Arcade: Abbreviated Introduction
Arcade.xyz is an application that facilitates liquidity for NFTs. It enables the financialization of non-fungible assets, which are natural evolutions of storing value and attributing ownership to unique assets. The platform offers an off-chain order-matching service that uses structured digital signatures to validate borrowers’ and lenders’ loan term attestations. The loans are settled on-chain and held in decentralized escrow, co-opting security guarantees offered by Ethereum.
Arcade.xyz is built on top of the Arcade Protocol, a new protocol that facilitates off-chain negotiation and on-chain settlement for loans collateralized by an Asset Vault, which effectively functions as a safe storage mechanism for multiple assets. Furthermore, an institutional over the counter (OTC) desk uses machine learning and social sentiment analysis to appraise NFTs and allow users to maximize value from their assets.
There are six actors in the Arcade Protocol:
- Asset Vault Owners.
- NFT Owners.
- Borrowers.
- Borrower Note Holders.
- Lenders.
- Lender Note Holders.
The total market capitalization for the NFT sector stands at ~$10 billion in January 2023. There is a huge and diversified demand for NFT loans.
Arcade’s team of technologists, builders, and visionaries includes some of the best talent working in Web3 and DeFi.
NFTech builds Arcade, a company focusing on building primitives, infrastructure, and applications furthering the growth of NFTs as an asset class. It is based in the United States – a jurisdiction that has a friendly stance towards digital assets and the blockchain industry. As of writing, users had borrowed more than $42 million via the Arcade platform.
Arcade announced a $15 million Series A funding round in December 2021 that Pantera Capital led.
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