Why are there different Vaults at Acronym?
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Once you have activated your Acronym Vault you will have access to three vaults—Cold Storage Vault, Trading Vault, and DeFi Vault.
Acronym's Cold Storage Vault is a key feature of its non-custodial, hybrid wallet solution designed to provide unparalleled security for digital assets.
Offline Storage
The private keys to your digital assets are stored in geographically distributed, offline Cold Storage facilities. This means that your private key never touches the internet, significantly reducing the risk of cyberattacks.
Multi-Layered Security
Access to the Cold Storage vault is protected by a master password and/or multi-factor authentication (MFA). The master password decrypts a portion of the private key stored in cold storage when you need to access your vault.
Transaction Signing
Even when you make a transaction, your private key remains locked in cold storage. Instead, a secure digital signature is generated, authorized by your master password, to verify the transaction without exposing the private key.
Non-Custodial
Acronym Vault is non-custodial, meaning only the user has access to their private keys. Neither Acronym nor third parties can access or manipulate the assets stored in the Cold Storage Vault.
This combination of offline storage and multi-layered access controls ensures that the Cold Storage Vault provides unparalleled security for your digital assets.
The Acronym DeFi Vault is a feature designed to enable decentralized finance (DeFi) transactions, such as swaps and decentralized trading, through decentralized exchanges (DEXs). It allows users to manage their assets in a self-custodial manner, ensuring that all transactions are done on-chain and traceable without being held in a commingled wallet. This vault is part of Acronym's broader goal to provide a one-stop-shop for customers, integrating both centralized and decentralized financial services.
The DeFi Vault interacts with other vaults, such as the Cold Storage Vault, but it does not get "Synced." Instead, it interacts with the Cold Storage Vault via Layer 1 transactions. This setup ensures that the DeFi Vault remains focused on decentralized transactions while maintaining a connection to other vaults for broader functionality. Additionally, the DeFi Vault is part of Acronym's strategy to offer users full control over their assets, emphasizing security and transparency in decentralized finance.
🚧 This feature is currently in development (pending regulatory approval) and will be available soon. Stay tuned for updates!
The Acronym Trading Vault is a centralized exchange that facilitates the trading of digital assets, including both spot and leveraged trading. It operates with a central limit order book and a matching engine, enabling users to trade a variety of virtual asset (VA) pairs, including VA-VA and VA-fiat pairs. As a centralized platform, the exchange manages the order matching and execution process, but it does not act as a counterparty to trades. The platform is designed with full regulatory compliance in mind, ensuring that all operations adhere to the relevant legal and financial requirements, providing users with a secure and trusted environment for trading.
