What are Spice Vaults?
Spice Vaults run user-determined, automated lending strategies across all NFT lending marketplaces in the industry, which earn yield both continuously through underwriting NFT-backed loans and periodically by interest payments. Users can deposit corresponding ERC-20 tokens (i.e., wrapped ETH, DAI, etc.) and the Spice Vault will automatically start running the user-specified lending strategy to earn yield. With this vault structure:
- 1.Depositors instantly gain exposure to a diversified set of loans, NFT collections, LTVs, and NFT lending marketplaces.
- 2.Gas costs are minimized via socialization with all other vault depositors. Instead of doing 3-4 transactions per week per user, the vault will do 3-4 transactions per week for thousands of users at once. This makes the user experience of using these Spice Vaults extremely straightforward and relatively cheap.
At launch, there will be one type of Vault available to users on Spice's platform (with more to come!):