# Participation Guide: NFT Time-Lock Vaults

## **How It Works**

1. **Deposit into the Vault**:
   * Users deposit liquidity into an NFT Time-Lock Vault and receive a **liquid-backed NFT** in return.
   * If a user doesn't hold the specific vault token, they can use **Zapper** to deposit using **any token from any chain** — all with the same single click deposit.
   * The deposited liquidity is then routed to the **partner’s vault** to generate **multi-layered yield**.
2. **Earn Yield**:
   * **While in the Vault, Users Earn Auto-Compounded Yield From:**
     * **Bribes** from partnered protocols
     * **Lending or LP yield** generated by the deposited assets
     * **Emissions and incentives** from the underlying vault
     * **Vault fees**, including:
       * Royalties
       * Zapper fees
       * Borrowing interest
       * Borrowing liquidation fees
       * Instant redemption fees
3. **Trade or Borrow Vault Positions**:
   * **Borrow:** The Unified Borrowing System allows users to borrow USDC against any position across our products — including LP tokens and liquid-backed NFTs.
   * **Trade:** Users can trade their vault positions on supported marketplaces, providing liquidity and flexibility even during the lock-up period.
4. **Withdraw or Exit**:
   * Users can also redeem their liquidity during the lock-in period by paying a fee, using the Instant Redemption option—if enabled by our partners.
   * Users can claim their liquidity or bribes at the end of the lock-up period or just it let stay there and still earn all the yield - compounded.

<figure><img src="/files/VmJeTnOmVOG48XXcCh6s" alt=""><figcaption><p>Infographic 1: How NFT Time-lock Vaults works</p></figcaption></figure>

## Benefits of NFT Time Lock Vaults

### **For Partners:**

* **Assured Liquidity with Low User Acquisition Cost**\
  Projects can secure long-term liquidity without needing expensive marketing campaigns or high incentives to attract users.
* **Flexible Configuration**

  Our NFT Time-Lock Vaults support a wide range of setups:

  * **Single-sided deposits** (any token)
  * **Dual-sided deposits** (LP tokens)
  * **Custom vaults** tailored for DEXs, lending protocols, prediction markets, and more (anything)
* **Deep Integrations**
  * **Zapper v2 Integration:** Seamless cross-chain, one-click deposits
  * **Unified Borrowing System:** Borrow against vault positions with ease
* **Revenue Share from Vault Fees**\
  Partner projects earn a share of the vault-generated fees, creating an additional revenue stream and incentivizing long-term collaboration and sustainability.

### **For Users:**

* #### **Earn Without Strict Locking**

  Users can earn yield on locked assets **while remaining liquid** through their vault-backed NFTs. These Liquid NFTs can be used as collateral or freely traded on secondary markets.
* #### **Multi-Layer Yield & Bribes**

  [Users earn from **at least six distinct sources going up to 10.**](#how-it-works) These combined yield streams boost returns and increase the **backing value** of each NFT over time.
* **Exclusive Airdrops & Additional Rewards**\
  Vault participants receive **special incentives** like airdrops and perks from partnered protocols — unlocking more than just standard staking yield.
* **Flexibility with Zapper & Unified Borrowing System**
  * **Zapper v2:** One-click deposits using **any token from any chain**
  * **Unified Borrowing System:** Borrow USDC against **any position** in our ecosystem — LP tokens, Liquid NFTs, and more

<figure><img src="/files/OX2izLiCaHmAvHqoUWJV" alt=""><figcaption><p>Infographic 2: Sources of Yield in NFT Time-lock Vaults ( Min: 6 Sources )</p></figcaption></figure>


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.mydiscocats.com/product/nft-time-lock-vaults/guide.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.