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, ERC-20s, ERC-721s, ERC-1155s, and/or CryptoPunks.

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 and get instant liquidity on their NFTs.
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.
Delegate Cash: Vault holders can assign a hot wallet delegate for NFT assets deposited into a Vault on Arcade.xyz using Delegate Cash.
APE Staking: Staking Vaults enable Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC) and APECoin (APE) holders to mint and deposit assets into a Staking Vault and then stake into a supported pool and obtain liquidity on these assets through the Arcade.xyz platform.

What is the Vault creation process?

Arcade users can create a Vault on the My Vaults page in the Arcade.xyz app by selecting Mint Vault. 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 is not held in a wallet. When an Arcade user creates a Vault, an ERC-721 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How are assets withdrawn from a Vault?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.