Non-fungible token (NFT) lending protocol Gondi went live on Tuesday after raising a $5.35 million seed round led byHack.vc, the firm told CoinDesk.

Gondi allows lenders and borrowers to capitalize on the value of blue-chip NFT collections on the Ethereum blockchain. Lenders can put up their NFTs on the platform for a fixed rate, while borrowers can use the NFTs as collateral or for use on NFT-based financial applications.

Gondi says that borrowers on its platform only pay interest based on the outstanding loan duration. Moreover, borrowers benefit from instant refinancing, ensuring they always get the best loan terms available, even after having initiated the loan.

Borrowers can use their NFT assets as collateral to request a loan from the open market.

The seed round for Gondi developer Florida Street was co-led by Alex Pack atHack.vcand Rodolfo Gonzalez at Foundation Capital, with participation from Dragonfly Capital, Pantera Capital, and 6th Man Ventures, among others.

“We are thrilled to have co-led Florida Street's seed round, and we are excited about the solutions they are bringing to Web3 users. Gondi's instant refinancing will enhance the NFT lending market, allowing borrowers to access more affordable credit and fostering a growing market,” said Alex Pack, Managing Partner atHack.vc, in a message to CoinDesk.

Some blue-chip NFT collections that have partnered with or been whitelisted on Gondi at launch include CryptoPunks, AutoGlyphs, Bored Ape Yacht Club, Chromie Squiggle, and Fidenza, among others.