Arcade.xyz is a platform that enables decentralized, peer-to-peer lending and borrowing on the Ethereum blockchain. The platform is built on the Arcade Protocol.
Arcade.xyz enables NFT owners and lenders to get liquidity and earn yield. Borrowers maximize the utility of their NFTs and lenders earn interest for providing liquidity.
To start receiving loan offers on Arcade.xyz, NFT owners must list and set loan terms on single NFTs or Vaults on the platform. The single NFT or Vault will be listed on the Arcade Loan Marketplace and open to offers from lenders.
NFT owners can also start a loan with a collection offer instantly - mint and deposit NFT(s) to a Vault and accept an open collection offer to access instant liquidity on Arcade.xyz.
Lenders can instantly start a loan on the platform by signing owner set terms on Vaults or single NFTs. They can also make specific offers on Vaults and single NFTs that have owner set terms.
Lenders can also make offers on entire collections and single NFTs from these collections.
An Asset Vault is a holding contract that functions as a safe storage mechanism for one or multiple compatible assets. Vaults can be used as collateral for loans on the platform.
To learn more, head over to Vault FAQ.
Arcade.xyz currently supports the use of ERC-20 tokens for funding loans and NFTs from ERC-721 and ERC-1155 collections as loan collateral. Additional Ethereum based collections and projects will be supported in the future.
For a complete list of collections currently supported by Arcade, see Collections in the app.
Arcade.xyz currently supports lending in the following ERC-20 tokens: WETH, USDC, USDT, DAI and APE.
Support for additional ERC-20 tokens is coming soon.
When a loan is filled, the borrower is transferred the agreed upon principal amount to their wallet. The borrower and lender receive promissory notes representing the loan to their respective wallets.
If the borrower does not repay the loan in the timing specified at the inception of the agreement, the lender can either:
- Allow the borrower more time to pay back the loan
- Decide to take ownership/claim the collateral, although the lender forfeits their ability to recover any portion of the loan's principal and interest amounts.
There are no liquidations or margining capabilities in the protocol currently.
There are temporarily no fees associated with lending on the Arcade.xyz platform. This fee structure and arrangement may be changed in the future.
The Arcade Protocol is an experimental platform provided "AS IS" without warranties of any kind. Use of the platform, Arcade app, or smart contracts is at your own risk.
Updated 4 months ago