Alandia Strategy Guide
Alpha Club Exclusive: Learn how to lend on Alandia like a pro
Welcome back to the Club, gov!
I discovered Alandia right as the NFT market began to really heat up in early April and the timing couldn’t have been more perfect.
Once I began to test the protocol out, I realized the potential it had. It provided a way to earn passive income and gain exposure to the NFT market without having to actively collect or flip NFTs.
But there was a learning curve to using the protocol – especially when it came to creating strategies that were repeatable and profitable. And there was little to no guidance on how to use a protocol like Alandia.
So I decided to make one.
This guide summarizes what I’ve learned over six weeks of using the protocol everyday and it’s a major alpha leak. You’ll learn my strategic guidelines and we’ll demo some examples to help you feel confident understanding and navigating Alandia as a lender.
We promised it, and here it is: the Gov Club Alandia Strategy Guide.
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.