Frequently Asked Questions
Using assets on Pond to unlock your liquidity
On Pond it's possible to use both non-fungible (NFT) and fungible tokens from all our verified tokens. These assets can be used to as collateral for a loan or can be put up for sale. Assets can be either bundled or can be put up individually. Pond has a unique approach which allows you to simultaneously set loan and sale conditions for your asset or bundle of assets.
If one of these set of conditions is met, the other automatically becomes ineligible to interact with.
All projects are manually verified by our team. To verify a collection, submit a request in our Discord server.
When deciding on the health of a loan Pond uses different metrics to identify the quality of the loan. One of those metrics is LTV (Loan-to-Value), which can help you when deciding whether to provide a loan or not. Loan-to-value is a very common metric when lending and borrowing assets. Within Cardano NFTs we define this metric as the base amount value of the loan, compared to the floor price or value of the asset.
For example, if the floor price of an asset would be 10,000 ADA, and a borrower would put out a loan for 8,000 ADA, then the LTV would be 0.8. LTVs lower than 0.7 are usually considered as good loans, however monitoring the stability of this LTV metric is crucial to determine whether it's a good loan or not.
Everyone can borrow ADA on Pond, using their assets as collateral. Only assets from verified tokens are supported.
Everyone can lend assets on Pond. However, owners of our Pond NFT collection benefit from reduced fees. The fee drops from 1.25% to 1% for Pond NFT holders.
Pond introduces the unique feature called super duper loans. These loans allow you to buy an NFT from a marketplace for a partial amount and only pay the full amount later. For example, if an NFT is listed for sale for 1,000 ADA, and there's an active loan offer for 850 ADA, then you could buy the NFT right now with 150 ADA of your own, and 850 ADA from the loan offer.
Instead of receiving the NFT, you receive an active loan of 850 ADA which you can repay at a later date to receive the NFT.
This event is commonly known as a default. Lenders should be aware of the risk of defaults. A lender's only protection against defaults is being able to claim the asset or bundle of assets that was used as collateral for the loan.
A service fee is charged for various actions as follows:
- Regular Loans and Sales: 1.25%
- Buy now, Pay later: 2%
- Renting: 2%
In all cases, there is a minimum service fee of 4 ADA or 1 stablecoin depending on the currency used in the transaction. Holders of our Pond NFT collection also benefit from reduced fees.
Using Pond NFTs to further boost your liquidity
At Pond we believe that financial services should be accessible, inclusive, and transparent for all individuals. By combining the power of Cardano's robust blockchain infrastructure and the principles of decentralized finance, we aim to disrupt the traditional lending landscape. In our journey to do so, we've released our own NFT collection.
Every NFT of this collection enables the holder to participate in our lending ecosystem and grants unique benefits.
There are several benefits already available right now:
- fees on regular loans and sales are reduced from 1.25% to 1%
- fees on super duper loans are reduced from 2% to 1%
In addition, we have several benefits which we aim to provide soon:
- trophy rewards based on activity on Pond
- early access to all future features of Pond
Pond NFTs are currently only available to be bought on secondary marketplaces, such as jpg.store.