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Participation Guide: NFT Time-Lock Vaults

How It Works

  1. 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.
  2. 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
  3. 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.
  4. 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.