Why are there different Vaults at Acronym?
Last updated
Last updated
Once you have activated your Acronym Vault you will have access to three vaults—Cold Storage Vault, Transacting 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 (and pending regulatory approval) and will be available soon. Stay tuned for updates!"
A Transacting Vault in Acronym's system is a specialized digital wallet designed for handling transactions with Acronym's centralized liquidity pool, particularly when trading on margin, accessing any other centralized liquidity pools, and making online payments as a traditional web3 wallet. Here are the key details:
Purpose:
The Transacting Vault is created when a customer wants to trade on margin or move funds for payments. It holds the customer's collateral, which can be used for margin trading. The assets in this vault remain the customer's property but are contractually pledged to Acronym in case of a margin call.
Structure:
Each customer has an individually segregated Transacting Vault, ensuring that assets are not commingled with others. This vault is separate from the Cold Storage Vault, which is used for holding assets securely without any trading activity.
Functionality:
The Transacting Vault can also function similarly to a MetaMask wallet, allowing users to trade via decentralized exchanges (DEXs) or other decentralized platforms.
Security:
Like other vaults in Acronym's system, the Transacting Vault is non-custodial, meaning only the user has control over their private keys, and Acronym cannot access or manipulate the assets.
