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.
NFT owners can optionally set terms or receive offers on Asset Vaults (a smart contract capable of holding multiple tokens as collateral) or a single NFT(s) to be fulfilled by lenders via the Arcade app.
To borrow on one or multiple NFT(s), Arcade.xyz users can create Vaults (a smart contract capable of holding one or multiple NFT(s) as collateral) and deposit NFT(s) from a connected wallet into the Vault.
All Vaults that contain NFTs are open to loan offers by default on the platform. Vault owners can set terms on their Vault in order for lenders to immediately start a loan leveraging the subject Vault as collateral.
To borrow on a single NFT, owners can also set terms on the NFTs from Verified Collections from a connected wallet. NFTs with terms set by the owner are open to loan offers on the platform.
Borrowers can also accept specific offers on their Vaults or single NFTs. They can also accept collection offers on NFTs given that the asset is in a Vault.
Lenders can instantly start a loan on the platform by signing owner set terms on Vaults or single NFTs. They can also make 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 ERC20 tokens for funding loans and NFTs from select ERC721 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.
Currently in the app, only two ERC20 tokens are supported: wETH and USDC.
Support for additional ERC20 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 a 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 over the collateral, although the lender forfeits their ability to recover any portion of the 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