Unlockd Account
The Unlockd Account is a cornerstone feature of the Unlockd platform, enabling a seamless and secure fusion of asset liquidity and utility.
This specialized account functions similarly to a multi-signature wallet and is essential for engaging in activities involving debt on Unlockd, such as taking out instant loans or using the 'Bid-Now-Pay-Later' feature in marketplace auctions.
There's no such thing as "signing up" here, this is not a Web 2 account. You do not need an email or password; it's created linking your personal wallet as an authorized signer.
Core Functionality
The Unlockd Account operates as a shared wallet, making it a requisite for any debt-related transactions. It's built on the reliable security infrastructure of Gnosis Safe, providing a trusted environment for your transactions. Although it’s recommended for all transactions on the platform, it’s mandatory when you want to take an instant loan or engage in any debt-related activity.
Setting Up Your Unlockd Account
Creating your Unlockd Account is straightforward:
Prompted during your first borrowing action or when opting for 'Bid-Now-Pay-Later'.
Connect your personal wallet (like Metamask or Coinbase Wallet) to Unlockd.
Approve the creation of a shared wallet, where you're one of three signers – the user, the Delegate Owner, and the Protocol Owner.
A small gas fee is required for setup.
Once created, you can access your Unlockd Account by connecting your personal wallet through WalletConnect, offering a hassle-free user experience.
Asset Transfer and Gas Implications
All transfers into and out of your Unlockd Account, whether depositing NFTs for a loan or withdrawing them back to your personal wallet, require gas. It’s important for users to factor in these transaction costs when managing their assets within the Unlockd ecosystem.
Asset Management and Utility
Your Unlockd Account is versatile:
Before a Loan
Use it as a standard wallet to deposit, withdraw, and manage assets freely.
Checking Collateral Eligibility
To ascertain if your NFTs are eligible for use as collateral without transferring them, simply connect your personal wallet to the Unlockd platform. The Unlockd Account will read the NFTs in your wallet and indicate which ones are eligible for collateralization, streamlining the pre-loan preparation.
Pre-Loan Asset Analysis
Before initiating a loan, you might want to evaluate which NFTs to bundle based on their valuation and the potential Loan-To-Value (LTV) ratio. To facilitate this, transfer the NFTs you’re considering as collateral from your personal wallet to your Unlockd Account. It's here that you'll be able to see detailed appraisals and LTV calculations for each NFT, aiding in your decision-making process.
After Loan Initiation
Specific NFTs used as collateral are managed jointly by you and Unlockd, with two additional signers stepping in to facilitate and safeguard operations.
Thanks to this, you are able to keep all the on-chain utility of your collateral in real time. Learn more here:
pageKeep Ownership & UtilitySigners and their roles
Once you decide to activate a loan using selected NFTs in your Unlockd Account, these assets enter a shared control mechanism:
Delegate Owner: Handles collateral NFTs' delegation, enabling their on-chain utility to remain active. This includes actions like staking or participating in events, all within a whitelist of permitted actions to prevent unauthorized selling or transferring.
Protocol Owner: Engages in two scenarios:
Liquidation: Automatically intervenes to liquidate part of the collateral if necessary to recover the loan’s health factor, following our Liquidation Process.
Marketplace Transactions: Manages listings or auctions of NFTs on the Unlockd Marketplace, whether they're with or without debt.
Liquidation and Market Participation
Multi-Signature Dynamics: When NFTs are in an active loan, the Delegate Owner and Protocol Owner have joint control to optimize protocol health and maintain asset utility. All transactions performed by the user are executed through one of these two signers.
Loan Repayment and Asset Freedom: While NFTs are in an active loan, they reside in your Unlockd Account but are subject to the conditions of the loan. Free assets not under loan can still be transacted freely.
One-Time Approval for each NFT collection
Our one-time approval system is designed to facilitate all your transactions involving NFTs from a specific collection, making your interactions with the platform smoother and more efficient.
This feature depends on the standard under which the NFTs were created. Some NFT collections, particularly those not following common standards like ERC-721 or ERC-1155, may not support the One-Time Approval functionality, and you will need to sign multiple Approval transactions.
How One-Time Approval Works
When you first decide to use an NFT from a particular collection for any debt-related activity on Unlockd, when transferring it into your Unlockd Account, you'll encounter a one-time approval process. This is what you need to know:
Approve All Transaction: The initial transaction from your personal wallet to the Unlockd Account for an NFT from a specific collection will prompt an 'Approve All' request. This is a one-time authorization that grants permission to the Unlockd protocol to interact with all NFTs from that collection on your behalf.
Future Transactions Made Easy: Once you've signed this approval for a collection, you won't need to approve individual transactions for any NFT of that collection in the future. Whether it's transferring NFTs in and out of the Unlockd Account, initiating a loan, listing for an auction, or accessing on-chain utilities, the one-time approval covers it all.
Reduced Transaction Steps: This approval mechanism eliminates the need for repeated approvals for each NFT or each transaction, saving you time and reducing transaction costs in terms of gas fees.
Security and Control
While this process simplifies transactions, it's designed with your security in mind:
Control Remains Yours: The one-time approval does not compromise your control over your NFTs. It merely facilitates transactions on the Unlockd protocol.
Secure Transactions: Each transaction, despite being pre-approved, is securely processed within the robust framework of the Unlockd platform, ensuring the safety of your assets.
Revoking Approvals: If, for any reason, you want this approval to be revoked, you can do it easily. Keep in mind that you will need to sign another 'Approve All' transaction to re-enable seamless transactions for that collection on Unlockd.
Strategic Recommendations
Whitelisting Requests: Users can propose new on-chain utilities for whitelisting, further enhancing their NFTs' usability during a loan.
Transaction Limitations: For bundles over 100 NFTs, transactions may fail due to blockchain limitations; users should proceed cautiously with large bundles.
Gas Considerations: Always account for gas fees when moving assets in or out of the Unlockd Account.
Asset Evaluation: Utilize the Unlockd Account’s valuation tools to strategically select NFTs for your loan bundle.
The Unlockd Account is not merely a feature; it's an innovation that empowers users to maximize their NFTs' potential. It’s the nexus where asset control, liquidity access, and the retention of utility converge.
Users are strongly advised to familiarize themselves with the Unlockd Account to fully leverage the opportunities it presents within the Unlockd ecosystem.
Last updated