What is Collateral Network? All You Need to Know About COLT

Traditional loan services provide liquidity to individuals and businesses that seek the funds. They analyze the customer’s credit score and determine how much they can repay and how much can be loaned out. The Collateral Network, with the aid of blockchain technology, gives a twist to the traditional loan service by introducing asset-backed loans. This article will cover what Collateral Network is about, how it works, and its token system.

What is Collateral Network (COLT)?

Collateral Network is a first-of-its-kind De-Fi platform functioning as a software-as-a-service (SaaS) protocol that links borrowers and lenders. The innovative technology offers users versatile and affordable loan products, making it easy for borrowers worldwide to unlock cash from their physical and digital assets stored on the blockchain.

This is an upgrade to the traditional lending system, which relies heavily on the credit score and creditworthiness of the borrower. Blockchain technology offers enhanced security and transparency, enhancing the borrowing process for users and facilitating seamless access to funds from blockchain-backed assets.

Collateral Network opens a door of new possibilities to cryptocurrency holders. The platform allows users to become their own bank using their assets to generate funds without requiring a third party like loan companies or banks. Collateral Network seamlessly combines NFT and blockchain technology to offer fractional loans at a stated fixed interest rate.

What is most exciting about Collateral Network is its unique approach to asset-backed lending. The asset-backed lending global market is estimated at $4.5 trillion, and the forecast predicts it will increase to $6.9 trillion in the next few years. The platform allows borrowers to use the liquidity of their assets without having to sell or deal with several bureaucratic processes.

The platform’s services are not restricted to only individuals. Businesses can also use the platform’s services to unlock capital using their physical and digital assets. The Collateral Network is opening doors and making the crypto economy more accessible and profitable for everyone by changing how the public and companies interact with their assets.

How Does it Work?

The Collateral Network is a web 3.0 peer-to-peer decentralized lending platform that allows people to utilize real-world assets like fine wines, art, real estate, vintage cars, and other assets as collateral to borrow money.

The borrower must send the physical asset to Collateral Network to gain access to these loans. There, the COLT team confirms the item’s authenticity and values it. The asset is then stored in the vault for the duration of the loan. An NFT representing the physical asset will be minted and fractionalized. The NFT will be a 100% asset-backed NFT used to get the borrower the needed funds.

The assets are evaluated using AI, ensuring the process is fair and accurate. The Collateral Network also uses fractional lending. This means that COLT fractionalized your NFT into smaller arts, allowing other users to lend smaller amounts of liquidity and get weekly fixed payments in return.

Main Features of Collateral Network

COLT is changing the financial world by making long-term wealth generation accessible to anyone by increasing access to financial opportunities and giving users greater control over their assets. Platform users can now access loans easily through their assets anywhere in the world.

This means that users can use their assets to acquire loans and create wealth on their terms. COLT connects borrowers and lenders without being a lender or borrowers themselves. This ensures transparency and empowers the lender and the borrower.

Fractionalization of Assets

The Collateral Network’s platform ensures that each asset is minted into a Tangible Non-Fungible Token (T-NFT). T-NFTs are non-fungible tokens that represent the ownership of real-world assets. Tangible NFTs connect the digital ownership record to physical objects and indicate the ownership of real and unique items in the physical world by issuing digital certificates of ownership.

The Collateral Network breaks these NFTs into smaller pieces, allowing users to use these smaller NFTs as collateral to secure loans. This service is not available only to individuals, as it is available to companies and businesses needing to release funds from their assets within the business.

Loans

Unlike traditional loans that analyze the user’s income and credit history, the Collateral Network allows borrowers to use their physical assets to acquire loans. This means users can avoid selling their assets or taking loans against future incomes.

Trade

COLT Users will now be able to invest and trade NFT-backed loans. The platform has a specialized marketplace that allows users to buy, sell, or trade digital assets according to their financial needs and investment plans.

Staking

Token holders who wish to earn passive income and believe in the project can decide to stake the platform’s base token, $COLT. The passive income earned will depend on how much $COLT is staked and how long it is staked. The Annual Percentage Rate (APR) ranges between 5.5% to 14.8% per year.

Marketplace

This platform connects borrowers to investors, allowing users to exchange and acquire asset-backed fractionalized NFTs on the COLT marketplace. Users can spread their portfolios by purchasing fractions of alternative assets rather than allocating 100% of their capital into a single asset, leading to a more diversified lender’s portfolio. The marketplace serves as the connection hub for the ecosystem, fostering peer-to-peer transactions and diversification of portfolios.

Auctions

$COLT holders can access collateral’s private auctions of distressed assets. These auctions will be digital in the metaverse and physical auctions, allowing investors to acquire assets below their normal market value. These auctions increase user engagement in the ecosystem, boosting the number of users and increasing the flow of funds.

Crowdlending

Interested investors can offer fractional loans to borrowers for an agreed fixed interest rate placed by COLT against NFTs backed by relevant assets. This represents the principles guiding blockchain technology and Collateral Network’s ethos.

Trade and Investment

When investors need to unlock capital, the platform’s marketplace allows them to offer their existing loans or entire portfolios to others. This is a convenient and easy way for capital reallocation, making funds readily available for the investor. This strategy helps investors mitigate risks and creates a balanced investment portfolio.

Benefits of Collateral Network

Most individuals do not know the value of their assets and how their assets can be the most flexible, comfortable, and fastest funding option available when cash is needed urgently. COLT promises a platform that will play a key role in the next phase of the digital world, merging with the financial world. The platform offers users the following benefits:

Fast Turnaround

On the Collateral Network platform, loans are a reliable, quick, and easy way to access cash without undergoing credit checks, credit history, or full financial disclosure. Users can earn USDT, USDC, BTC, or other forms of digital currencies from their assets within 24hrs.

Asset-backed Loans

Traditional loan providers require the user’s credit score before acquiring cash. COLT loans, on the other hand, is an asset-backed loan that uses physical or digital assets as collateral for the user’s line of credit.

Privacy

The digital world and the world at large values privacy. COLT realizes the importance of privacy to individuals and businesses and that some decisions should be yours alone and should not be made publicly. With COLT, users can use their asset’s value without leaving a footprint on their credit profile. Users can also get asset-backed loans without carrying out credit checks or affecting accountability calculations, which ensures your financial information remains unknown to anyone.

Transparency

COLT values transparency and the platform features a transparent fee structure and terms that welcome users to a new lending world. All information submitted is stored in the metadata of the NFT and is secured on the public blockchain, which is immutable.

Pocket-Friendly

Borrowers can acquire loans against their assets at competitive rates at a term they deem fit, and investors can provide the funds to these loans and generate passive income by the side.

What is Collateral Network Peer-to-peer Loan

Borrowers on the Collateral Network platform can easily access money and acquire loans using their physical and digital assets. The service is available for companies and groups that need to free up funds from assets they own or gather funds for acquiring assets.

The Collateral Network allows borrowers to borrow against the following items:

• Property
• NFTs
• Luxury Watches
• Gold Bars
• Fine Wines
• Fine Art
• Diamonds
• Collectibles
• Business Holdings
• Stocks

The COLT team of experts ensures that all assets, physical or digital, are accurately valued, making sure that the lender’s investment in the loans offered does not exceed a specified loan-to-value (LTV), which enables COLT to dispose of the assets if default in repayment occurs, without penalty or loss of value to the borrowers.

The platform also ensures the lender can disburse the required amounts with fair and transparent valuations. Users who seek to acquire loans must understand that borrowing against these assets means they serve as collateral to acquire the loan and can be retained by the lender for resale on the COLT marketplace if the loan is not repaid.

Collateral Network Governance

The team’s group of experts will run the Collateral Network, but each token issued will come with governance in the form of voting rights. Holders of the native token $COLT will be able to vote on a range of issues concerning the platform and the ecosystem, including new asset classes, currencies accepted, and upcoming listings.

COLT Token

Aside from powering the ecosystem, $COLT rewards users and unlocks other features on the platform, like discounts allowing holders of $COLT to receive discounts on a tier-based system determined by how many tokens they possess. These discounts will be used on trading fees for investors and borrowing fees for borrowers.

Colt token holders who believe in the project and are in for the long term can decide to stake the $COLT token and earn passive income. The passive income earned is determined by the number of $COLT tokens the user possesses and how long the user plans to stake the token. The APR (Annual Percentage Rate) ranges from 5.5% to 14.8% per annum.

COLT Tokenomics

The Collateral Network token $COLT has a total market supply of 1,400,000,000 available, and it is to be split in the following ways:

• 38.0% is allocated to presale
• 15.0% is allocated to listings & staking
• The marketing team received 13.0% of the total supply
• The team gets 12.0%
• 12.0% is allocated to the Reserve treasury
• 5.0% for Burn event
• 3.0% for the legal and advisory team
• 2.0% for partnerships.

Token Price Phases

The price phases for the token will be broken down into 7 stages, each stage with its own COLT price and allocation. The presale period will see the price of the COLT token stay at stage 6 for the remaining presale period. The different stages are:

Where to Buy COLT?

COLT is still in its presale stage and is available on its presale portal.

Take Action

To buy COLT, open the presale portal and sign up. Specify the amount of $COLT tokens you want to buy, select the cryptocurrency to be exchanged for $COLT, and click on buy now. Once that is done, you’ve become an official COLT token holder.

News on COLT

The Collateral Network is a buzzing Project and has attracted the attention of numerous investors, gathering funds for the project. Analysts predict the project’s rapid growth once listed, making its current value of $0.014 a good deal for investors looking to capitalize on the lending platform.

Is COLT a Good Investment?

Collateral Network is the world’s first digital peer-to-peer loan platform offering flexible and affordable lending products that are an alternative means for creating liquidity using physical or digital assets. The application of blockchain technology proposes a new asset-backed model, allowing companies and individuals to utilize the value of their assets without having to sell them.