> For the complete documentation index, see [llms.txt](https://bitprotocol.gitbook.io/bitprotocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://bitprotocol.gitbook.io/bitprotocol/v2-features/troves-as-nfts.md).

# Troves as NFTs

 The protocol introduces key advantages, such as **automated management** and **credit delegation**, which streamline financial operations and offer greater flexibility. 

Moreover, the ability to engage in **secondary markets** and harness DeFi composability significantly expands the potential for optimized returns and strategic maneuvers. 

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Users can now have multiple independent positions within a single EOA wallet, eliminating the need to for multiple wallets when performing advanced borrowing strategies in BitProtocol. 
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Troves can be custodied by smart contracts on behalf of a user to enable a wide variety of use cases and composability. Troves also can be atomically and securely managed by a third-party or decentralized system with little or no counterparty-risk.

> **User now can open positions can be sold OTC rather than being closed or liquidated.**

Here's a  list of benefits this feature brings to their users:

* **Automated management**
  * Positions can be delegated to automated systems without giving up wallet control (BOTS)
* **Credit Delegation**
  * Users with excess collateral can delegate borrowing power
  * Enables permission-based borrowing limits and rules
  * Creates potential for undercollateralized lending to trusted parties (Similar to Aave's credit delegation but with NFT-native capabilities)
* **Secondary Markets**
  * Enables trading of positions without closing/reopening
  * Allows users to exit positions by selling rather than repaying
  * Potential for specialized markets for distressed CDPs
* **DeFi composability**
  * Troves can be used as collateral in NFT lending protocols
  * Enables yield strategies without unwinding positions
  * Bundle multiple Troves into managed vaults (like Yearn)
  * Create derivative products based on Trove portfolios