🗝️What are Vaults?

Vaults are a new standard that we've developed to add value for NFT holders, collections, and token founders.

With Vaults, any user can deposit any ERC-20 token into an NFT. Are you a memecoin founder who wants to airdrop a portion of supply to NFT holders of a specific collection, but only NFTs with a certain set of traits? You can do that directly on Drip Trade with Vaults.

Why do Vaults matter?

Vaults increase the collective speculation on what individual tokens may be worth.

For token projects, Vaults add another layer of protection against selling pressure. They also help with token distribution, getting the right tokens in the right peoples' hands. You can reward niche sub-communities or reward holders of rare traits very simply, for marketing purposes or otherwise.

For traders, Vaults unlock a new layer of strategy. Users may now speculate on embedded, or intrinsic, as well as the already existing extrinsic value. This can create arbitrage opportunities between NFTs with similar visuals but different Vault contents, especially when vaulted tokens are potentially mis-priced or have their own degree of volatility.

Any new collection can become a Vaulted collection as long as the collection has not minted yet, except in certain cases.

A full overview of Vault functionalities is available in the next section.