✅Troves as NFTs

By tokenizing user troves into ERC721 NFTs, we allow new dynamic use cases

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.

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.

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