Zharta Finance

Zharta Finance is an on-chain structured credit protocol that facilitates fixed-rate lending and borrowing. It is designed primarily for institutional clients and sophisticated investors, aiming to combine the compliance standards of traditional finance with the efficiencies of Decentralized Finance (DeFi).

The protocol operates as a peer-to-peer (P2P) system, enabling users to create and participate in customized loan offers backed by a wide range of tokenized collateral. Eligible collateral includes Real World Assets (RWAs), securities, and other digital assets.^[1][2]​

Overview

Zharta Finance provides decentralized infrastructure for structured credit through its proprietary, permissionless smart contracts. Its core function is to act as a marketplace where borrowers and lenders directly negotiate and execute fixed-rate, fixed-term loan agreements on-chain.

Within this model, borrowers gain predictable funding costs, while lenders can price risk and seek yield premiums. The protocol is designed to support a broad set of collateral types beyond typical crypto assets, extending to tokenized RWAs and securities.^[1]​

A key aspect of Zharta's strategy is its focus on compliance, positioning the protocol as a bridge between the regulated financial system and on-chain innovation. To this end, the platform incorporates Know Your Customer (KYC) compatibility into its protocols, targeting institutional capital that must adhere to regulatory standards. This approach is intended to offer a compliant yet decentralized option for sophisticated financial operations.

In operational terms, the technology emphasizes non-custodial asset management, automation, and capital efficiency. Users maintain control over their assets while engaging in lending and borrowing activities, with smart contracts handling execution and enforcement.^[1][2]​

History and Development

Zharta Finance has evolved its product offerings over time, beginning with a focus on non-fungible tokens (NFTs) and later expanding into a broader structured credit protocol. Its development history can be followed through several product versions, with multiple early iterations now classified as legacy.^[2]​

The platform’s initial entry into DeFi lending centered on the NFT market with NFT Lending V1, its first lending protocol, followed by an updated NFT Lending V2. During this phase, Zharta also created specialized protocols for particular use cases, such as Otherside Renting, a dedicated rental protocol for virtual land NFTs within the Otherside metaverse project that integrated with associated gaming experiences. In parallel, Zharta launched a rewards program called Zharta Token Rewards, built around a Zharta Token and organized into chapters (for example, Chapter 0: Genesis Token Allocation and Chapter 1: LOTM). In this program, users earn points by activity on Zharta’s renting and lending protocols, and these points are intended to convert into token airdrops at a future token generation event.^[2]​^[3] The Zharta Token is described by the project as a utility token created to reward users for real and responsible participation in these protocols, with individual token allocations determined proportionally by activity metrics such as the number, size, duration, and type of rentals, listings, loans, and deposits.^[3]​^[6]​ Points accumulated in the different chapters are designed to convert into token allocations that are distributed via an airdrop at a Token Generation Event (TGE), when Zharta Tokens are minted and can be claimed to users’ own Ethereum wallets.^[4]​^[6]​ As of early 2026, NFT Lending V1 and V2, Otherside Renting, and Zharta Token Rewards are all categorized as retired or legacy systems.^[2]​

Following these earlier iterations, the platform’s focus shifted to its structured credit offering. The current flagship product is Lending Pro V1, which represents a broader and more sophisticated implementation of Zharta’s vision for on-chain structured credit. This protocol moves beyond purely NFT-based lending to a comprehensive system capable of accommodating various digital and tokenized real-world assets. Alongside Lending Pro V1, Zharta continues to operate its NFT Renting Protocol.^[2]​

Technology and Architecture

Zharta Finance is built on a proprietary, permissionless smart contract infrastructure that underpins its P2P lending and renting markets. The architecture is designed for interoperability, enabling the protocol to support multiple blockchain networks and a variety of digital asset markets.^[2]​

This technical design provides the foundation for the protocol’s structured credit, renting, and automation features across different asset classes and chains.

Governance and Tokenomics

On-Chain Smart Escrow

A core component of the protocol is its on-chain smart escrow system. When a borrower collateralizes an asset for a loan, that asset is locked in this smart contract.

The system is designed to keep collateral "productive," meaning assets held in escrow can potentially be used for additional activities such as staking or supplemental lending to generate yield while still securing the loan. This feature is intended to improve capital efficiency for borrowers.^[1]​

Automation and Capital Efficiency

The platform incorporates features intended to automate and optimize lending operations. Its smart contracts include logic for the automatic deployment of idle liquidity provided by lenders into available loan offers that match their predefined criteria.

In addition, the architecture supports the integration of yield aggregation and auto-refinancing strategies, which are designed to enhance capital efficiency for all participants. For institutional users and integrators, Zharta provides API and white-labeling options that can automate the entire loan lifecycle, from offer creation through servicing and refinancing.^[1]​

Protocol Participants

The Lending Pro V1 protocol defines three distinct roles:

• Borrower: An individual or entity that collateralizes a digital asset to obtain a loan.
• Lender: An individual or entity that provides liquidity to fund the loan in exchange for interest.
• Liquidator: A third-party participant responsible for managing loans that have entered a default state, typically by acquiring the collateral at a discount.^[2]

Lending Mechanics

In Zharta’s lending protocol, all loan parameters are configured by the lender in a loan offer and then accepted or rejected by the borrower. These parameters include the principal and collateral amounts and tokens, the Annual Percentage Rate (APR), the loan’s maturity date or an open term, the Maximum Loan-to-Value (Max LTV), and the Liquidation LTV.^[5]​ Loans are structured as fixed-rate credit agreements, with interest determined by the APR set in the offer and accruing over the life of the loan based on its duration.^[1][5]​

Collateralization is governed by the Max LTV and Liquidation LTV parameters. Max LTV represents the maximum ratio between the loan’s principal and the value of the collateral at origination, while Liquidation LTV must be set strictly above Max LTV and defines the threshold at which the position becomes eligible for liquidation.^[5]​ A loan can default and trigger liquidation if the loan’s LTV reaches or exceeds the Liquidation LTV due to price movements, if the borrower fails to repay by the maturity date, or if the borrower does not repay within a defined call window after a callable loan is exercised. Once a liquidation event occurs, liquidators acquire the collateral, and a liquidation fee—set by Zharta at the market level and disclosed in the protocol documentation—is applied to the collateral.^[5]​

The protocol charges fees that are processed automatically by the smart contracts. Borrowers pay an upfront fee, calculated as a percentage of the principal amount, at loan origination. Lenders pay a settlement fee, calculated as a percentage of the interest earned, when the loan is repaid.^[5]​ These fees are separate from any liquidation fee that may apply when a position is liquidated.^[5]​

Products and Services

Zharta's ecosystem is organized around its active lending and renting protocols, supported by features tailored to both borrowers and lenders. The main products include the Lending Pro V1 structured credit system and a separate NFT renting marketplace.

Lending Pro V1

Lending Pro V1 is the platform's active P2P lending protocol and serves as its primary structured credit offering. It facilitates loan agreements with customizable terms that are negotiated and finalized on-chain.^[2]​

Key Features of Lending Pro V1

• Highly Customizable Offers: Borrowers and lenders can create or engage with loan offers tailored to their specific needs. Terms such as interest rates, maturity dates, and acceptable collateral types can be set and negotiated on-chain, allowing for precise risk pricing and strategy execution.^[1][2]
• Refinance Pro: This integrated feature functions as a secondary market for active loans. It enables lenders to transfer and resell their loan positions on-chain without intermediaries, providing liquidity for exiting positions, rebalancing portfolios, or adjusting rates before a loan's maturity.^[1]
• Diverse Collateral Support: The protocol is designed to be asset-agnostic, accepting a wide range of tokenized assets as collateral. Supported collateral includes mainstream digital assets, NFTs, and tokenized Real World Assets (RWAs) and securities, aiming to address the needs of institutional finance.^[1]
• Mobile Accessibility: The protocol offers mobile access, enabling users to manage their NFT-related loan and renting activities from mobile devices.^[2]

NFT Renting Protocol

Separate from its lending services, Zharta operates a P2P marketplace for renting NFTs. This protocol allows NFT owners to generate passive income by loaning out their assets for a fixed period, while renters obtain temporary access to an NFT's utility without paying the full cost of ownership.^[2]​

Within this service, there are two primary use cases:

• Gaming and Access: Renters, particularly in the blockchain gaming sector, can borrow powerful in-game items or access-pass NFTs to enhance their experience or participate in exclusive events.
• Yield Generation: NFT owners can monetize idle assets by renting them out, creating a potential source of yield.^[2]

Services for Lenders and Borrowers

For Borrowers

• Fixed-Rate Loans: Zharta offers borrowers fixed-rate, fixed-term loans, providing predictable and stable funding costs. This structure can be useful for complex financial strategies such as looping (repeatedly borrowing against collateral) and leverage.^[1]
• Non-Custodial Control: Borrowers retain a degree of control over their collateralized assets while servicing their loans, allowing them to manage and refinance their positions.^[1]

For Lenders

• Structured Credit Creation: Lenders can create multiple, diversified loan offers, each with its own risk-reward profile. This enables granular risk pricing and the potential to capture yield premiums that may not be available in more standardized lending pools.^[1]
• Risk Management Tools: The protocol provides tools for managing risk, including the ability to issue callable loans that can be recalled under certain conditions and the option to participate in opt-in liquidations for defaulted loans.^[1]

Market Adoption and Metrics

As of early 2026, Zharta Finance has publicly reported several key metrics that reflect its platform activity. These figures include over $20 million in total collateralized assets. The platform has facilitated more than 15 loans and rentals, with the largest single loan amounting to $1 million.^[1]​

Security and Compliance

Security and regulatory compliance are central to Zharta's design and align with its focus on institutional-grade finance. The protocol emphasizes both technical safeguards and compatibility with regulatory requirements.

Security Audits

The smart contracts that power the Zharta protocol have undergone security audits intended to identify and mitigate potential vulnerabilities. However, specific details regarding the auditing firms or public links to the final audit reports have not been disclosed in the platform's public materials.^[1][2]​