Vault FAQ

What is a Vault?

An Asset Vault is a holding contract that functions as a safe storage mechanism for one or multiple compatible assets.

Asset Vault contracts could hold any or all of ETH, ERC20s, ERC721s, ERC1155s, and/or CryptoPunks.

Vault Contract

Why Create a Vault?

Vaults enable users to leverage multiple assets as collateral for loans, accept collection offers, and receive airdrops on the deposited assets.

  • Multiple Asset Compatibility: Vault owners can use one or multiple assets as collateral for a single loan. Our biggest collectors and lenders tell us this feature alone saves them a ton of time and gas.
  • Collection Offers: Vault owners can accept Collection Offers on assets deposited into a Vault.
  • Receive Airdrops: Vault owners can claim push or pull-style airdrops for assets in the Vault by interacting with the contract deployed by the airdrop issuer.

What is the Vault creation process?

Arcade users can create a Vault on the Borrow page in the Arcade.xyz app by selecting Create a Vault on the page. After a user confirms the on chain transaction and a Vault is successfully created, the newly created Vault will appear in the Borrow section.

Please see Create & Deposit - Vault for more detail on this process.

How are NFT(s) deposited into a Vault?

  • Vault owners can deposit assets into a Vault by opening a Vault on the Borrow page and selecting Deposit on the Vault detail page.
  • The NFT(s) from the connected wallet will appear and owner can select the asset(s) they would like to deposit.
  • Once the owner confirms and the on chain transactions are successful, the NFT asset(s) will appear in their vault in the app.

Please see Create & Deposit - Vault for more detail on this process.

Can a Vault be held in a wallet?

A Vault is a holding contract and therefore is not held in a wallet. When an Arcade user creates a Vault, an ERC721 token representing ownership of the Vault is sent to the wallet that facilitated the creation of the Vault.

How are assets withdrawn from a Vault?

Vaults are natively created with withdrawals disabled.

If a Vault is not associated with an active loan on the Arcade.xyz platform, Vault owners can enable withdrawals and then transfer assets from the Vault to a connected wallet.

Vault owners should note that enabling withdrawals on a Vault is a permanent action that cannot be reversed. Therefore, once withdrawals have been enabled on a Vault, this state cannot be changed.

After a Vault owner enables withdrawals on a Vault, they cannot:

  • Disable withdrawals on the Vault
  • Deposit additional assets into the Vault
  • Set terms on the Vault
  • Start a loan using the Vault as collateral
  • Transfer ownership of the Vault to another user

Please see Withdrawals - Vault for more detail on this process.