The MarketVault is where NFTs sold to the protocol or held as collateral are kept. NFTs that have been sold to the MarketVault can be purchased by 🧑‍🎨Collectors using the redemption, Buy-It-Now, or Bids mechanics. The MarketVault also directs the minting and burning of the 🖼️NFT Index Token, which allows the token to track its backed value via arbitrage.


The core difficulty in creating a lending protocol for NFTs is the problem of liquidations. NFTs make a poor collateral type in traditional lending protocols because the principals of loans are dominated in fungible tokens, and it is difficult to quickly convert an NFT into a fungible token. The MarketVault underlies a new type of asset capable of receiving a variety of NFTs and producing a fungible token, in essence fungifying the NFT. This provides the guaranteed, instant counterparty necessary to efficiently carry out liquidations.

Interacting with the MarketVault is permissionless; it is not just a guaranteed counterparty for the protocol, but for every market participant. Since it is able to receive multiple types of NFT and produce a single fungible token, each new collection whitelisted to the MarketVault builds upon the liquidity of the previous collections, allowing it to accrete upon itself. Rather than a variety of fragmented vaults with shallow liquidity, the MarketVault provides a unified, global source of liquidity for NFT trading.

MarketVault Sections

The MarketVault contains NFTs in two conceptual sections: Unreserved and Reserved.


Unreserved NFTs enter the vault when a 👨‍💼Seller directly deposits their NFT into the MarketVault in exchange for 🖼️NFT Index Token or when loans collateralized by NFTs default or become liquidated. NFTs in the Unreserved section of the MarketVault can only exit via the 🎰Redemption Mechanic.


Reserved NFTs enter the MarketVault as collateral for loans. These are NFTs that the 🔓MarketVault is holding as collateral, but does not own. The 🙋Borrower maintains the rights to these NFTs. NFTs remain reserved as long as a borrowers is not liquidated. At the end of a loan term, ownership of a Reserved NFT returns back to the borrower.


Each sale made to the MarketVault incurs a two percent (2.0%) spread from the appraised value. That spread is split between 🍄FUNG Token holders and staked 🖼️NFT Index Token, with twenty percent (20%) going to staked $FUNG holders and eighty percent (80%) going to staked $NFT holders.

Collections Whitelist

The protocol will only accept whitelisted NFT collections. The following NFT collections are currently on the whitelist:

  1. Bored Ape Yacht Club

  2. Crypto Punks

  3. Mutant Ape Yacht Club

  4. CloneX

  5. Azuki

  6. Doodles

NFT collections can be added to the whitelist through 🏦Governance. In order to be added, a collection must have a Chainlink price feed. No collection with a total marketcap of under 50MM was included in the initial list.

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