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How Does It Work?

Collateral Network has redefined decentralized finance (DeFi) by acting as a ground-breaking Software-as-a-Service (SaaS) protocol that connects lenders and borrowers, without itself being a lender or borrower. This innovative platform brings transparency and empowerment to the lending and borrowing arena. Here's a comprehensive insight into its unique features and functionalities:
  1. 1.
    Interface and Protocol Integration Collateral Network employs a user-friendly web-hosted interface and a decentralized protocol, enabling straightforward interaction with underlying smart contracts for seamless peer-to-peer transactions involving various asset classes.
  2. 2.
    Asset Utilization and Fractionalization with the ability to mint assets into tangible T-NFTs, users can leverage physical and digital assets such as real estate, luxury items, NFT’s and fine art. Fractionalization ensures flexibility in lending against different assets, enabling businesses and individuals to maximize their holdings.
  3. 3.
    Lending and Borrowing Process Lenders propose terms, and borrowers customize their experiences. With fractionalized Loan Offerings and the unique Bid and Buy option, users have the freedom to choose favourable terms from Lender offerings to fulfil their borrowing requirements.
  4. 4.
    Physical Assets Handling Collateral Network offers added services such as valuation tools and securing of physical assets via the platform until such times that the loan has been discharged, adding a layer of trust and validation.
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    Non-Custodial Approach Emphasizing complete control over private keys and assets, Collateral Network's non-custodial nature aligns with decentralized principles.
  6. 6.
    KYC and Legal Compliance In partnership with external parties, optional KYC services within the platform maintain legal compliance, credibility, and security.
  7. 7.
    Fees Structure and COLT Token Benefits an adaptive fee structure is complemented by special privileges for COLT Token holders, including access to new loan opportunities, reduced platform fees, trading platform, and early access to distressed assets.
  8. 8.
    Governance Model and Risk Management Decentralized Governance engages the community, while access to external valuation tools and asset storage options safeguard investments and maintains transparency.