CollaFi Litepaper
CollaFi is a peer-to-peer NFT lending and borrowing platform built for Hedera. It gives NFT holders access to HBAR liquidity without selling their assets and gives lenders the opportunity to fund loans backed by NFT collateral.
CollaFi stands for Collateralized Finance: "Colla" refers to collateral and "Fi" refers to finance.
The problem
- NFT holders often need to sell their assets to access liquidity, giving up future utility and potential upside.
- Hedera has historically had limited infrastructure for NFT-backed loans.
- HBAR holders have limited ways to earn returns backed by on-chain assets.
The CollaFi model
Every loan begins as a direct offer from a lender and is accepted by a borrower. CollaFi does not use algorithmic pricing or protocol-owned lending pools.
Loans use:
- HBAR as the lending and repayment asset.
- An NFT from a supported collection as collateral.
- A fixed seven-day term.
- A collection-specific interest rate.
- CollaFi-controlled escrow for the NFT during the active loan.
For lenders
- Browse supported NFT collections.
- Create one or more HBAR loan offers.
- Wait for a borrower to accept an offer.
- Claim principal and lender interest after repayment, or claim the NFT after default.
Lenders choose their offer amounts. CollaFi does not impose a maximum loan-to-value ratio.
For borrowers
- Select a supported NFT from My NFTs or open its collection.
- Take the highest eligible offer through Instant Loan, or choose an offer manually.
- Approve the transfer of the NFT to escrow.
- Receive the loan proceeds in HBAR.
- Repay principal and interest within seven days to recover the NFT.
If the borrower misses the deadline, the loan defaults and the lender becomes eligible to claim the collateral.
Fees
| Fee | Typical amount | Paid by |
|---|---|---|
| Offer creation | 2-5 HBAR per offer | Lender |
| Loan acceptance | 1.75% of principal | Borrower |
| Lender interest | Commonly 3%-6% of principal | Included in repayment |
| Platform interest | Commonly 1%-2% of principal | Included in repayment |
| Default claim | 5-20 HBAR, based on principal | Lender |
Live collection terms are shown before a transaction is approved. See the Fees guide for examples.
Built for Hedera
CollaFi uses Hedera's native token and account functionality for HBAR payments, NFT transfers, allowances, token associations, and escrow operations. Hedera provides predictable network fees and consensus finality without requiring CollaFi to deploy custom lending smart contracts.
Integrations
- Wallets: HashPack and WalletConnect-compatible wallets.
- Market data: Hedera NFT marketplace APIs, including SentX where available.
- NFT media: Hedera Mirror Nodes, IPFS gateways, and compatible media CDNs.
Points and rewards
Eligible platform activity can earn points. Points can be used to claim available NFT rewards.
- Points are non-transferable.
- Points are not tokens, securities, or financial instruments.
- Points have no monetary value.
- Reward inventory and costs can change.
- CollaFi can modify, suspend, or discontinue the program.
Roadmap
| Phase | Focus | Status in source document |
|---|---|---|
| 1 | Foundation and architecture | Completed |
| 2 | Platform development | Completed |
| 3 | Testnet and lifecycle testing | Completed |
| 4 | Mainnet internal testing | Completed |
| 5 | Pre-launch marketing | Completed |
| 6 | Mainnet launch | In progress |
| 7 | Collection, feature, and volume growth | Upcoming |
Team
CollaFi is a W3B Studio product built by a team with experience in Hedera and Web3 development.
- Wis3m4n: Founder
- Augustine: Developer / CTO
- N0n Fung1bull: Marketing and Communications Manager
- Alvaro: Community Manager
Learn more
- Read the complete Whitepaper.
- Review the Risk Documentation.
- Visit CollaFi.
Note: This litepaper is informational and does not constitute financial, investment, legal, or tax advice.