principal:** Enter the loan amount you want to lend. * **APR:** Select your desired interest rate. * **Duration:** Set the repayment deadline. * **Origination Fee (optional):** Optionally include an origination fee (up to 10% of the principal, typically not exceeding 2%). * **Effective APR:** Shows the loan’s final APR, including the origination fee. * **Max Accrued Interest:** The maximum interest the lender will receive if the borrower repays just before the due date. With GONDI’s pro-rata system, if the borrower pays back earlier, the APR will be lower. ### **Step 6: Make the Offer** When ready, click 'Make Offer'. Review the terms, then sign the approval transaction with your wallet (you’ll need a small amount of gas). {% hint style="success" %} You can make loan offers without having enough balance in your wallet, but the offer will only be visible to the borrower once your wallet has sufficient funds. {% endhint %} ### **Step 7: Wait for Borrower** Once you submit a loan offer, the borrower should review it and respond within the specified timeframe. If you submit it in your GONDI profile, you’ll be notified of their decision by email or through the GONDI notifications page. {% hint style="info" %} Lenders can submit multiple offers with different terms for the same item to increase the likelihood of the borrower finding one attractive and accepting it. {% endhint %} *** These steps should help you effectively submit a loan offer. Feel free to ask in [GONDI’s Discord](http://discord.gg/gondi) if you need further assistance. # Collection Loan Offers Learn how to submit collection-wide loan offers as a lender on GONDI V3. Collection loan offers target [whitelisted collections](/gondi-v3/whitelisted-collections) rather than specific NFT listings. Borrowers can accept these offers anytime using an NFT from the specified collection as collateral. For more information on how loan offers work, visit [Loan Offers](/gondi-v3/loan-offers). ### **Step 1: Find a Collection** Navigate to the [Make Offers](https://www.gondi.xyz/make-offers#listings) page and select the ‘Collections’ tab to see all the whitelisted collections at GONDI that you can make offers to.
### **Step 2: Select a Collection** Click the 'Make Offer' button next to the desired collection to open the offers panel.
{% hint style="info" %} For more details on the item, click the white arrow to open its profile page. Here, you'll find past activity and other information. You can also start a loan offer from the profile page. {% endhint %} ### Step 3: Connect Your Wallet If not already connected, you'll be prompted to connect your wallet. {% hint style="warning" %} Ensure you are navigating on for security. {% endhint %} ### **Step 4: Define Your Loan Offer** When listing an item, borrowers can signal their currency and duration preferences. Lenders can submit offers with different terms, but offers that match the borrower's preferences have a higher chance of acceptance.
* **Currency:** The asset you offer (WETH or USDC). * **Expiration Date:** Set a timeframe for your offer's validity. At least three days is recommended. * **Total capacity:** The maximum amount of capital you're willing to lend to the collection. * **Max. Principal:** Enter the max. amount you're open to lending to individual loans. * **Origination Fee (optional):** An origination fee (up to 10% of the principal, typically not exceeding 2%) can be optionally included. * **APR:** Select your desired interest rate. * **Duration:** Set the deadline by which the borrower must repay the principal and interest. * **Min. Number of Loans:** The total capacity can be distributed among at least this number of loans. * **Effective APR:** Shows the loan’s final APR, including the origination fee. ### **Step 5: Make the Offer** When ready, click 'Make Collection Offer'. Review the terms, then sign the approval transaction with your wallet (you’ll need a small amount of gas). {% hint style="success" %} You can make loan offers without having enough balance in your wallet, but the offer will only be visible to borrowers once your wallet has sufficient funds. {% endhint %} ### **Step 6: Wait for Borrowers to Accept** Once you submit a collection loan offer, GONDI users can view your offer on the offers page of each collection. Holders of NFTs from those collections seeking loans on GONDI can instantly accept an offer within the offer's specified timeframe. You’ll be notified of their decision by email or through the GONDI notifications page. {% hint style="info" %} Lenders can submit multiple offers with different terms for the same collection to increase the likelihood of borrowers finding one attractive and accepting it. {% endhint %} *** These steps should help you effectively submit a collection loan offer. Feel free to holler in [GONDI’s Discord](http://discord.gg/gondi) if you need further assistance. # How to Refinance a Loan A guide to refinancing outstanding loans on GONDI. ### What is Refinancing? In GONDI, refinancing allows a lender to take over an existing loan by reducing its APR by at least 5%. This improvement in loan terms is instant and does not require borrower acceptance, as it always results in a better loan. For a deep dive into Refinancing, [visit this link](/gondi-v3/refinancing). ### Refinance Methods GONDI offers three methods for refinancing a loan: * **Full Loan:** Refinance the entire loan, becoming the sole lender. [Go to section](/learn/how-to-refinance-a-loan/full-loan-refinancing) * **Partial (tranche):** Refinance a portion of the loan. [Go to section](/learn/how-to-refinance-a-loan/partial-tranche-refinancing) * **Trim the Top:** Set your risk preferences and refinance multiple loans simultaneously. [Go to section](/learn/how-to-refinance-a-loan/trim-the-top-refinancing) Let's start with Full Loan refinancing in the next section. # Full Loan Refinancing Full loan refinancing allows lenders to refinance an entire loan by improving the APR. Here's a guide on how to fully refinance single loans on GONDI. ### **Step 1:** Open the [Refinance Loans](https://www.gondi.xyz/refinance/loans#single) Page Navigate to the 'Single' tab to see a list of all the outstanding loans available for refinancing.
### Step 2: Use Filters to Find the Right Loan Use the filters to finesse your search and find the opportunity you want. * **Asset (WETH or USDC):** Choose the asset used for the principal. * **Collections:** View all loans or select a specific collection. * **Min APR:** Filter out loans with an APR lower than your selected rate. * **Days left:** Use the slider to filter loans by the remaining duration. ### Step 3: Select a Loan Click on the 'Refinance' button next to the desired loan to open its refinance panel. For more details, click the white arrow to open the loan's profile page. Here, you'll find past activity and other information, and you can also start the renegotiation process.
### Step 4: Connect Your Wallet If not already connected, you'll be prompted to connect your wallet. {% hint style="warning" %} Ensure you are navigating on for security. {% endhint %} ### **Step 5:** Select the 'Full Loan' Tab
### **Step 6: Lower the APR (Required)** Move the slider to reduce the APR to your preferred rate. All loan refinancing requires an APR decrease of at least 5%.
### Step 7: Increase Principal (Optional) If desired, increase the principal amount. The new daily interest the borrower pays must exhibit a net reduction.
{% hint style="info" %} The minimum required improvement for the principal amount is 5%. {% endhint %} ### Step 8: Extend the Due Date (Optional) Optionally, extend the due date by selecting a date on the calendar or moving the slider. The minimum principal improvement required is 10% of the remaining loan duration.
{% hint style="info" %} Refinancing does not allow shortening a loan's due date. {% endhint %} ### Step 9: Review and Confirm Review all the terms carefully before confirming the transaction.
#### Key terms include: 1. **New Principal:** The amount of WETH or USDC being lent or borrowed. 2. **New APR:** The updated annual percentage rate—representing the loan's annualized yield. 3. **New Daily Interest:** The updated daily cost for the borrower. 4. **New Due Date (maturity):** The final date the borrower must repay to avoid default. 5. **Exp. Interest Left:** The expected interest the borrower should pay. 6. **Accrued interest:** The existing lender's accrued interest, which must be paid upfront by new lenders. Note: This isn't a cost as the borrower will repay it along with the interest and it won't reduce the 'Exp. Interest Left.' After reviewing, click 'Refinance' and sign with your wallet to confirm the transaction. {% hint style="info" %} Once refinanced, the loan enters a lockout period lasting 5% of the remaining loan duration. During this time, the loan cannot be refinanced by anyone else, providing a brief window of exclusivity to the refinancer. {% endhint %} *** These steps should guide you through the process of refinancing a single loan effectively. If you need further clarification or assistance, feel free to ask in [GONDI’s Discord](http://discord.gg/gondi). # Partial (Tranche) Refinancing Partial refinancing allows lenders to take over a portion of a loan by offering a better APR. Here's how to partially refinance loans on GONDI. ### Step 1: Visit the Refinance Loans Page Open the [Refinance Loans](https://www.gondi.xyz/refinance/loans#single) page. Navigate to the 'Single' tab to see a list of all the outstanding loans available for refinancing.
### Step 2: Use Filters to Find the Right Loan Use the filters to finesse your search and find the opportunity you want. * **Asset (WETH or USDC):** Choose the asset used for the principal. * **Collections:** View all loans or select a specific collection. * **Min APR:** Filter out loans with an APR lower than your selected rate. * **Days left:** Use the slider to filter loans by the remaining duration. ### Step 3: Select a Loan Click on the 'Refinance' button next to the desired loan to open its refinance panel.
{% hint style="info" %} For more details, click the white arrow to open the loan's profile page. Here, you'll find past activity and other information. You can also start the refinance process there. {% endhint %} ### Step 4: Connect Your Wallet If not already connected, you'll be prompted to connect your wallet. {% hint style="warning" %} Ensure you are navigating on for security. {% endhint %} ### Step 5: Select the 'Tranche' Tab
### Step 6: Choose Tranche Move the slider to select your tranche amount or type it in. Each tranche must be at least 5% of the overall principal amount of the loan. ### Step 7: Lower the APR Move the slider to select your improved APR or type it in. The APR must be reduced by at least 5% for the selected principal amount. ![](https://lh7-us.googleusercontent.com/docsz/AD_4nXfHZd82DY9Qwf8HE0vusO7Op-EWv2zsRAxlmYm32OLRcDXuTdAS4W9ucAcbbJspoeGzZExHLHOkFMDlRRqCCUh1hzQYYa-OxB3vx24FjIn63OdqLV0CEJWjto95PnmNR_zD5zn86jemLRugiqA84hjBPTQ?key=3K_2NypJBiJrARQwWz0Guw) ### **Step 8 - Review and Confirm** Review all the terms carefully before confirming the transaction. ![](https://lh7-us.googleusercontent.com/docsz/AD_4nXegp16OUAAfJZxMYIbrEFSBaUT6BNDaenRusKYgwL1kCRjdJ2Nu1f7yV23mQuf8ID98-eMk9a_gp5DFvafuN-zq6rvrf5aiYEATy2HiJU7T7-_l3P2W3xih4e1oeMxxYhm8V4A1kRI8XsZMAuEo6Y_gBJgo?key=3K_2NypJBiJrARQwWz0Guw) #### Key terms include: 1. **New Principal:** The amount of WETH or USDC being lent or borrowed. 2. **New APR:** The updated annual percentage rate—representing the loan's annualized yield. 3. **New Daily Interest:** The updated daily cost for the borrower. 4. **New Due Date (maturity):** The final date the borrower must repay to avoid default. 5. **Exp. Interest Left:** The expected interest the borrower should pay. 6. **Accrued interest:** The existing lender's accrued interest, which must be paid upfront by new lenders. Note: This isn't a cost as the borrower will repay it along with the interest and it won't reduce the 'Exp. Interest Left.' After reviewing, click 'Refinance' and sign with your wallet to confirm the transaction. {% hint style="info" %} If a loan already has two tranches or more, subsequent refinancing events will refinance higher APR tranches first. {% endhint %} *** These steps should guide you through the process of using the partial refinance feature effectively. If you need further clarification or assistance, feel free to ask in [GONDI’s Discord](http://discord.gg/gondi). # Trim the Top Refinancing Trim the Top allows lenders to set risk parameters for a specific collection, streamlining the process of refinancing multiple loans and tranches simultaneously. Here's how to use it: ### Step 1: Visit the Refinance Loans Page Navigate to the [Refinance Loans](https://www.gondi.xyz/refinance/loans#trim-the-top) page and select the "Trim the Top" tab.
### Step 2: Select the Collection Choose the collection you want to trim, for example, CryptoPunks.
### Step 3: Enter the Trim Amount Using the slider, enter the total principal amount you will be lending across the loans you trim (marked with a black check). Loans marked with a '✓' will be fully refinanced. Loans with a ‘—’ will be partially refinanced.
### Step 4: Use Filters to Narrow Down Loans Use the filters to narrow down the loans you want to refinance: * **Principal:** Filter loans by their outstanding principal. * **Days Left:** Filter loans based on the remaining days. ### Step 5: Select the Percentage for Refinancing Choose the percentage you want to improve the loans by—options are 5%, 10%, or 15%. Higher improvements reduce the interest collected but also the likelihood of your loan getting refinanced by another lender. ### Step 6: Review and Confirm Carefully review the details of the Trim the Top refinance. If everything is correct, click the "Refinance" button and confirm the transaction in your wallet.
*** These steps should guide you through the process of using the Trim the Top feature effectively. If you need further clarification or assistance, feel free to ask in [GONDI’s Discord](http://discord.gg/gondi). # How to Renegotiate a Loan This guide walks you through the steps for initiating a loan renegotiation as a lender on GONDI V3. ### **Renegotiation vs. Refinancing** Renegotiation allows lenders to propose changes to the terms of outstanding loans, such as extending the due date, changing the interest rate, or offering more principal. This is not to be confused with refinancing, which allows lenders to instantly take over outstanding loans by lowering the APR. For more details on loan renegotiation, check out [Renegotiations](/gondi-v3/renegotiations). ### **Step 1: Access the Renegotiation Flow** * Navigate to the [Make Offers](https://www.gondi.xyz/make-offers#renegotiations) page from the main menu. * Select the 'Renegotiations' tab to find a list of outstanding offers open for renegotiations.
### **Step 2: Choose a Loan and Initiate the Offer** * From the list, select the loan you'd like to renegotiate. * Click on the "Make Renegotiation Offer" button. {% hint style="info" %} For more details on a loan, click the white arrow to open its profile page. Here, you'll find past activity and other information, and you can also start the renegotiation process. {% endhint %} ### **Step 3: Connect Your Wallet** * Ensure your wallet is connected to GONDI. You'll be prompted to connect it at this step if it isn't. * For extra peace of mind, double-check you’re on GONDI’s official site . ### **Step 4: Define Your Renegotiation Proposal** * **Expiration Date:** Set a timeframe for your offer's validity. Consider at least three days to give the borrower enough time. * **Principal (optional):** Enter the new loan amount you'd like to lend. * **New APR (optional):** Adjust the proposed interest rate using the APR bar. * **New Due Date (optional):** Set a new repayment deadline, with a minimum adjustment of five days from the current due date. * **Origination Fee (optional):** You can optionally include an origination fee you'll receive when the borrower accepts the offer. The fee is deducted from the loan principal and must be less than 10% of the principal.
### **Step 5: Review the Terms of the Offer** Before submitting your proposal, carefully review all the details. #### Key Terms of the Offer: * **Principal:** The total loan amount being offered (WETH or USDC). * **Due Date:** The final repayment date for the loan. * **Duration Left:** The remaining days until the new due date of the proposal. * **APR:** The annual percentage rate on the loan. * **Origination Fee (optional):** The upfront fee the borrower pays if they accept the renegotiation offer. * **Effective APR:** The actual interest rate the borrower will pay when including the origination fee. * **Max Interest Left:** The total interest the borrower would pay if they continued with the original terms. ### **Step 6: Confirm the Offer** * After reviewing, click the “Make Renegotiation Offer” button to submit it. * GONDI V3 streamlined renegotiations by allowing lenders to pay only the difference, not the full balance. This reduces upfront capital needs. {% hint style="info" %} You can make renegotiation offers without having enough balance in your wallet, but the offer will only become visible to the borrower once your wallet has sufficient funds. {% endhint %} ### **Step 7: Wait for Borrower** Loan terms in a renegotiation might not always be strictly better for the borrower, so the final decision rests with the borrower to accept or reject the offer. Be prepared to adjust your terms to reach an agreement. Once you initiate a renegotiation request, the borrower should review your offer and respond within the specified timeframe. If you submit it in your GONDI profile, you’ll be notified of their decision by email or through the GONDI dApp. *** These steps should help you effectively negotiate loans. If you need further clarification or assistance, feel free to ask in [GONDI’s Discord](http://discord.gg/gondi). # GONDI V2 Launched in November 2023, GONDI V2 introduced Vaults and Flash Actions, among other improvements, cementing GONDI as the most flexible and advanced NFT lending protocol. To learn about the latest GONDI protocol upgrade, visit [GONDI V3](/). To keep reading about GONDI V2, continue to [Introducing Gondi V2](/gondi-v1-and-v2/gondi-v2/introducing-gondi-v2). # Introducing Gondi V2 GONDI is a decentralized non-custodial NFT lending protocol engineered to enable the most capital efficient loan primitive and credit market for NFTs. GONDI V2 is the most composable and flexible defi primitive. GONDI loans enable continuous underwriting, allowing any outstanding loan to get refinanced, creating a more dynamic and liquid ecosystem. {% hint style="info" %} **GONDI V1 Outstanding Loans: No action needed.** Loans originated on GONDI V1 will be supported until all have been closed. All new loan offers and new loan originations starting November 16th, 2023 will be for GONDI V2. {% endhint %} #### **Welcome to** GONDI**. NFT Lending. Reimagined.** *** **Borrower Benefits** 1. Use your NFTs to borrow WETH or USDC. 2. Interest accrues only based on outstanding duration. 3. No oracle or sudden liquidations. 4. Constantly improving loan terms with no cost or additional work. Lenders automatically refinance your loan given new loan terms are strictly better for you. 5. Unwind your loan by selling your collateral on GONDI to repay your loan and keep excess proceeds. 6. Receive loan renegotiation offers from current and future lenders, expanding your options to the entire market. GONDI loans are cheaper, more flexible and require less work. **Lender Benefits** 1. Boost your capital deployment: originate new loans, instantly refinance existing ones, and participate in open-market renegotiations. 2. Underwrite loans at your own pace, seizing opportunities in new loans or refinance existing ones. 3. Flexible loan renegotiations with customizable fees to any outstanding loan, including your own. 4. Optimize your budget management by creating collection offers with specific loan capacities. 5. Limited liquidity? Opt for tranche refinancing to refinance just a portion of a loan. ​ # Loan Basics ## Loan Properties * Principal (in WETH or USDC) * Gross APR (Annual percentage rate) * Due date (timestamp to repay loan plus accrued interest to avoid defaulting) * Origination fee (optional) * Collateral (supported ERC-721 NFTs) {% hint style="info" %} **Interest only accrues while the loan is outstanding meaning a borrower always has the option to repay early to save on interest cost.** {% endhint %} Origination fee can only be included upon loan origination or renegotiations. Origination fee is not supported for full or partial refinancing. Origination fee amount is deducted from the principal. Gondi loans have a lock-up period of 5% of their max duration during which they cannot be refinanced upon origination. ### Loan Example

Gondi Loan without refinancing

**How it works:** 1. Borrower lists its NFT (ERC-721). Items can receive offers without being listed, but listing signals that the borrower is actively seeking a loan. 2. Lenders make offers against the listed collateral. 3. The borrower accepts an offer which transfers the principal from the lender and sends the collateral into Gondi's escrow contract. 4. The loan is repaid in full including accrued interests and the NFT is retrieved to the borrower. 5. In case the loan is not repaid before maturity, the lender can claim the escrowed NFT and transfer it to its wallet. # Loan Offers ## Loan Offers Loan offers can be created on Gondi's dApp or through its API. \ Loan offers must include: * Maximum Principal amount (in WETH or USDC) * APR expressed as a percentage * Due date for repayment * Origination Fee (optional) * Expiration date Loan offers can be created for specific items or collection-wide (including for ArtBlocks collections). Lenders are allowed to make multiple offers to the same NFT. {% hint style="info" %} **An offer's principal is the maximum amount allowed to be borrowed from that offer. A borrower might choose to accept and offer but take only a portion of the principal at the same APR.** {% endhint %} Lenders can manage their exposure in collection offers by setting a capacity number of loans that can be originated from it. Similar to item offers, lenders can create multiple offers for the same collection.\ \ Loan offers can be cancelled on-chain before expiration by the lender or alternatively, hidden from Gondi's dApp although they would still be active on-chain until expiration. ## Buy Offers Buy offers can be created for items in outstanding loans which allow lenders to sell & repay their loan with one transaction in case they don't have enough liquidity to repay before due date. Buy offers are created on Gondi's dApp. There's no fee associated with selling and repaying loan. # Refinancing Lenders may also extend a loan's due date as long as the APR lowered as well. Refinancing do not allow shortening a loan's due date under any circumstance. Increasing a loan's principal is also possible if APR is lowered such that the daily interest paid by a borrower exhibits a net reduction. For refinancings which result in a larger principal, the net increase is transferred to the borrower's wallet. {% hint style="info" %} **All loan refinancing require an APR decrease.** {% endhint %} The minimum required improvement for principal amount is 5%. However, to extend a loan's due date, the minimum improvement needed is 10% of the remaining loan duration, rounded up to the nearest whole day. ### **Refinancing Lock-ups** In loan refinancing, a new lender transfers both the loan's principal amount and the interest accrued until a specific point from the original lender. This process can be repeated multiple times, with each new lender taking responsibility for the interest accumulated since the loan's inception. Every time a loan is refinanced, a lock up period begins during which the loan may not be refinanced to guarantee a minimum duration for the lender. The lock up period is equivalent to 5% of the remaining time before due date. ### Refinancing Example Alice's loan offer is accepted by Bob (borrower) with the following terms on April 1st: * Principal: 10.00 WETH * APR: 20% * Due date: April 30th (30 days duration) On April 10th, Charly refinances the loan by lowering its APR. * Principal: 10 WETH * APR ~~20%~~ 14% * Due date: April 30th (20 days duration) Charly must transfer the principal and Alice's accrued interest in order to refinance. Alice accrued 0.0548 WETH over 10 days. No action is required by Bob as loan terms are better for the borrower. On April 20th, Bob decides to repay the loan. Bob's loan accrued at 20% APR for 10 days and at 14% for another 10 days. Bob owes 10 WETH for the principal and 0.0931 WETH in interest (0.0548 + 0.0383 for each 10 day period ) #### Repayment distribution: * Bob paid 0.0931 WETH in interest * Charly earned 0.0383 WETH in interest (10 days at 14% APR) * Alice earned 0.0548 WETH in interest (10 days at 20% APR) Note: all calculations are rounded to 3 decimal places in the above example. # Partial (Tranche) Refinancing ### **Partial Refinancing** 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 overall principal amount of the loan. Similarly to full refinancing, partial refinancings must experience an APR reduction of at least 5% for the selected principal amount. \ \ Partial refinancing only allows to lower APR. Changing due date or principal is not possible. If a loan already has at least 2 tranches, subsequent refinancing events will refinance higher APR tranches first. In case the selected principal amount encompasses multiple tranches, then the 5% minimum APR improvement must be in respect to the tranche with lowest APR of the selected. Lock-ups are applied on a tranche basis after a refinancing. Lock-ups for tranches are also 5% of remaining duration. ### Partial Refinancing Example Alice's loan offer is accepted by Bob (borrower) with the following terms on April 1st: * Principal: 10.00 WETH * APR: 20% * Due date: April 30th (30 days duration) Charly is a new lender that partially refinances 5 WETH to 12% APR. Alice continues to accrue 5 WETH at 20%. ### **From Tranches to Single-Lender** Lenders may refinance all outstanding tranches of a given loan into one. To initiate this process, the prospective lender would still need need to set an APR at least 5% lower than the tranche with the lowest APR. Additionally, this transaction also allows the lender to extend the duration of the loan. The protocol also allows for an increase in the principal amount, provided that the daily interest of the new combined loan remains lower than the combined daily interest of all tranches. The protocol then merges all tranches into a single tranche with the improved terms set by the new lender. The new lender must transfer the outstanding principal and accrued interest for every tranche in order to refinance the loan. # Repayment \ Repayment --------- #### **Basic Repayment** Loans can be repaid anytime before the due date. You'll only pay interest up to the repayment time, not the full loan duration. If you miss the due date, you risk losing your collateral.**Repayments must be done in full (principal & accrued interest) and prior to the due date.** #### Sell & Repay Alternatively, loans can also get repaid by selling the underlying collateral. Borrowers may accept buy offers on Gondi's dApp in order to repay the loan in the same transaction. Borrowers may only opt for this option when the Net Proceeds from a sale are at least the same as the owed Principal + Accrued interest. Any excess amount from a sell & repay transaction is kept by the borrower.![](https://files.gitbook.com/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FJbJs5FpWUFN3IDPnyniy%2Fuploads%2FpkzcgQhL20VBYxAjBtFT%2FSell%20%26%20Repay.png?alt=media\&token=3b21ee2f-9bcc-45c9-9b0c-76c0ee9072d0)​ # Renegotiations ## Renegotiations Outstanding loans can also be renegotiated by any lender. Renegotiations are helpful when the proposed loan terms are not strictly better compared the outstanding loan terms. For instance, a borrower might want to extend a loan in exchange of a higher APR. This new loan term would require a renegotiation offer.Lenders can also include origination fees as part of a renegotiation offer. Loan renegotiations are not limited to the corresponding lender(s) but available to everyone.Contrary to a refinance, renegotiations require borrowers to accept the renegotiation offer as loan terms are not strictly better compared to outstanding ones.In Gondi V2, borrowers are responsible to pay the accrued interest in order to accept a renegotiation offer. When the renegotiation offer has a lower principal amount than the outstanding loan, the difference must also be covered by the borrower in order to accept the renegotiation offer. Borrowers do not need the full principal amount to accept renegotiation offers but only any delta in principal and accrued interest.Lock-ups for refinancing are also applied after a renegotiation offer is accepted by the borrower. # Defaults & Auctions ### Defaults for single lender Loan Loans that have a one lender and fail to repay the principal plus accrued interest before due date are considered defaulted loans. In these cases, the lender take possession of the collateral by claiming it. ### Defaults for multi tranche Loan (Auction) Defaulted loans with two or more tranches undergo an auction process on Gondi's dapp. The auction is a 72-hour English auction where participants openly bid against one another, with each bid required to be 5% higher than the previous one. If a new bid is placed when there are less than 10 minutes remaining, the auction is extended by 10 minutes. The highest bidder wins the collateral at the end of the auction. After every highest bid, the auction contract takes possession of the capital from the highest bidder, and keeps it until auction ends or the highest bidder is outbid by somebody else. Gondi allocates 1% of auction proceeds to the wallets that initiate auction and settle auction. Each loan tranche has three important variables to consider for auction distributions: * Principal lent -> Net amount lent to borrower. * Interest cost -> Amount paid by lender for previous accrued interest. * Pending interest -> Amount of accrued interest that were owed and unpaid by due date. **Distribution of auction proceeds:** * Proceeds < Principal + Interest cost + All Pending interest -> Pro-rata to lenders based on principal + interest cost. * Proceeds ≥ Principal + Interest cost + All Pending interest -> Each lender gets the amount owed including pending interest. The remainder is distributed pro-rata based on principal + interest cost. # Protocol Contracts ### V2 Contracts: **Multi Source Loan:** Main contract of the protocol where loans are originated/refinanced/repaid. It also keeps collateral in escrow. Contract address: 0x478f6F994C6fb3cf3e444a489b3AD9edB8cCaE16 **User Vaults Factory:** Vault creation contract for borrowers Contract address: 0x14a6Dcebb2Bb73aae1b199CCAadA75247b81976D **Range Validator:** Validates collection offers across a range of token IDs enabling collection offers for specific Artblocks Curated collections like Fidenzas, Chromie Squiggles, and more. Contract address: 0x18905fc7F3AaB462394F45B69308509a6b75573b **Auction Manager:** Auctions manager for defaulted loans with multiple lenders. Contract address: 0x97d34635b605c2f1630d6b4c6c5d222b8a2ca47d **Liquidation Distributor** Distributed proceeds from auction of defaulted items Contract address: 0xedfbee5e877eb02307e9c9e40be4e440e52f51c5 **Collection Manager:** Manager of whitelisted collections supported by Gondi. Contract address: 0x52Ac424eF7B283aA5bADB8c6254832E3280d7398 **Currency Manager:** Manager of ERC-20 tokens supported by Gondi. Contract address: 0x4150deD32A6D3bfecAE76e7558Af480190344927 **Delegate Registry:** Contract address: 0x00000000000000447e69651d841bD8D104Bed493 ### V1 Contracts: \ **Multi Source Loan:** Main contract of the protocol where loans are originated/refinanced/repaid. It also keeps collateral in escrow. After a loan is liquidated, it distributes the proceeds accordingly. Contract address: 0xCa5a494Ca20483e21ec1E41FE1D9461Da77595Bd **Liquidator Contract:** Auctions manager for defaulted loans with multiple lenders. Contract address: 0x237e4421C742d843Fdd96D22294D338507e17091 **Range Validator:** Validates collection offers across a range of token IDs enabling collection offers for specific Artblocks Curated collections like Fidenzas, Chromie Squiggles, and more. Contract address: 0x18905fc7F3AaB462394F45B69308509a6b75573b **Collection Manager:** Manager of whitelisted collections supported by Gondi. Contract address: 0x52Ac424eF7B283aA5bADB8c6254832E3280d7398 **Currency Manager:** Manager of ERC-20 tokens supported by Gondi. Contract address: 0x4150deD32A6D3bfecAE76e7558Af480190344927 # Protocol Fees The protocol charges a fee proportional to the interest paid. Such fee is deducted from the interest paid to the lender upon loan completion. Protocol fees:
Protocol FeesProtocol will keep a percentage of paid interest to lenders both for standard and refinance loans. Initial fee will be set at 0%.
# FAQ V2 ## FAQs **Does Gondi support Delegate.Cash?** Yes it does, which means it also supports Vulcan and Tokenproof **Is Gondi compatible with Gnosis Safe?** Yes! Lenders can keep their capital in a Safe since our protocol supports the ERC-1271 standard.**Can I receive an Airdrop while my NFT is part of an outstanding loan?** Yes. Gondi supports flash actions **Can I get access to Gondi's API?** We are working hard to give everyone access! Currently, we are issuing as many as we can to strategic partners (if you think you can be one, please reach out to us on Discord) **How do I enable instant refinancing for my loan as a borrower?** Instant refinancing is enabled by default so you do not have to worry about it! **How can I refinance outstanding loans?** Identify those loans whose terms you are willing to improve, and simply go ahead and do it. You will need to transfer the principal + accrued interest to the existing lender. If the new principal is higher than the original one, then that difference will be transfer to the borrower. **Do I need to pay gas fees to list my items?** Not at all. Listings are free as they are signed off-chain. **How do liquidations work?** When a single-lender loan expires without being repaid, the lender can claim its collateral. If the loan has multiple lenders, then the NFT would be auctioned and the proceeds would be distributed pro-rata to all lenders. **Do I need to have balance available to make offers to listings?** You can make offers to listings even if at the time you do not count with enough capital. These offers will be hidden until that changes (this is automatic!). **Do you support loans against ERC-1155s?** We currently do not support ERC-1155s but we plan to do so. **Can I refinance only a fraction of a loan?** Either if you are trying to diversify your portfolio across multiple loans or you don't have the liquidity, you can choose to partially refinance a loan. # GONDI V1 Launched in July 2023, GONDI V1 introduced disruptive loan mechanics such as instant refinancing and pro-rata interest. These innovations created a more competitive and capital-efficient market. To learn about the latest upgrade of GONDI's protocol, visit [GONDI V3](/). To learn about GONDI V1, continue to [Gondi V1 Loans](/gondi-v1-and-v2/gondi-v1/gondi-v1-loans). # Gondi V1 Loans ## Loan Properties * Principal (in WETH or USDC) * Gross APR (Annual percentage rate) * Due date (timestamp to repay loan plus accrued interest to avoid defaulting) * Origination fee (optional for new loans and renegotiations. Fee deducted on origination from Principal) * Collateral (supported ERC-721 NFTs) **Interest only accrues while loan is outstanding.** ### Offers Lenders on Gondi create individual offers to listed items looking for loans. Offers have the same properties as a loan, with the addition of an expiration date. Lenders can make multiple offers to the same NFT. Lenders can also create Collection offers, where any NFT from a collection can accept the loan terms. Lenders can set budgets for collection offers to manager their exposure. Similar to item offers, lenders can create more than one multiple collection for the same collection. All offers can be cancelled on-chain before expiration by the lender. # Instant & Partial Refinancing ## Instant Refinancing Gondi enables instant refinancing. Any lender can improve the loan terms of any outstanding loan without any borrower's action.A loan can be refinanced by lowering its APR by at least 1%.Lenders may also extend the loan's due date or increase the loan's principal as long as APR is also lowered. In the case of Principal increase, the loan's APR needs to be lowered such that the daily interest paid by a borrower is the same or smaller than the current one.​At refinancing, the prospective (new) lender transfers the loan's principal and accrued interest to the original (old) lender. There is no limit to the times a loan can be refinanced, with each incoming lender responsible for the interest accumulated from the loan's origination.Two conditions must be met to execute an instant refinance: 1. 1.The borrower's daily interest must exhibit a net reduction 2. 2.The existing loan's due date must either be maintained or extended. APR and Principal minimum improvements are 1%. In the case of extending a loan's due date, the minimum improvement is 10% of the loan's remaining duration (expressed in whole days and rounded up).In the case of an instant refinance with a larger principal, the additional amount is transferred to the borrower's wallet.Interest is pro rated based on outstanding time. Borrowers may repay at any point in time before loan maturity and only owe interest based on outstanding time.Origination fees cannot be added as part of a refinance. ### **Partial Refinancing** 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 overall principal amount of the loan. Refinancing a fraction of a loan is possible as long as the Annual Percentage Rate (APR) is improved (lowered) by at least 1% and the principal of the new tranche is at least 5% of the total principal amount.When partially refinancing a loan, the protocol does not allow due date or principal amount change since this would change the risk profile of the loan overall, potentially affecting other existing lenders of the given loan.Gondi Loan example with Partial Refinancing**Example I**Consider a loan which originally has a principal of 10 WETH and 20% APR, and it's then refinanced by Bob (Lender B), who takes 7 WETH at 18%:
* 3 WETH at 20% APR provided by Alice (Lender A) * 7 WETH at 18% APR provided by Bob A prospective lender, Charly (Lender C) wishes to refinance 5 WETH. Since the principal must remain the same, this means that he would refinance the 3 WETH that were originally provided by Alice, as well as 2 WETH by Bob. In this case, it would need to propose a minimum of 1% improvement to the lowest existing APR (18%). The outcome of this refinancing operation would be: * 5 WETH at 18% APR held by Bob * 5 WETH at 17.82% APR provided by Charly **Example II**Let us now consider the loan from the previous example before it's been refinanced by lender 3. Now, Charly's desired principal amount is only 2 WETH, then the 1% improvement would be towards Alice's 20% APR. The outcome of this partial refinancing operation would be: * 1 WETH at 20% APR provided by Alice * 2 WETH at 19.8% APR from Charly * 7 WETH at 18% APR provided by Bob These examples are to illustrate the minimum improvements. Prospective lenders can opt to decrease the APR by more than 1%. ### **From Multiple Tranches to a Single-Lender** Lenders can also choose to refinance all outstanding tranches of a given loan. To initiate this process, the prospective lender would still need need to set an Annual Percentage Rate (APR) that is at least 1% lower than the APR of the tranche with the lowest rate. Additionally, this also allows them to extend the duration of the loan.The protocol also allows for an increase in the principal amount, as long as the daily interest of the new combined loan remains lower than the combined daily interest of all tranches.The protocol then merges all tranches into a single loan with the improved terms set by the prospective lender. Similar to other refinancings, prospective lender repay the outstanding principal and accrued interest to the current lenders, and takes on the responsibility of the loan moving forward. # Repayments & Renegotiations ## Repayments & Renegotiations #### Renegotiations Outstanding loans can also be renegotiated. Renegotiations are helpful when the proposed loan terms are not strictly better than the outstanding ones (otherwise lenders would choose to instantly refinance). For instance, a renegotiation offer might have a higher principal but also a higher APR.Lenders can add any an origination fee when renegotiating. In Gondi V1, when a borrower accepts a renegotiation offer, the lenders must transfer not only the principal but also the accrued interest.Borrowers do not need to repay the full loan amount but only any difference in principal between the outstanding and new offer.Loan renegotiations are not limited to the corresponding lender(s) but available to everyone. Renegotiation offers are only valid while a loan is outstanding and is not past its due date. #### **Repayments** Gondi loans do not depend on oracles or minimum loan-to-value ratios (LTV). Loans can be repaid at any time before its due date.Borrowers are only liable for the interest accrued up until the repayment time (and not the full duration of the loan).If no repayment is made before due date, the loan defaults. # Defaults & Liquidations ### Defaults for single tranche Loan Loans that have a single tranche and fail to repay the principal plus accrued interest before due date are considered as defaulted loans. The lender may take possession of the collateral by claiming it. ### Defaults for multi tranche Loan Defaulted loans with two or more tranches undergo an auction process if loan defaults. The auction process is a 72 hour English auction where participants openly bid against one another, with each bid required to be 5% higher than the previous one. If a new bid is placed when there are less than 10 minutes remaining, the auction is extended by 10 minutes. The highest bidder wins the collateral at the end of the auction. After every highest bid, the auction contract takes possession of the capital from the highest bidder, and keeps it until auction ends or the highest bidder is outbid by somebody else. Gondi allocates 1% of auction proceeds to the wallets that initiate auction and settle auction. Each loan tranche has three important variables to consider for auction distributions: * Principal lent -> Net amount lent to borrower. * Interest cost -> Amount paid by lender for previous accrued interest. * Pending interest -> Amount of accrued interest that were owed and unpaid by due date. **Distribution of auction proceeds:** * Proceeds < Principal + Interest cost + All Pending interest -> Pro-rata to lenders based on principal + interest cost. * Proceeds ≥ Principal + Interest cost + All Pending interest -> Each lender gets the amount owed including pending interest. The remainder is distributed pro-rata based on principal + interest cost. # Loan Examples ## Simple Loan Example

Gondi Loan without refinancing

**How it works:** 1. Borrower lists its NFT (ERC-721). Items can receive offers without being listed, but listing signals that the borrower is actively seeking a loan. 2. Lenders make offers against the listed collateral. 3. The borrower accepts an offer which transfers the principal from the lender and sends the collateral into Gondi's escrow contract. 4. The loan is repaid in full including accrued interests and the NFT is retrieved to the borrower. 5. In case the loan is not repaid before maturity, the lender can claim the escrowed NFT and transfer it to its wallet. ## Loan with Refinance

Gondi Loan with Refinancing

Steps 1, 2 and 3 are identical to the simple loan example. Borrower accepted Alice's (Lender A's) loan offer: * Principal: 10.00 WETH * APR: 22% * Duration: 30 days Note: Refinancing a loan requires that the due date is the same or further out in the future than the current due date. 4. **10 days into the loan, Bob (Lender B) refinances the loan by providing better loan terms. New loan terms are:** * Principal: 10 WETH * APR ~~22%~~ 17% * Duration: 20 days (same due date) Bob must transfer 10 WETH as principal and Alice's accrued interest. Alice's daily interest rate is 0.0602% accruing 0.0602 WETH over 10 days. Bob total cost is 10.0602 WETH (principal plus accrued interest) and gas fee. Bob executes the transaction successful and becomes the new lender of record. 5. **At day 20, Charly (Lender C) refinances the loan with the following loan terms:** * Principal: ~~10 WETH~~ 11.00 WETH * APR: ~~17%~~ 10% * Duration: ~~10 days~~ 30 days Bob's daily interest rate is 0.0465% accruing 0.0465 WETH during 10 days. The total cost for Charly to refinance the loan is 11 WETH + 0.0465 WETH (Bob's interest) + 0.0602 WETH (Alice's interest) = 11.1068 WETH. Note: Charly must include accrued interest of Alice and Bob. The transaction is split as follows: * 10.1068 WETH to Lender B (principal, B's interest and A's interest) * 1 WETH to Borrower as additional principal Note: Charly had to lower the loan's APR such that daily interest amount is lower than what Bob was accruing with a lower principal. Bob daily interest: 0.00465 WETH (10 WETH principal at 17% APR) Charly daily interest: 0.00301 WETH (11 WETH principal at 10% APR) 6. **Borrower repays loan 10 days later( 30 days after origination in total)** Charly refinanced the loan at day 20 with a 30 day duration from that moment. Due date is 50 days after initial origination. The Borrower, however, decides to pay 10 days after Charly refinanced the loan. \ \ Charly accrued interest: 0.03013 WETH (0.003013 WETH daily interest over 10 days) Borrower repayment breakdown: * 11 WETH principal * 0.0301 WETH for Charly's accrued interest * 0.0465 WETH for Bob's accrued interest * 0.0602 WETH for Alice's accrued interest Total interest paid by borrower: 0.1369 WETH. Without refinancing, the interest paid would have been 0.1808 WETH. In summary, the borrower **saved 24.24% in interest**, had 1 WETH more in liquidity for 10 days, and had another 20 extra days to repay the loan. # FAQ V1 #### **Is Gondi compatible with Gnosis Safe?** Yes! Lenders can keep their capital in a Safe since our protocol supports the ERC-1271 standard. #### Can I get access to Gondi's API? We are working hard to give everyone access! Currently, we are issuing as many as we can to strategic partners (if you think you can be one, please reach out to us on Discord) #### How do I enable instant refinancing for my loan as a borrower? Instant refinancing is enabled by default so you do not have to worry about it! #### How can I refinance outstanding loans? Identify those loans whose terms you are willing to improve, and simply go ahead and do it. You will need to transfer the principal + accrued interest to the existing lender. If the new principal is higher than the original one, then that difference will be transfer to the borrower. #### Do I need to pay gas fees to list my items? Not at all. Listings are free as they are signed off-chain. #### How do liquidations work? When a single-lender loan expires without being repaid, the lender can claim its collateral. If the loan has multiple lenders, then the NFT would be auctioned and the proceeds would be distributed pro-rata to all lenders. #### Do I need to have balance available to make offers to listings? You can make offers to listings even if at the time you do not count with enough capital. These offers will be hidden until that changes (this is automatic!). #### Do you support loans against ERC-1155s? We currently do not support ERC-1155s but we plan to do so. #### Can I refinance only a fraction of a loan? Either if you are trying to diversify your portfolio across multiple loans or you don't have the liquidity, you can choose to partially refinance a loan. # Content with Pools # Loan Basics w/pools ## Loan Properties * Principal Amount (in WETH or USDC) * Gross APR (annual percentage rate) * Due date (timestamp to repay loan plus accrued interest to avoid default) * Origination fee (optional) * Collateral (supported ERC-721 NFTs) {% hint style="info" %} **Pro Rata Interest** Interest only accrues while the loan is outstanding meaning a borrower always has the option to repay early to save on interest cost. {% endhint %} ### Loan Example

Gondi Loan without refinancing

#### **How it works:** 1. Borrower lists NFT (ERC-721) to view outstanding offers or receive specific item offers for specific items. 2. Pool and individual lenders create offers against the listed collateral with different terms and seniority. 3. Borrower selects the loan amount and duration. GONDI dApp programmatically selects the lowest interest rate + origination fee offer or combination of offers from pools and peers to originate loan. Collateral is sent to the GONDI's escrow contract. 4. Loans must be repaid in full including accrued interest to retrieved collateral. No installments or partial payments are supported. 5. If borrower fails to repay before maturity, the loan defaults. If there's only one lender, they can claim the escrowed collateral. If loan has multiple tranches, there is an optional buyout period for largest lender, followed by an auction to liquidate collateral. More details on Defaults & Auctions. The origination fee can only be included at origination or renegotiations. The origination fee is not supported for refinancing. The origination fee amount is deducted from the principal amount. GONDI loans cannot be refinanced for the initial 5% and the last 10% of the loan's duration. Every time a loan is refinanced or renegotiated, the 5% initial lock up is activated. ## Repayments Loans can be repaid anytime before the due date. Interest accrues on a pro-rata basis, meaning it only accrues based on the net outstanding time, with no early repayment penalties. {% hint style="info" %} **No Partial Principal Repayment** Repayments must be done in full (principal and accrued interest) before the due date. {% endhint %} # Introducing GONDI w/pools ## What is GONDI? GONDI is a decentralized non-custodial NFT lending protocol that aims to offer the most flexible and capital-efficient primitive. GONDI is the first protocol combining peer-to-peer and liquidity pool markets, providing deeper and more precise liquidity for borrowers and adaptable lending opportunities for lenders. GONDI V3 loan offers can be either from the protocol pools or from individual market participants creating deep liquidity as well as efficient risk pricing. {% hint style="info" %} **GONDI V1 & GONDI V2 Outstanding Loans: No action needed.** \ Loans originated on GONDI V1 & GONDI V2 are not impacted by GONDI V3 and mechanics will remain the same. {% endhint %} ## **Benefits** ### For Borrowers 1. Borrow WETH or USDC by using your NFTs as collateral. 2. Interest accrues on pro rata basis. 3. No oracle-triggered liquidations. 4. Refinancing: Loan terms can improve as lenders refinance your loan by improving terms (eg. lower APR). 5. Unwind your loan by selling your collateral to repay your loan and keep excess proceeds. 6. Renegotiate loans that need an extension or different terms. 7. Instantly tap into liquidity via GONDI pools. ### **For Individual Lenders** 1. Access yields by originating new loans, refinancing existing loans, and submitting renegotiation offers. 2. Set your own risk parameter for any collateral for new or existing loans. 3. Instantly take over existing loans by refinancing them. 4. Flexible loan renegotiations with customizable fees to any outstanding loan, including your own. 5. Optimize your budget management by creating collection offers with specific loan parameters. ### **For Pool Liquidity Providers** 1. Supply capital on WETH or USDC vaults and access yields. 2. No NFT specific knowledge or portfolio management required. 3. Enter and exit your lending positions at any time by swapping pool tokens for WETH or USDC 4. Pools get automatically rebalanced to yield bearing tokens (eg stETH or aUSDC) when pools have idle capital. {% hint style="info" %} The contents of GONDI docs are a collection of the latest development updates and are never considered final. {% endhint %} # Loan Offers w/pools Loan offers can be submitted by GONDI pools and individual market participants. Offers compete against one another regardless of whether they are from GONDI pools or individuals and may even be combined. #### **Loan offers must include:** * Maximum Principal amount (in WETH or USDC) * APR expressed as a percentage * Due Date for repayment * Origination Fee (optional) * Max Senior Repayment * Expiration Date Loan offers can be set for specific items or entire collections (including for ArtBlocks collections). Multiple offers may be submitted for the same item or collection from the same wallet. {% hint style="info" %} **Maximum Principal** An offer's principal is the maximum amount allowed to be borrowed from that offer. A borrower may choose to borrow only a portion of the available principal. For example, a borrower might have up to 10 WETH available to borrow from one or multiple offers and decide only to borrow 7 WETH. {% endhint %} GONDI loans may consist of more than one offer with different seniorities. Depending on the borrower's best combination of offers, a loan can be originated with a single tranche or multiple tranches. Lenders specify the maximum repayment amount they are willing to accept before their tranche. If the Max Senior Repayment is set to 0 WETH, the offer can only originate as the most senior (lowest risk) tranche of the loan. ### An example #### Offer A: * **Principal:** 5.00 WETH * **APR:** 20.00% * **Duration:** 1 year * **Origination Fee:** 0.00 WETH * **Max Senior Repayment:** 10.00 WETH #### Offer B: * **Principal:** 8.00 WETH * **APR:** 25.00% * **Duration:** 1 year * **Origination Fee:** 0.00 WETH * **Max Senior Repayment:** 0.00 WETH Max Senior Repayment sets the maximum amount of debt (principal + interest - origination fee) that can be senior to such offer. Based on offer examples A and B, a borrower can get up to 13.00 WETH for one year. Different combinations of A and B can be originated depending on the amount to be borrowed.\ \ **Scenario 1** * **Principal borrowed:** 5.00 WETH * Loan gets filled 100% by offer A as it has a lower APR (20% vs 25%) than offer B **Scenario 2:** * **Principal borrowed:** 8.00 WETH * The loan gets filled with 4.00 WETH from offer B as the senior tranche and 5.00 WETH from offer A as the junior tranche. Offer A accepts up to 10.00 WETH of max senior repayment, which is more than 4.00 WETH + 1.00 WETH of interest in 1 year **Scenario 3:** * **Principal borrowed:** 13 WETH * The loan gets filled with 8.00 WETH from offer B as the senior tranche and 5 WETH from offer A as the junior tranche. Offer B is the maximum senior repayment that offer A accepts as it comprises 8.00 WETH + 2.00 WETH of potential interest, reaching the limit of Max Senior Repayment ( 10.00 WETH) GONDI takes into account both the APR and origination fee to programatically select the cheapest combination of offers given the borrower's desired principal amount and loan duration. Individual lenders can also create collection-level offers and manage their exposure by setting an offer capacity for those terms.\ \ Loan offers can be cancelled on-chain before expiration by the lender or alternatively, hidden from the GONDI dApp although they would still be active on-chain until expiration. # GONDI Pools ### What Are GONDI Pools? GONDI Pools offer borrowers instant access to liquidity and provide lenders with a straightforward mechanism to acess yields from USDC or WETH loans. By supplying liquidity to either the WETH Pool and/or USDC Pool, lenders can access passive, real yields without the need to manage individual loans. GONDI Pools lend to selected NFT collections and only target the safest portions of loans with repayment priority in case of defaults​​​​. ### WETH and USDC Pools GONDI V3 has two pools: a **WETH Pool** and a **USDC Pool**—each can make offers to multiple NFT collections simultaneously. #### GONDI Pools: * **gETH/WETH | Base Rate:** stETH * **gUSDC/USDC | Base Rate:** aUSDC ### Smart Contracts Each pool comprises three smart contracts: * **Pool contract:** Utilizes the ERC-4626 standard. Each Pool token is akin to a liquid credit position in the pool. * **Base Rate contract**: GONDI Pools feature 'deposit rebalancing.' When pool supply exceed the outstanding debt, idle deposits are rebalanced into the selected base rate token. [Read more](/content-with-pools/gondi-pools/base-rate-contract). * **Parameter Setter contract**: Contains the list of supported NFT collections, along with the principal and APR for each duration. [Read more](/content-with-pools/gondi-pools/offer-handler). For more information on GONDI V3 contracts, refer to their respective sections. ### Interest Rates Model A GONDI Pool interest rate model is defined by: ( U \* K ) + min\_apr * **U:** Utilization rate (availability of capital within the pool). * **K =** 1.1 * **min\_apr =** 5% The interest rate model follows a simple heuristic: when capital is available, low interest rates are available. When capital is scarce, interest rates increase. # Offer Handler The Parameter Setter contract for each GONDI Pool sets the parameters for valid loan offers and makes the offers. ### Pool Collections vs Whitelisted Collections GONDI Pools provide liquidity to a limited number of NFT collections, namely[ Pool Collections](/content-with-pools/gondi-pools/parameters-for-offers#pool-collections-and-parameters). Pool collections are not the same as Whitelisted collections. [Whitelisted Collections](/gondi-v3/whitelisted-collections) support P2P loans, while Pool Collections get offers from GONDI pools. All Pool Collections also support P2P offers. All offers from both GONDI Pools have Max Senior Repayment set to 0, having repayment priority in case of default. GONDI Pools offers compete against other loan offers set by individuals with no priority. Pool offers do not include an origination fee either. #### Security The Parameter Setter contract has a cooldown period every time any parameters change, requiring a second confirmation 72 hours later. Parameters can be changed as often as the cooldown period allows. ### GONDI Pool Offers Each offer from the GONDI Pools consists of two fixed parameters and two variable parameters: \ \ **Fixed Parameters:** * **NFT Collection contract** * **Loan Duration:** Currently offering 30 days, 60 days, 90 days, and 180 days **Variable Parameters:** * **APR:** Defined by the Interest Rate Model * **Principal:** defined by the MIN(X Floor, Y Historical Floor ) #### Interest Rate Model Loan APRs are defined as Base Rate + Premium Rate, where the Base Rate is considered to be something close to a standard staking yield rate (eg: staking for ETH). The Premium Rate depends on utilization and is defined as \`PremiumRate(U) = minAprPremium + utilizationFactor \* U\`, where U is the fraction of the pool in outstanding loans. #### Determining a Loan Principal Amount GONDI Pools calculate the loan principal by taking the lesser of two values: a percentage of the current floor prices or a percentage of the historical trailing floor prices of the collection. The specific percentage depends on the loan duration. Visit [Parameters for Offers](/content-with-pools/gondi-pools/parameters-for-offers) for collection-specific parameters. #### **Trailing Historical Floor for Each Offer Duration** | Offer Duration | Historical Trailing Floor | | -------------- | ------------------------- | | 30 days | 180 days | | 60 days | 365 days | | 90 days | 540 days | | 180 days | 720 days | If data for a given value were to be stale, offers requiring that value will be invalidated. The tolerance delay for floor price data is defined as the minimum between 1.5% of the outstanding duration of the loan and 3 days, and as the minimum between 3% and 3 days for trailing values. # Base Rate Contract Each [GONDI Pool](/content-with-pools/gondi-pools#weth-and-usdc-pools) has an immutable base rate contract that programmatically determines which yield-bearing token the pool will swap into when there is idle supply.\ \ Each pool aims to maintain 70-90% of its available capital in the yield-bearing token. # Supply, Swaps, & Withdrawals #### Supply into Pools GONDI Pools originate loans using deposited WETH and USDC. GONDI Pool LPs receive pool shares by providing liquidity in either pool. \ \ The market price of each Pool share is given by the sum of liquid assets (either in the denominated asset or the base rate asset), the outstanding principal of loans, and the accrued interest up until that point in time. This estimate assumes all outstanding loans will be repaid (no defaults). \ \ The market price of gETH and gUSDC are independent as each is based on the loans originated in each pool. ### Swap LPs may choose to enter Gondi pools by swapping WETH for GONDI Pool tokens on Curve: \ \ gETH/WETH Pool: \[curve link] gUSDC/USDC Pool: \[curve link]\ \ Swapping is an alternative way to enter and exit positions across GONDI pools. ### Withdrawals Withdrawals from a GONDI pool happen periodically with Withdrawal Queues. The frequency of Withdrawal Queues depend on the maximum duration of the loans originated from said pool. \ \ In the case of gETH and gUSDC, Withdrawal Queues happen every 120 days. LPs can request withdrawals based on their share balance at any point in time. When making a withdrawal request, the LP will receive a *GONDI Claim* NFT representing the future payments of the requested amount to be withdrawn. \ \ When a Withdrawal Queue becomes activated, the pool transfers the pro-rata amount of available assets. As all outstanding loans up until that point in time are repaid in the future, the pro-rata amount of proceeds from those loans becomes available to be claimed by those in the Withdrawal Queue. LPs will be able to see the schedule of future payments of the corresponding loans. Note that loans may get refinanced or repaid early shortening the wait time. \ \ GONDI Claim NFTs can be traded on the secondary market or even used to take a loan against itself on GONDI as it represents an onchain contract of future payments. # Parameters for Offers Learn how GONDI Pools calculate how much principal they offer. GONDI Pools calculate the loan principal amount by taking the smaller of two values: a percentage of the current floor price or a percentage of the historical trailing floor price of the collection. The specific percentage depends on the loan duration. This approach ensures prudent offers even with rapid increases in floor prices. ## **APR Parameters** * **PremiumRate(U)** = minAprPremium + utilizationFactor \* U * **minAprPremium** = 0.03 * **utilizationFactor** = 0.1 * **Utilization:** 0 <= U <= 1 ## Pool Collections ### CryptoPunks (Wrapped Cryptopunks & 721 Cryptopunks Wrapper) #### WETH Parameters
Loan Offer DurationCurrent FloorHistorical Floor
30 days40%65%
60 days37%65%
90 days33%65%
180 days25%50%
#### USDC Parameters
Loan DurationCurrent FloorHistorical Floor
30 days38%65%
60 days35%65%
90 days25%65%
180 days22%50%
### Chromie Squiggles #### WETH Parameters
Loan Offer DurationCurrent FloorHistorical Floor
30 days27%60%
60 days23%60%
90 days17%60%
180 days15%50%
#### USDC Parameters
Loan DurationCurrent FloorHistorical Floor
30 days27%60%
60 days23%60%
90 days17%60%
180 days15%50%
### Fidenzas #### WETH Parameters
Loan Offer DurationCurrent FloorHistorical Floor
30 days27%60%
60 days23%65%
90 days17%65%
180 days15%50%
#### USDC Parameters
Loan DurationCurrent FloorHistorical Floor
30 days27%60%
60 days23%60%
90 days17%60%
180 days15%50%
### Autoglyphs #### WETH Parameters
Loan Offer DurationCurrent FloorHistorical Floor
30 days27%60%
60 days23%60%
90 days17%60%
180 days15%50%
#### USDC Parameters
Loan DurationCurrent FloorHistorical Floor
30 days27%60%
60 days23%60%
90 days17%60%
180 days15%50%
### Pudgy Penguins #### WETH Parameters
Loan Offer DurationCurrent FloorHistorical Floor
30 days35%60%
60 days30%60%
90 days25%60%
180 days--
#### USDC Parameters
Loan DurationCurrent FloorHistorical Floor
30 days35%60%
60 days30%60%
90 days25%60%
180 days--
### Ringers #### WETH Parameters
Loan Offer DurationCurrent FloorHistorical Floor
30 days27%60%
60 days23%60%
90 days17%60%
180 days15%50%
#### USDC Parameters
Loan DurationCurrent FloorHistorical Floor
30 days27%60%
60 days23%60%
90 days17%60%
180 days15%50%
### Gazers #### WETH Parameters
Loan Offer DurationCurrent FloorHistorical Floor
30 days27%60%
60 days23%60%
90 days17%60%
180 days15%50%
#### USDC Parameters
Loan DurationCurrent FloorHistorical Floor
30 days27%60%
60 days23%60%
90 days17%60%
180 days15%50%
### Winds of Yawanawa #### WETH Parameters
Loan Offer DurationCurrent FloorHistorical Floor
30 days27%60%
60 days--
90 days--
180 days--
#### USDC Parameters
Loan DurationCurrent FloorHistorical Floor
30 days27%60%
60 days--
90 days--
180 days--
### Grifters #### WETH Parameters
Loan Offer DurationCurrent FloorHistorical Floor
30 days27%60%
60 days23%60%
90 days17%60%
180 days--
#### USDC Parameters
Loan DurationCurrent FloorHistorical Floor
30 days27%60%
60 days23%60%
90 days17%60%
180 days--
### Milady #### WETH Parameters
Loan Offer DurationCurrent FloorHistorical Floor
30 days27%60%
60 days23%60%
90 days17%60%
180 days--
#### USDC Parameters
Loan DurationCurrent FloorHistorical Floor
30 days27%60%
60 days23%60%
90 days17%60%
180 days--
### Bored Ape Yat Club #### WETH Parameters
Loan Offer DurationCurrent FloorHistorical Floor
30 days27%60%
60 days23%60%
90 days17%60%
180 days15%50%
#### USDC Parameters
Loan DurationCurrent FloorHistorical Floor
30 days27%60%
60 days23%60%
90 days17%60%
180 days15%50%
### Azuki #### WETH Parameters
Loan Offer DurationCurrent FloorHistorical Floor
30 days--
60 days--
90 days--
180 days--
#### USDC Parameters
Loan DurationCurrent FloorHistorical Floor
30 days--
60 days--
90 days--
180 days--
**Last updated:** July 10, 2024 # Oracles Pools use GONDI oracles that provide current and trailing floor price data for all supported collections. Trailing floor price data is captured across different time horizons (i.e. 180, 365, 540, 720d). # Liquidations, Buyouts & Auctions w/pools ### Single Tranche (Lender) Loan Defaults In the event of a default on a loan with a single tranche (and lender), the lender can claim the collateral through the GONDI dApp, thereby becoming the new owner of the collateral (one or multiple NFTs). ### Multiple-Tranche Loan Defaults Defaulted loans with two or more tranches undergo a two-step process: 1. Largest Lien Buyout 2. Auction #### Largest Lien Buyout GONDI allows the lender with the largest principal amount (regardless of seniority) to buy out the other tranches if such lender desires to keep the collateral. A buyout is only offered to the single largest lender. If two lenders have the same amount lent, then the most senior (non-pool) tranche gets the right for buyout. Pools do not actively participate in buyouts. \ \ If a loan has two tranches, one for the pool and one for an individual user, the individual lender will have the right to buy out the pool in full before the auction starts. The right to buyout occurs in the 48 hours after the loan defaults. To exercise the buyout right, the lender must pay all other tranches the full principal and accrued interest. #### Liquidation Auction The liquidation auction is a 72-hour English auction in which anybody can bid, with each bid required to be 5.00% higher than the previous one. If a new bid is placed with less than 10 minutes remaining, the auction is extended by 10 minutes. The highest bidder wins the collateral at the end of the auction. After every higher bid, the auction contract takes possession of the capital from the highest bidder and keeps it until the auction ends or the highest bidder is outbid by somebody else. GONDI programatically allocates 1% of auction proceeds to the wallets that initiate the auction and settle the auction. Auctions can only be initiated after the largest lien buyout period has expired. Senior tranche(s) have priority over more junior tranches. Distributions follow a waterfall from most senior first to most junior last. Distributions first go to the senior tranche to cover the principal and accrued interest before repaying the principal of the next tranche in seniority. **Distribution of auction proceeds** * Proceeds < Principal + All Accrued and Pending Interest -> Most senior tranches first, including principal, interest accrued, and pending interest. * Proceeds ≥ Principal + Interest cost + All Pending interest -> Each lender gets the amount owed, including pending interest. The remainder is distributed pro-rata based on principal + interest cost. # Protocol Disclosures w/pools GONDI is an open lending, borrowing, and decentralized finance protocol (“Protocol”) built on Ethereum. The Protocol allows Gondi users to lend and borrow certain crypto assets, including non-fungible tokens. The Protocol does not guarantee any profitability by borrowing or lending any crypto assets as applicable. Your use of the Protocol is entirely at your own risk. The Protocol is available on an “as is” basis without warranties of any kind, either express or implied, including, but not limited to, warranties of merchantability, title, fitness for a particular purpose and non-infringement. Terminology. When used in the context of describing the Protocol, the terms “debt,” “lend,” “refinance, “collateral”, “credit,” “leverage,” “bank”, “borrow”, “yield”, “invest” and/or other similar terms are not meant to be interpreted pursuant to the customary legal meaning of those terms or to those terms as defined in any body of commercial law. Rather, such terms are being used to draw rough analogies between the heavily automated and mostly deterministic operations of a decentralized-finance ("DeFi”) smart contract system and the discretionary performance of traditional-finance transactions between individuals (“TradFi”). For example, “debt” ordinarily means a legally enforceable promise from a debtor to a creditor to pay an interest rate and eventually repay the principal. Therefore, “debt” cannot exist without legal agreements and cannot be enforced without courts of law. By contrast, with the Protocol, there are no legal agreements, promises of payment or courts of law, and therefore there are no debts, loans or other traditional finance transactions involved. Instead, the Protocol consists of software (including embedded game-theoretic incentives and assumptions) through which parties can share their digital assets with other parties or smart contract systems and, under normal and expected conditions, including economic and other assumptions regarding market and market participant behaviors, *are expected to* get their digital assets returned, plus extra digital assets, most of the time or in most cases*.* Unlike in traditional lending, the “lender’s” financial return does not depend primarily on the creditworthiness, solvency or financial skill of the “borrower” or on legal mechanisms such as the perfection of liens or the priority of creditor claims in a bankruptcy - it depends primarily on the incentive model assumed by the software design and how reliably the software implements that model. Unlike a debtor, people who “borrow” digital assets from the Protocol smart contract system are not required to and have not promised to pay the digital assets back; if the “borrowers” never pay the digital assets back, no promise has been broken, no legal agreement has been breached and the digital asset “lenders” cannot sue the “borrowers” to get their digital assets back. Instead, by not repaying the borrowed digital assets, the digital asset “borrowers” merely demonstrate either that they lacked sufficient incentive to want to do so -- for example, because their smart-contract-bound “collateral” was worth much less than the “borrowed” digital assets -- or that a technical issue -- such as congestion of the settlement network (e.g., Ethereum) -- prevented them from doing so. Regardless, the “borrowers” do not have a legal obligation to repay digital assets when they do not want to or cannot do so, and there is no legal remedy for damaged “lenders” when insufficient incentives or technical problems result in a digital asset shortfall. Rate. The stated APR or APY for a given digital asset or pool (the “Rate”) is \[denominated in terms of a specific relevant digital asset, not in terms of U.S. Dollars or other fiat currencies]. Each Rate is a forward-looking projection based on a good faith belief of how to reasonably project results over the relevant period, but such belief is subject to numerous assumptions, risks and uncertainties (including smart contract security risks and third-party actions) which could result in a materially different (lower or higher) digital asset-denominated APR or APY. Rates are not offers, promises, agreements, guarantees or undertakings on the part of any person or group of persons, but depend primarily on the results of operation of smart contracts and other autonomous or semi-autonomous systems (including third-party systems) and how third parties interact with those systems after the time of your deposit. \[Even if a particular projected Rate is achieved, you may still suffer a financial loss in fiat-denominated terms if the fiat-denominated value of the relevant digital assets (your deposit and any digital assets allocated or distributed to you pursuant to the Rate) declines during the deposit period. APRs and APYs are not interest rates being paid on a debt.] DeFi Risk. Thus, the transactions you can effect through the Protocol and its decentralized finance systems, while superficially similar to traditional financial transactions in some ways, are in fact very different. DeFi and TradFi each have unique costs and benefits, risks and protection mechanisms. Please bear this fact in mind when interacting with the Protocol, and do not use the Protocol without a sufficient understanding of their unique risks and how they differ from traditional financial transactions. The only way to fully understand such risks is to have a strong understanding of the relevant technical systems and the incentive design mechanisms they embody—it is strongly encouraged that you to review the Protocol’s technical documentation and code \[2] before use. Assumption of Risk. You assume all risks associated with using or interacting with the Protocol, and digital assets and decentralized systems generally, including but not limited to, that: (a) digital assets are highly volatile; (b) using digital assets is inherently risky due to both features of such assets and the potential unauthorized acts of third parties; (c) you may not have ready access to digital assets; and (d) you may lose some or all of your tokens or other digital assets. You agree that you will have no recourse against anyone else for any losses due to the use of or interaction with the Protocol. For example, these losses may arise from or relate to: (i) incorrect information; (ii) software or network failures; (iii) corrupted digital wallet files; (iv) unauthorized access; (v) errors, mistakes, or inaccuracies; or (vi) third-party activities. # FAQ ### 1. **Can I receive an Airdrop or access token-gated communities while my NFT is part of an outstanding loan?** Yes, with GONDI, you can still access token-gated communities and receive airdrops, even if your NFT is part of an outstanding loan. GONDI supports Delegate Cash for airdrop claims, and Tokenproof for event ticketing. ### **2. Is GONDI compatible with Gnosis Safe?** Yes! Lenders can keep their capital in a 'Safe.' GONDI's protocol supports the ERC-1271 standard. ### 3. Can I borrow against any of my NFTs? Not all NFT collections are whitelisted at GONDI. Visit [Whitelisted Collections](/gondi-v3/whitelisted-collections) to find the full list of collections you can use as collateral. ### 4. How do I enable instant refinancing for my loan as a borrower? Instant refinancing is enabled by default, so you do not have to worry about it! ### 5. How can I refinance outstanding loans? Identify those loans whose terms you are willing to improve, and go ahead and do it. You must transfer the principal + accrued interest to the existing lender. If the new principal is higher than the original one, that difference will be transferred to the borrower. ### 6. Do I need to pay gas fees to list my items? Not at all. Listings are gasless as they are signed off-chain. ### 7. How do liquidations work? When a single-lender loan defaults, the lender can claim its collateral. If the loan has multiple lenders, the lender with the largest principal can buy out other tranches within 48 hours. If no buyout occurs, the NFT would be auctioned programmatically, and the proceeds would be distributed pro-rata to all lenders, prioritizing senior tranches. For a deeper dive, visit [Liquidations, Buyouts & Auctions](/gondi-v3/liquidations-buyouts-and-auctions). ### 8. Do I need a balance available to make offers to listings? You can make offers to listings even if you do not have enough capital at the time. These offers will be hidden until that changes (this is automatic). ### 9. Do you support loans against ERC-1155s? Yes. ERC-1155 must be vaulted in order to be used as collateral on GONDI.