Lending Pond connects Borrowers with Lenders through an open marketplace where borrowers can offer NFTs as collateral for ADA loans, setting interest rates and payment timeframes for lenders to accept.
Lending Pond allows individuals borrow against their NFTs and unlock liquidity. Lenders may lend to the borrowers for a set yield determined by the borrower and lender. All this is driven by a Smart Contract, so the complete interaction is automatic and trustless.
Lending Pond charges a 2% fee on the initial loan value (the value before interest is calculated).
For example, if a borrower takes a 1,000 ADA loan on an NFT, the lender must send 1020 ada. Interest would be calculated on the 1000 ADA.
Currently, the interest rate is set by the borrower. A lender will then choose to accept the loan with the proposed interest rate. Listing at a higher interest rate will lead to quicker acceptance of loans.
If the borrower fails to deliver the payment in the specified timeframe, the NFT will be automatically delivered to the lender through a smart contract-driven interaction. Lending Pond currently support Nami and Eternl.
No KYC or Credit Checks.
Quick Liquidity, Wallet to Wallet.
- Pond brings DeFi by allowing Borrowers to leverage liquidity without KYC or credit checks
- Borrowers collateralize NFTs in exchange for a loan in ADA
- The NFT will be returned to the borrower as long as the loan is repaid on time
- Borrowers are able to retrieve liquidity which would have otherwise been locked in their NFT
Earn Interest, or earn NFTs.
- Pond allows lenders to lend ADA and earn a high APY
- Lenders should request an overcollateralization of NFTs before issuing a loan
- Lender will have access to a liquidity page to search collateral to offer loans on
- Lenders are protected by either earning yield or keeping the collateral