Participation Guide: NFT Time-Lock Vaults
How It Works
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Deposit into the Vault:
- Users can deposit funds or NFTs into either Fixed or Flexible Lock-Up Vaults.
- For Fixed Lock-Up Vaults, users must also lock a Partner NFT along with their funds for a predetermined period.
- For Flexible Lock-Up Vaults, users can lock their assets with more flexibility and may choose to withdraw earlier, with conditions.
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Earn Yield:
- While in the vault, users earn yield from:
- Additional bribes from partnered protocols
- Lending/LP yield generated by the assets
- Emissions from the vault’s growth
- Fees generated within the vault ecosystem
- While in the vault, users earn yield from:
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Trade Vault Positions:
- Flexible Vaults: Users can trade their vault positions on marketplaces, offering liquidity and flexibility even during the lock-up period.
- Fixed Vaults: Positions are not tradable until the lock-up period ends, ensuring the stability and structure of the vault.
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Withdraw or Exit:
- Users can withdraw their funds or NFTs at the end of the lock-up period for Fixed Vaults, or earlier for Flexible Vaults with the associated conditions.
Benefits of NFT Time Lock Vaults
For Partners
- Locked Liquidity with Low User Acquisition Cost:
Projects can secure long-term liquidity without needing expensive marketing campaigns or high incentives to attract users. - Additional Utility for NFTs:
By integrating their NFTs into the vault system, projects can offer holders new use cases beyond collectibles, increasing demand and engagement. - Reduces Sell Pressure on NFTs:
Locking NFTs in vaults prevents immediate resale, helping stabilize floor prices and reducing market volatility. - Revenue Share from Vault Fees:
Partner projects earn a portion of the vault fees, creating an additional revenue stream beyond their primary ecosystem. This incentivizes long-term collaboration and sustainability.
For Users
- Earn Without Strict Locking:
Flexible vaults allow users to benefit from locked assets while keeping their positions tradable. This means users can still access liquidity if needed while earning rewards. - Multiple Yield Streams & Bribes (Multi-Layer Yield):
Users earn from various sources, including partner bribes, lending/LP rewards, emissions, and vault-generated fees. These combined earnings not only boost returns but also increase the backing ratio of their NFT over time. - Exclusive Airdrops & Additional Rewards:
Vault participants gain access to special incentives, such as exclusive airdrops and perks from partnered projects, creating an extra earning layer beyond standard staking.