📖Overview

General review & project summary

Welcome to The Gold Standard of DeFi!

Collective Finance is a decentralized finance project that aims to provide a secure way to earn consistent yield, while at the same time getting exposure to digital commodity representations.

Problem/Solution

In regular Trade-Fi, participants can hold and gain exposure to gold, silver, oil, etc, but there are heavy restrictions like only being tradable on weekdays, being hit with high fees, and little to no means to generate additional passive revenue from those assets. Collective Finance is here to deliver on that front by launching C-Tokens. These tokens represent tradable, asset-backed, over-collateralized commodity representations that have no restrictions and direct yield-earning potential. There will be many commodity representations to come but the first one to be launched will be gold, with the initial process involving acquiring PAXG on the Ethereum network, followed by the issuance of CGLD on the host network. CGLD will be over-collateralized at a rate of 101-110% at all times with PAXG and will be soft-pegged to the price of 1 gram of gold. The main use case for all C-Tokens is to provide a liquidity solution and the ability to earn yield on commodities in decentralized finance, as obtaining consistent and reliable exposure + yield is virtually non-existent.

C-Tokens can only be minted via smart contract if the collateralization rate meets a minimum of 101%. Protocol governance will at all times adhere to this rule and will not arbitrarily mint new tokens.

How does it work?

It starts with the Collective Finance NFT collections and the potential for participants to generate rewards and yield. By minting/buying one of our NFTs and staking it within our dApp users can begin to earn concurrent rewards in the form of Bluechip coins like BTC and stablecoins like our C-Tokens. You will also gain access to the other benefits that the NFTs offer like strategic bonuses based on project growth, earning a portion of Mint & Redeem fees + discounts on the Mint & Redeem, and the ability to lend/rent out the NFTs. Though some are specific to our highest-tier collection, the Angel NFTs.

Being a part of Collective Finance enables users to earn steady and recurrent on-chain yield and rewards. On top of that, users also get a fractionalized right to the protocol's Portfolio and Vault, which are made up of backed, over-collateralized, digitized assets.

Revenue/Rewards

Revenue streams for the protocol are produced through three distinct avenues: the Vault, the Treasury, and the Portfolio. Each component plays a critical but separate role in the ecosystem. The Vault maintains and contains our novel C-Tokens protocol-owned liquidity (POL) positions and their collateral which is farmed to generate yield and rewards. The Portfolio will act as our investment hub to generate outside revenue which will be mobilized into various strategies like trading bots, yield farming, in-house trading, and more! Finally, the Treasury will serve as more of a project bank that will be holding NFTs and earning portions of the profit we generate in the Vault & Portfolio which will be used to pay for operations and continue project growth.

The continuous increase in the value of the Vault, Treasury, and Portfolio will positively impact the Collective Finance ecosystem, which will ultimately be returned to all NFT holders.

Everyone will be able to monitor and observe how the Vault, Treasury, and Portfolio are performing. NFT holders will also have the right to participate in governance and therefore steer the project in what they think is the right direction.

Be forewarned, before you go any further: THIS IS NOT A DEGEN PROJECT. If you are a seeker of insane, unsustainable APRs or rebases, then Collective Finance is not what you are looking for. There are no Ponzinomics in Collective Finance and incoming new money (although always helpful) is not required to make things work or keep the protocol moving forward. Rather, Collective Finance is designed to produce consistent, ongoing yield, AND growth within an ecosystem that helps offset traditional crypto volatility.

The information contained in this whitepaper is for informational purposes only and does not constitute legal or investment advice. The contents of this whitepaper should not be construed as an offer or solicitation to buy or sell any securities or investment products.

This whitepaper is provided "as is" and without warranties of any kind, either express or implied, including but not limited to warranties of merchantability, fitness for a particular purpose, or non-infringement. The project team makes no representations or warranties about the accuracy, completeness, or reliability of any information in this whitepaper.

The project team and its affiliates will not be liable for any direct, indirect, incidental, consequential, or special damages arising out of or in any way connected with the use of this whitepaper, even if advised of the possibility of such damages.

This whitepaper may contain forward-looking statements or projections that are based on the current beliefs, assumptions, and expectations of the project team regarding future events. Such statements involve risks and uncertainties, and actual events or results may differ materially from those projected or implied in such statements.

The project team reserves the right to make changes to the information contained in this whitepaper without prior notice. The project team also reserves the right to reject or modify any proposed investment in the project at its sole discretion.

By accessing or using this whitepaper, you agree to indemnify and hold harmless the project team, its affiliates, and their respective directors, officers, employees, and agents from any claims, actions, suits or demands, including but not limited to legal fees, arising from or related to the use of this whitepaper.