Arcade.xyz FAQ
Frequently asked questions about Arcade.xyz
Introduction
Arcade.xyz is the web interface for the Arcade Protocol, serving as a decentralized, peer-to-peer lending and borrowing protocol on the Ethereum blockchain.
How It Works
Through Arcade, NFT owners maximize asset utility by borrowing against them, while lenders earn yield by providing liquidity. The following is reference information for how the Arcade Protocol functions.
Borrowing
- Standard Borrowing: List your NFTs or Vaults with set loan terms to receive offers from lenders in the Arcade Loan Marketplace.
- Instant Borrowing: For immediate liquidity, deposit NFTs into a Vault and accept an open collection offer.
Lending
- Standard Lending: Begin loans by signing borrower-defined terms on NFTs or Vaults.
- Custom Offers: Make specific offers on pre-defined terms on Vaults or individual NFTs.
- Collection Lending: Extend loan offers to entire collections or single NFTs within them.
Asset Vaults
An Asset Vault is a secure contract for holding various asset types, serving as loan collateral.
Supported Assets
- Loan Collateral: ERC-721 and ERC-1155 NFT collections, with future support for additional Ethereum-based collections.
- Loan Funding: Currently supports ERC-20 tokens including WETH, USDC, USDT, DAI, and APE.
Loan Lifecycle
- Loan Filling: Borrowers receive the principal amount, while both parties obtain promissory notes.
Default Cases
- Options for Lenders: In a default scenario, lenders can either extend repayment time or claim the collateral.
Fees and Risks
- Fees: Currently no associated lending fees, subject to future changes.
- Risks: Arcade Protocol is experimental; use at your own risk.
Updated about 1 year ago