FAQ – Lending V2

What the FAQ?

What is Zharta?

Zharta is a DeFi, Web3 startup with three NFTFI protocols: an NFT-Backed Peer-to-pool Lending protocol, an NFT Renting protocol and now NFT-Backed Peer-to-peer Lending protocol.

Zharta’s Lending Offer allows holders to get liquidity from their NFTs without selling them and for anyone to earn interest by financing our loans.

Our Renting Offer enables LOTM players to rent assets, enhancing their gaming experience, while enabling Otherside asset holders to earn renting fees by renting out their idle assets.

What are Zharta's primary advantages for borrowers?

• Tailored offers - Find dozens of offers for your assets and choose the one that fits your needs!

• Pro-Rata APR & Refinance Pro - At any point during your loan you can repay the loan or take new offers to improve conditions or extend the loan.

• Improve conditions - The conditions of your loan can be improved anytime!

• Mobile - Manage your loans anytime, anywhere! Our scalable UI will adapt to your phone, tablet, laptop, or desktop.

• Lowest gas fees - Our platform has the lowest gas fees in the market.

What are Zharta's primary advantages for lenders?

• Open offers - Make your open offers as broad or as specific as you want. Make an offer for a whole collection or specific traits, control your exposure by defining a maximum capacity, etc

• Refinance Pro - Make offers for ongoing loans. Both borrowers and lenders can accept them and transfer the loan to you.

• Sell the loan - Exit your position whenever you want.

• Mobile - Manage your loans anytime, anywhere! Our scalable UI will adapt to your phone, tablet, laptop, or desktop.

• Lowest gas fees - Our platform has the lowest gas fees in the market.

Which browsers and devices are supported?

Currently, we support desktop devices, tablet and mobile devices (android and iPhone). We recommend Google Chrome or Firefox for a better experience.

Does Zharta charge Borrowers a fixed fee?

No.

Can I borrow/lend directly from my Gnosis Safe and other smart contract wallets?

Yes. Our protocol supports EIP-1271, allowing for signature verification when an account is a smart contract. Zharta's smart contracts support Gnosis Safe multi-sig, but the dApp is not yet supported.

Does Zharta take custody of the NFTs I use as collateral for loans?

No. Zharta doesn't get custody of your assets. NFTs used as collateral are held in a smart contract escrow. This means that the assets are held by the smart contract itself, and are always subject to the pre-agreed business rules of the loan.

What are smart contracts? How do they work?

Smart contracts are programs stored within the blockchain that work as self-executing contracts. Once the two parties agree upon the terms, these are coded into the contract and deployed to the blockchain, thus rendering the transaction irreversible, traceable, and transparent.

If the value of the collateral I used for my loan decreases, could my assets be liquidated?

No. Our loans offer full protection from liquidation during the term of the loan. Your loan will only default if you fail to pay on time.

If I repay early, will I still pay interest for the full, original loan term?

No. Interest is charged pro-rata – it accrues on a per-day basis. You'll only be charged for the days that elapse until you repay the loan.

Can I use more than one NFT as collateral for the same loan?

In V2 we still don't allow bundles. Stay tuned.

My asset is committed to an APE Staking position. Will using it to get a loan affect my earnings?

No. Our Smart Contract escrow is APE Staking compatible — your asset will continue earning APE normally. You will, however, have to wait until you repay the loan to claim your earnings or alter the asset’s staking position.

Is Zharta a DeFi company?

Yes. Zharta allows for non-custodial loans on top of decentralized smart contracts to take advantage of the strength, transparency, and security of the blockchain networks where your assets are located.

How is the liquidation process handled?

Liquidations only happen when a borrower fails to repay their loan on time. After the maturity date Lenders can claim the colateral.

To make sure you don't miss a payment make sure to add the repayment date to the calendar. Make the payment on time or refinance your loan before the maturity date.

Which collections can be used as collateral at Zharta?

You can check them out here. More collections coming soon!

How do I ask Zharta to list a new collection?

We are always evaluating the market and adding new collections according to our metrics. If you would like to see your favorite collection on our platform, please fill out this form and we will make sure to study it.

How can I get an instant loan against my NFT?

We are working to ensure all supported collections have base offers. there can be exceptions due to available liquidity and market conditions. Check the tutorial on how to get a loan.

How can I become a lender?

Place offers to listings, active loans or create an open offer. If your offer is competitive a borrower will then accept it.

Which wallets can you use to connect to Zharta?

We currently support MetaMask, Coinbase, and Rainbow Wallets. If you prefer to use a different type of wallet, you can use WalletConnect to do so.

On which networks does Zharta operate?

We currently only operate on the Ethereum Network, but we are working on changing that. Stay tuned!

Which cryptocurrencies does Zharta support?

At the moment our lending pools support ETH and USDC.

Is Zharta safe to use?

When building our blockchain protocol, we ensured our smart contracts were 100% secure so there was no possibility of obstruction. Even our programming language, Vyper, was chosen with efficiency, simplicity, and security in mind. Finally, because our users' peace of mind is our top priority, all of Zharta's smart contracts are audited.

Where can I find more information about Zharta?

Website | Discord | Telegram | Twitter | Medium

Does Zharta have Terms and Conditions?

Yes. You can find them here.