Zharta is a startup with two NFTFI protocols: the NFT-backed lending protocol and the NFT renting protocol.
Zharta's lending offer allows holders to get instant liquidity from their NFTs without selling them and earn interest by providing liquidity to lending pools.
Zharta's renting offer allows LOTM (Legends of the Mara) players to rent assets, enhancing their gaming experience, and Otherside asset holders to earn rental income by renting out their idle assets.
NFT Lending
NFT's core collateralized lending service consists of instant loans made through a Peer-to-Pool model.
APR (Annual Percentage Rate) is the annual cost of credit calculated as a percentage of the loan amount.
If a borrower uses multiple NFTs as collateral, the APR on the loan is defined as a collateral-weighted average of the APR.
By combining Pro-Rata APR, Multi-Tier and Trait Boosts features, Zharta offers some of the most flexible loan terms available in Peer-to-Pool lending:
- Pro-Rata feature allows borrowers to pay only for the amount of time they have used before repayment (minimum 7 days). In other words, if they repay the loan early, they will pay less.
- Multi-Tier feature allows borrowers to choose different combinations of APR and LTV depending on the maximum loan term. The shorter the term, the higher the APR and LTV, and vice versa. Zharta have designed three tiers to meet borrowers' specific goals. The fast 7-day tier is designed to allow borrowers to maximize the benefit of their NFTs over a short period while charging a higher APR. This option may be ideal for flippers with limited assets. On the other hand, the 90-day tier offers a lower LTV but is significantly more economical, presenting a good opportunity for borrowers with long-term prospects and sufficient collateral to easily get the value they need.
- Appraisal Model with Trait Boosts. Zharta's valuation model uses a combination of floor prices and trait boosts to estimate the value of collections and individual NFTs. Currently, their primary source of this critical data is Reservoir, which aggregates information from some of the most widely-used NFT marketplaces. In addition to Reservoir, they utilize four other data sources to ensure real-time reliability and accuracy. This approach ensures that our evaluation system remains robust and constantly updated. Trait Boosts are selectively applied to certain traits in a given NFT collection, typically coinciding with rarer and more valuable traits. Accordingly, NFTs with such traits have a higher value. The value of rare NFTs is calculated by multiplying the floor price of their collection by the enhancement factor associated with the most valuable trait. Conversely, "common" NFTs in a collection are valued at the standard collection price.
Loan-to-value
The loan-to-value (LTV) ratio is a financial metric used to express the relationship between the value of the loan and the value of the underlying asset.
For each supported NFT collection, the LTV ratio is determined based on Zharta internal risk model. This model takes into account various factors, including the risk profile of each NFT collection, the volatility of its price over different time periods, and the prevailing conditions in both the credit and secondary markets. Given all of these factors, the model dynamically adjusts the LTV to reflect the most current market conditions for a particular NFT collection. In this way, all of the loans are risk-adjusted in real time.
If a borrower uses multiple NFTs as collateral, the LTV of the loan is determined as a weighted average of the LTV of the collateral. The collateral value (CV) for each NFT is determined using a Appraisal Model.
NFT Renting
LOTM's assets are unequally distributed among users, and users themselves have an unequal amount of time and interest in the game. In addition, neither party may want or be able to buy or sell these assets.
Zarta solves this problem by connecting users who need LOTM assets they don't have with users who have LOTM assets they don't need. You can access assets without buying them, or profit from your assets without selling them or playing LOTM.
When you list an asset, the protocol puts it into a safe vault and from there transfers it to the players who rent it. With self-delegation, instead of your assets sitting idle while you wait for someone to rent them, you can use them yourself - all without having to unlist or withdraw them.
Keep in mind that if you don't unlist an asset before Self-Delegating, it can be rented at any time, which can interrupt whatever you were using it for.
With Zharta you can Batch listing and renting
