Digital Vaults are building blocks
Vaults are fundamental building blocks in modern digital finance. Wrapped Token Vaults create recursive relationships between related non-fungible and fungible tokens. As compared to other vault protocols, the process of issuing a relational wrapped token is automated by the vault contract and therefore eliminates counterparty risk. This elegant solution simplifies the process of unlocking liquidity from non-fungible digital assets.
Eliminating counterparty risk
Wrapped Token Vaults are immutable, publicly owned, and free to use by anyone. Automating issued wrapped tokens by the vault-contract eliminates the ability for token theft. This evolution in blockchain technology ensures the integrity of issued wrapped tokens as each digital asset contained in the vault can be individually audited.
Automatic token wrapping
Vaults issue specific tokens whenever an NFT is deposited. Since these can be exchanged at a set ratio with any deposited NFT, the combined value of all tokens in circulation matches the combined value of all deposited NFTs.
It couldn’t be more simple:
- Deposit an NFT into the corresponding Vault;
- Automatically receive a related wrapped token which tracks the combined value, at a set ratio;
- Burn the correct ratio of wrapped token to withdraw any NFT locked in the corresponding Vault.