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Arcade: Institutional Report

3 min readResearch

Arcade: Institutional Report

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.

To purchase Arcade in-depth report and to see our full ratings and assessment please contact us at [email protected]

Disclaimer

This Report is for informational purposes only and/or all or any of its content thereof, should not, may not, and will not be taken to constitute, either as a whole or in part, any investment advice or recommendation or similar, regulated, or authorized advice, and D-Core by producing, disseminating, giving away, or making available this Report does not, should not, may not and will not be taken to advise on investments, or carry out any similar activity, or any regulated activity or any other authorized activity. D-Core is not authorized by the Financial Conduct Authority or by any other competent EU or elsewhere or otherwise competent authority to carry out any regulated activities and/or any activities within the scope of these authorities’ competence.

D-Core excludes and disclaims all liability and/or responsibility whatsoever and/or howsoever caused, arising out of any actions, or omissions taken, or made by any authorized and/or other recipient of this Report in reliance on, or arising out of, or in connection with any or all content of this Report. Any authorized and/or other recipient of this Report acknowledges, accepts and agrees that they carry out their own independent research and act in their own sole risk in reading or using any or all information contained in this Report. In any event, recipients of this Report are urged to seek professional advice before making any potential investment decision in relation to the project described herein. Any authorized and/or other recipient of this Report accepts this Disclaimer in full. For the avoidance of doubt, this Disclaimer is binding against any recipient of this Report whatsoever.

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