Start Loans Instantly
Users can explore the Arcade.xyz Lending Marketplace to view and fund loans on listed Vaults and NFTs. Lenders can start loans instantly on NFTs and Vaults with Set Terms.
Arcade.xyz supports lending the following ERC-20 tokens: WETH, WBTC, USDC, USDT, DAI and APE.
Please see the below steps to start a loan instantly on the platform:
- After connecting a funded wallet, lenders should navigate to Lend within the app to view the Lending Marketplace. Lenders can view all listings with terms set by selecting the below filter:
- Once lenders settle upon a Vault or NFT with set terms and are ready to fund a loan instantly, they should select
A modal should appear asking to confirm the access to the ERC-20 funding token (Function Type: Approve) and the exact token amount that will be withdrawn from the wallet to fund the loan.
Once the on chain transaction confirmed in the wallet, a pending notification will appear in the app.
- After the token spend is approved on chain, a success notification will appear in the app. Lenders must then hit Start Loan in the app on the Vault or NFT modal. This will prompt another wallet transaction (Function Type: Contract Interaction) to confirm.
Once confirmed, the dapp will show a notification that the on on chain transaction is pending.
After the transaction is complete on chain, a success notification will appear in the app.
Protocol Functions: Initiating a Loan
Funding itself requires two wallet transactions, an approval to spend the funding token (Function: Approve) and a signature on the loan details (Function: Contract Interaction) signed with a wallet address. Both of these approvals are used by the protocol to initialize the loan.
Initialize Loan: this transfers the token from the protocol to the borrower and initiates the transfer process of the assets into escrow with the Protocol.
- After the success notification, the loan has started. The principal amount of ERC-20 tokens will be transferred to the borrower through the protocol and the collateral/assets will be moved into escrow with the Arcade Protocol. Both the borrower and lender notes (ERC-721) will be sent to each corresponding wallet to represent the subject loan.
- Once the transaction is completed, the loan will be moved to the Loans page on the Arcade Loan Marketplace and appear as Active.
Updated about 1 month ago