Understanding Fees on Collateral Network: A Comprehensive Guide
Hello Collateral Network Community!
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We’re excited to announce that we’ve just released a new video on our YouTube channel that delves into the fee structure of the Collateral Network platform. If you’re more of a visual learner, you can watch the video (https://youtu.be/zombuxZsYMg).
Why Fees Matter
Understanding the fee structure is crucial for both lenders and borrowers on any platform. It’s especially important in a decentralised ecosystem like Collateral Network, where transparency and fairness are key. So, let’s break down how the fee system works on our platform.
Fees for Non-COLT Token Holders
If you’re not a COLT Token holder, the fees are straightforward:
- Borrowers: 2.5% of the loan advance
- Lenders: 2.5% of the loan advance
Reduced Fees for COLT Token Holders
Holding COLT Tokens comes with its perks, including reduced platform fees. The amount of reduction depends on the number of tokens you hold:
Visionary (75,000+ COLT Tokens)
Visionaries do not pay any fees, whether they are borrowers or lenders.
Mogul (10,001 to 74,999 COLT Tokens)
Moguls enjoy reduced fees of 1.5%, meaning they pay a platform fee of 1% whether they are lending or borrowing.
Insider (1,000 to 9,999 COLT Tokens)
Insiders have a reduced fee of 1%, translating to a platform fee of 1.5% for either lending or borrowing.
Community Pot for COLT Tokens Staked
A percentage of these platform fees goes into a community pot, which is then distributed as returns on COLT Tokens that are staked. This creates an additional incentive for token holders.
The Importance of Understanding Fees
Knowing the fee structure can help you make informed decisions and maximize your benefits on the Collateral Network platform. It also adds a layer of transparency that is essential in the world of decentralized finance.
What’s Next?
We’re always looking to provide content that benefits our community. Let us know what you’d like to see in our next video or Medium post!
Useful Links
https://twitter.com/Collateralnwk
Thank you for being a part of our growing community. If you have any questions or suggestions, feel free to leave them in the comments below or reach out to us on our social media channels.
Best regards, The Collateral Network Team
