What is Arcade? Arcade is a decentralized peer-to-peer lending platform on Ethereum that allows users to use NFTs as collateral to borrow an amount of ERC20 tokens. Let’s find out what is special about this project with Weakhand in this article.
What is Arcade?
Arcade is a decentralized peer-to-peer lending platform on Ethereum that allows users to use NFTs as collateral to borrow an amount of ERC20 tokens.
What is Arcade?
Arcade is built on top of the Arcade protocol. This protocol uses structured digital signatures to authenticate loan terms from borrowers and lenders, and settle loans on-chain. This approach helps ensure that loans are safe and trustworthy due to the legacy of Ethereum security.
Arcade’s customers:
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Borrower (Borrower): Create an Asset Vault and deposit one or more NFTs into the Vault.
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Lender (Lender): Deposit an amount of tokens into the Vaults to receive interest. Currently Arcade only supports USDC, WETH, DAI, APE.
To understand more about NFT Finance, you can refer to the article: What is NFT Finance? The future of NFT in the Crypto market.
Arcade Operating Model
The model works on Arcade
The Arcade operating model is quite simple, including the following steps:
Step 1: Borrower creates an Asset Vault and deposits one or more NFTs into the Vault. They then set the terms of the loan on Vault such as: term, interest rate for the loan,…
Step 2: Lenders search for Vaults that match their criteria on Arcade. The Lender can then accept the borrower’s offer in Vault or make a loan offer.
Step 3: After reaching an agreement between Lender and Borrower. Lender deposits his tokens into the Vault and receives interest.
Step 4: Borrower then returns the tokens + interest to the Lender and receives his assets back (here, Vault).
Note: Borrowers can repay their loans at any time as long as they are due.
Sale: Liquidation does not take place on Arcade. Borrower can negotiate with Lender to extend the loan or Lender will have the right to request ownership of Borrower’s Vault again.
What is the Difference of Arcade?
Arcade Vaults now support Delegate Cash. Delegate Cash allows Vault owners to designate a hot wallet delegate for NFT assets deposited into the Vault on Arcade.
Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), Bored Ape Kennel Club (BAKC) and APECoin (APE) holders can deposit assets into a Staking Vault for Staking.
Core Team
Update…
Investor
May 1, 2021: Arade announced its successful call for $2.8M.
December 22, 2021: Arcade announced a successful $15M fundraising led by Pantera Capital.
Tokenomics
The project has not launched tokens yet
Information Channel of Arcade Project
- Website: https://www.arcade.xyz/
- Twitter: https://twitter.com/arcade_xyz
- Medium:
summary
Hopefully this article has helped you understand What is Arcade? The NFT Finance market is still a very early market and arcade is one of the projects that lays the bricks to build a strong market in the future.
