NFTH

Integrating with DeFi

vTokens are standard ERC-20 tokens, making them compatible with all DeFi protocols.

Trading on DEXs

Adding Liquidity

  1. Acquire vTokens by minting or trading
  2. Go to your preferred DEX
  3. Create or add to a liquidity pool
  4. Common pairs: vToken/HYPE, vToken/USDC

Price Discovery

vToken prices naturally track NFT floor prices:

  • If vToken trades below floor: arbitrageurs buy vTokens, redeem, sell NFTs
  • If vToken trades above floor: arbitrageurs buy NFTs, mint, sell vTokens
  • Market forces keep prices aligned

Lending and Borrowing

vTokens can be used as collateral on lending platforms:

  1. Deposit vTokens as collateral
  2. Borrow stablecoins against them
  3. Use borrowed funds for other investments
  4. Repay loan + interest to unlock collateral

Benefits

  • Access liquidity without selling NFT exposure
  • Leverage your NFT position
  • Earn yield on deposited vTokens

Yield Farming

Participate in liquidity mining:

  1. Provide vToken liquidity on DEXs
  2. Stake LP tokens in yield farms
  3. Earn additional token rewards

Smart Contract Integration

For developers integrating vTokens:

// vTokens are standard ERC-20
IERC20 vToken = IERC20(vaultAddress);

// Check balance
uint256 balance = vToken.balanceOf(user);

// Transfer vTokens
vToken.transfer(recipient, amount);

// Approve spending
vToken.approve(spender, amount);

Risks

Liquidity Risk

  • Low liquidity pools have high slippage
  • Large trades may move prices significantly

Smart Contract Risk

  • vTokens depend on vault contract security
  • Always verify contract addresses

NFT Collection Risk

  • vToken value depends on underlying NFT value
  • Collection could lose value or interest