Lending Pond

A decentralized lending and borrowing platform where borrowers list Cardano NFTs as collateral for an ADA loan and lenders choose which loans they want to fund.

Lending Pond, also just called Pond, is a peer-to-peer lending marketplace that allows Cardano NFT holders to unlock the value locked up in their NFTs by locking those NFTs up as collateral for loans. The whole process is done via smart contract and NFTs are locked up in the smart contract for the specified amount of time once the loan is issued. If the loan is not repaid in time then the lender automatically has the NFT collateral deposited in their wallet.

How Lending Pond Works

Borrowers on the Pond protocol can only list NFTs from approved projects. These borrowers, looking to unlock the value locked in their NFT, create the loan offer around their NFT, setting the interest rate, duration of the loan, and the payment time frame.

Lenders can view these NFT collateral offering, along with the terms of the requested loan, on a liquidity page and select which, if any, they want to fund. Each loan has a colored “Send Loan” button beneath it and the color is indicative of how collateralized the loan is. Green buttons indicate a highly collateralized loan, i.e. the borrower is requesting much less ADA than the prospective market value of the NFT collateral, and yellow and red buttons indicate loans where the borrower is looking to borrow closer to the full amount of the value of the NFT offered up as collateral.

Once a loan is granted the NFT is locked in a smart contract for the allotted amount of time and the loan is sent to the borrower. The loan and interest then need to be repaid to the smart contract, in full, prior to the end of the loan’s term to unlock the NFT. Upon doing so the loan and interest are sent to the lender and the NFT is returned to the borrower.

If the borrower defaults on their loan then the NFT is sent to the lender's wallet and they get to keep the NFT.


A 2% fee of the loan amount is charged to the lender and they send this, along with the loan amount, when funding a loan.

In order to participate as a lender on Lending Pool lenders must be verified holders of a Pond partner projects.

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