Gondor v1 lets Polymarket users borrow across portfolios

Gondor launched Gondor v1, a cross-margin account that lets Polymarket users borrow against the value of their entire portfolios. Private testing begins next week and the company plans a public rollout in September.

Users deposit Polymarket shares into a unified, non-custodial margin account. The account issues a credit line that can be used like cash to buy additional positions directly on Polymarket.

Gondor’s beta, released seven months ago, allowed borrowing against individual positions. Gondor v1 instead assesses the health of a user’s full account and uses the combined collateral to determine available credit. The company compared the approach to prime brokerage credit, where lenders evaluate a client’s diversified holdings.

The startup wrote that isolated leverage exposed lenders to high gap risk in binary markets, where a single outcome can rapidly erase value. “Cross-margining solves the core problems of isolated leverage,” Gondor wrote, adding that isolated systems required tight limits, excluded many markets and capped exposure.

During the beta, Gondor reported many markets could not support borrowing and that lending had to be restricted to the most liquid positions. The team said pooling collateral across a user’s portfolio can reduce those constraints and allow more markets to support borrowing at lower rates.

Gondor reported more than 150,000 waitlist sign-ups for its beta. The startup raised a $2.5 million seed round from investors including Prelude, Maven 11 and Castle Island Ventures.

Other firms have tested similar features: earlier this year, a cross-margined portfolio system was trialed for a limited set of traders. Regulators have taken an interest in prediction markets; the Commodity Futures Trading Commission has described them as an innovative category of derivatives that can aid price discovery, while some state regulators have pushed back.

Gondor did not disclose interest rates, margin-call mechanics or liquidation thresholds in its announcement. The company said further technical and risk-management details will be provided during the private testing phase ahead of the September launch.