Overview

Arcade.xyz is an application that facilitates NFT liquidity. The application enables the financialization of non-fungible assets, commonly referred to as NFTs. They represent a natural evolution of storing value and attributing ownership for unique assets.

Arcade.xyz facilitates trustless off-chain order matching using structured digital signatures to validate loan term attestations from borrowers and lenders. Loans are settled on-chain and held in decentralized escrow, co-opting cryptographic security guarantees offered by Ethereum.

The Arcade.xyz application is built on top of the Arcade Protocol. The Protocol facilitates off-chain negotiation, on-chain settlement for loans collateralized by an Asset Vault, which a holding contract that functions as a safe storage mechanism for multiple assets.

Features

Asset Vaults

Asset Vault - Create a Vault and deposit one or multiple NFT(s) into the Vault. Vault owners receive an ERC721 token representing ownership of the Vault. Vaults can hold any or all of ETH, ERC20s, ERC721, ERC1155, and/or CryptoPunks.
Airdrop Utility - Receive airdrops for NFT assets held in a Vault.
Delegate Cash - Enables Vault holders to assign a hot wallet delegate for NFT assets deposited into a Vault on Arcade.xyz.
Staking - Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC) and APECoin ($APE) holders can mint and deposit assets into a Staking Vault and then stake into a supported pool (per Horizen Labs) and obtain liquidity on these assets through the Arcade.xyz platform.

Borrowing

Set Terms - Asset owners can set terms on their Vault or NFT - specifying (ERC20), duration, interest rate, for term loans of positive duration, collateralized by the assets in the Vault or NFT.
Trustless Matching - Lenders can fund a loan request trustlessly and once countersigned, either lender or borrower can marshal a loan for on-chain settlement.
Borrower Note - Upon settling a loan on-chain, the funding amount is disbursed to the borrower's address, the encapsulated assets in a Vault are held in escrow by the protocol, and the borrower receives a borrower note (ERC721) that represent their claim to the assets upon loan repayment.
No Prepayment Penalty - Loans can be paid off any time to recoup assets held in escrow on-chain with the protocol.

Lending

Offers - Lenders can make offers on Vaults or NFTs.
Collection Offers - Lenders can also make offers on many of the popular collections in the space.
Trustless Matching - Borrowers can settle a loan by accepting a loan offer trustlessly since the Lender has digitally signed the terms of the offer and approved the funding amount for those terms to the Arcade Protocol.
Lender Note - Upon settling a loan on-chain, the lender transfers the funding amount from their wallet to the borrower's and receive a lender note (ERC721) that represents their claim on the Vault encapsulating the assets collateralizing the loan (and therefore a claim on the assets themselves) if the loan were to default.
Trustless Claims - Simple logic embedded in the Arcade Protocol dictates whether a loan is in default. If the principal and interest amount have not been paid by the end of the loan duration, the loan is claimable. The Vault, and therefore the underlying assets collateralizing the defaulted loan, are transferred on-chain to the address that owns the lender note.