The Vault

Finders keepers.

What is The Vault?

The Vault is a storage hub where users can deposit their NFTs to be fractionalized into publicly tradable μ-Tokens (micro-tokens). It serves as the repository where μ-Tokens are minted.

What happens when I deposit my NFT into The Vault?

You relinquish direct ownership of that particular NFT to the protocol and receive fungible μ-Tokens in return. Your NFT joins The Vault's reserves.

Do I maintain ownership rights to my NFT after depositing into The Vault?

No, depositing an NFT into The Vault transfers ownership to the protocol. If you deposit 1 BAYC, you would receive 1,000,000 μBAYC and will be able to redeem a randomly selected NFT from the BAYC Vault, providing some collectors the opportunity to swap for a more desirable asset.

Can anyone redeem the NFTs stored in The Vault?

Yes, any user can redeem a randomized NFT from The Vault's reserves by burning the equivalent number of μ-Tokens they initially received for depositing that NFT.

How are NFTs in The Vault used for μ-Token redemption?

Users can redeem vaulted NFTs by burning their μ-Tokens. The NFT received in exchange is randomly selected from The Vault's reserves. Users cannot choose the specific redeemed NFT.

Are there fees for redeeming NFTs from The Vault?

Typically, no fees apply. But dynamic fees in $FLC are charged if the Reserve Ratio drops below 40% to discourage excessive redemptions. Lower ratios mean higher fees.

What happens if all NFTs are redeemed from The Vault?

Reserve ratio-based fees and arbitrage mechanisms aim to prevent this scenario.