> For the complete documentation index, see [llms.txt](https://docs.mydiscocats.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.mydiscocats.com/product/nft-time-lock-vaults/guide.md).

# 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>