Borrowers with listed NFTs and Vaults can easily accept loan offers to access liquidity on Arcade.xyz. To learn more, see listing and setting terms on NFTs and Vaults.
Borrowers can start a loan instantly on two types of offers:
- Individual Offers - NFT and Vault holders that have listed assets and received specific offers on the Arcade Loan Marketplace can start on loan on these terms.
- Instant Liquidity - NFT owners can start a loan with a collection offer instantly - mint and deposit NFT(s) to a Vault and accept a collection offer to start a loan.
To accept an offer:
- Once the listing is selected, the detail page will show the outstanding offers from lenders.
This will show the details of the outstanding offer including: Token Principal Amount, Duration, Payoff Amount, APR and Expiration Date/Time of the offer.
On the first visit to the Arcade.xyz platform, NFT owners can see Collection Offers on assets. In order to accept a Collection Offer, the owner must deposit the NFT into a Vault. To view more details on creating and depositing into a Vault, please see Vaults - Mint and Deposit NFTs
- After an asset owner chooses an offer, they should select the Accept button. This will immediately prompt a wallet modal to approve (Function: Approve) access to the token in the connected wallet. There will be a second notification confirming the Contract Interaction to Start a Loan. The borrower should approve both of these interactions to proceed.
A notification will appear in the Arcade.xyz app that the on chain transaction is in progress.
Approve: enables the protocol to withdraw the token (NFT) from the connected wallet.
Contract Interaction: this transfers the stated token amounts from lender through the Arcade Protocol to the borrower. This function also initiates the transfer process of the assets into escrow with the Arcade Protocol.
- After the success notification, the loan will be started. The loan amount will be transferred to the borrower through the protocol and borrower note (ERC721) will be generated to represent the borrower's side of the loan.
Updated about 1 month ago