Gondi, a decentralized lending app for non-fungible tokens (NFTs), saw its total value locked (TVL) soar nearly 200% to a record $34 million, according to data from DefiLlama.
The TVL surge reflects DefiLlama’s listing of Gondi’s latest v3 update, which has been around for over two months but not tracked by the platform until December 27.
The v3 version currently has $22 million in TVL, accounting for nearly 65% of the total value of deposits.
Gondi is a non-custodial application that enables users to lend and borrow against Ethereum-based NFTs. The platform has been around for more than a year.
Borrowers can deposit their NFTs as collateral to get Wrapped Ether (WETH) or USDC, with interest accruing on a pro-rata basis, i.e., it’s calculated and earned proportionally to the time or the amount involved.
On the other side, lenders can deposit WETH or USDC to earn interest. They can access yields by initiating loans, refinancing existing loans, and submitting renegotiation offers. Lenders are able to set their own risk parameters for new or existing loans.
Gondi reports that it has over $41 million in outstanding loans, including 6.02 WETH and $21 million in USDC.
DefiLlama data shows that the most popular NFTs are Wrapped Cryptopunks, accounting for 70% of the v3’s TVL. Other popular collections include Wrapped Ether Rock (WER), Chromie Squiggle, FIDENZA, Doodle, and PPG.
On November 27, Gondi reported a record-breaking NFT loan. The unique 7-trait Punk #8348 was used as collateral for a $2.75 million USDC loan on the platform. The terms of the loan specify a period of 180 days and an annual percentage rate (APR) of 17%. The loan has an origination fee of $41,250.
Gondi described it as the largest on-chain loan against any NFT in history.
In 2024, Gondi has processed over 3,300 NFT loans, with more than 1,000 NFTs being currently locked in escrow.
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