Delegation
Retain NFT utility via Delegate Cash
What is Delegate.cash?
Delegate Cash provides a secure solution for safeguarding valuable assets on the blockchain while still participating in NFT airdrop claims, token governance, and other activities. Users can connect their cold and hot wallets, allowing the hot wallet to operate on behalf of the cold wallet - like crypto power-of-attorney.
This solution can be integrated into various applications such as login flows, token-gated minting and claiming, gaming actions, and DAO governance. It allows for a safer and more convenient way for users to interact with applications from their hot or mobile wallets without compromising the security of their cold wallet assets.
How does it work with Zharta?
When a loan is originated, the NFTs provided as collateral are moved into a smart contract escrow. At that moment our protocol assigns delegation powers to the wallet that originated the loan, allowing it to act as if it still had the NFTs in various situations.
This step is done by default and you can make use of your NFTs utility, if the protocols support delegate.cash, by connecting the wallet that requested the loan to the given protocol.
When the loan is repaid, or if it defaults, the delegation is voided.
You can check the delegation details using Etherscan.
By pasting your wallet address and clicking Query, Etherscan will reply with a the following type of string:
[3, cold_wallet_address, hot_wallet_address, NFT_contract, token_id]
In this case, cold_wallet_address is Zharta's vault, hot_wallet_address is the wallet that requested the loan.
For additional information regarding delegate.cash and its use cases, please check Delegate Cash's documentation.
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