In order to start a loan, lenders can explore the Arcade.xyz Lending Marketplace. This section shows Vaults or NFTs from Verified Collections that can be instantly matched with set terms from asset owners. Lenders can also make specific offers on Vaults or NFTs from Verified Collections.
The Arcade Protocol supports funding in all ERC20 tokens. The Arcade.xyz app currently supports funding in ERC20 tokens - wrapped ether (wETH) and stablecoins USDC.
- After connecting a funded wallet, lenders should navigate to Lend within the app to view the Lending Marketplace. From here, lenders can then select Vaults or NFTs from Verified Collections.
- Clicking on View Details on a Vault or a single NFT will bring up a modal including:
- Information about the Vault or NFT backing the loan
- Set terms of the loan from the asset owner including principal, repayment amount, duration of the loan, and APR.
- Offers on the asset
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.
- Once lenders settle upon a Vault or NFT and are ready to fund a loan instantly, they should select Sign Terms. A modal should appear asking to confirm the access to the ERC20 funding token (Function type: Approve) and the exact token amount that will be withdrawn from the wallet to fund the loan.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.
Approve: enables the protocol to withdraw the token type from the connected wallet.
- After the token spend is approved on chain, a success notification will appear in the app. Users 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.
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.
- Once confirmed, the app 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.
- After the success notification, the loan will be started. The tokens will be transferred to the borrower through the protocol and lender note (ERC271) will be generated to represent the lender's side of the loan. Once the transaction is completed, the Lender can navigating to the Loans > My Loans screen and the loan should appear Active.
Updated about 1 month ago