Yo, gov!
The Club has moved to our own custom website: www.governorsclub.xyz.
Even though we've moved, our content and dedication to being the definitive source to upgrade your Algorand DeFi and NFT game remain unchanged!
We'll keep this substack accessible for a short period of time, but we encourage you to update your bookmarks and links to our new domain as soon as possible to continue your Algorand journey.
Thank you for your continued support, and we look forward to seeing you at the new and improved Club!
Gov Tip: If you’re new to Algorand, make sure to check out our Algorand Beginners Guide to begin your Algorand journey!
What is Alandia?
Simply put, Alandia is a lending protocol that directly connects borrowers and lenders allowing borrowers to take an ALGO loan against their NFTs.
This process is pretty simple: borrowers post their NFT(s) with desired ALGO loan amount, interest rate, and lending period. Prospective lenders then submit their bid on the package with the option to offer more or less ALGO, higher or lower rates, and shorter or longer periods.
Gov Tip: At this time, Alandia only allows ALGO to be lent and NFTs to be posted as collateral; however, in the future the protocol plans to integrate ASAs as well.
Once the borrower agrees to a lender's terms, the NFTs are held in an escrow smart contract until the lending period is over or until the borrower pays back the loan (whichever comes first). If a borrower doesn’t pay back their loan before the period is over, the lender can foreclose on the package which will send the NFT(s) from the escrow account to them.
For providing this service, Alandia charges a 10% fee on the loan's interest when a loan is repaid. For example, if you lent 1,000A at 10% interest, the borrower would repay 1,100A. Alandia receives 10% of the interest. So, in this case you would receive 1,090A in total while Alandia receives 10A.
Gov Tip: Check out Alandia’s FAQs if you want to learn more about the protocol.