TEPO SMART VAULTS & NFT-BACKED LOANS
Automated Yield & Capital Access Engine
Purpose of TEPO Smart Vaults & NFT-Backed Loans
The TEPO Smart Vaults & NFT-Backed Loans system is designed to make capital productive without forcing users to sell their assets.
This system exists to:
Provide automated, low-risk stablecoin yield
Allow users to unlock liquidity without selling NFTs
Turn TEPO NFTs into productive financial collateral
Increase capital efficiency and long-term ecosystem stickiness
Built around Tempo’s stablecoin-first design, this utility completes TEPO’s role as real DeFi infrastructure — not just an NFT project.
Core Philosophy
Make capital work, without forcing exits.
Smart Vaults & Loans are built for:
Passive yield seekers who want simplicity
NFT holders who believe long-term but need liquidity
Stablecoin users who want predictable returns
Contributors who want efficiency without unnecessary risk
This system removes the classic DeFi dilemma:
“Do I hold, or do I use my assets?”
With TEPO, you do both.
What Are TEPO Smart Vaults?
TEPO Smart Vaults are automated yield vaults that manage stablecoin liquidity on behalf of users.
Users deposit stablecoins, and the vault:
Deploys capital
Optimizes yield
Compounds rewards automatically
Manages risk transparently on-chain
Key Characteristics
✔ Stablecoin-only strategies ✔ Auto-compounding yield ✔ Risk-managed allocation ✔ Fully transparent on-chain performance
Supported assets include USDC and USDT, aligned with Tempo’s payments-first vision.
How TEPO Smart Vaults Work
1️⃣ User deposits stablecoins (USDC / USDT) 2️⃣ Vault allocates funds to the best-performing pools on TEPO Stable Swap DEX 3️⃣ Trading fees and incentives are harvested 4️⃣ Rewards are automatically compounded 5️⃣ Yield is distributed in:
Stablecoins (primary)
$TEPO (bonus incentives)
Users earn without needing to actively manage positions.
Vault Tiers & NFT Benefits
TEPO NFTs act as access keys, not paywalls.
Non-NFT User
Standard APY
TEPO NFT Holder
Higher APY
Upgraded NFT
Reduced performance fees
Legendary NFT
Priority vault access + best yield
The stronger your NFT, the better your vault conditions.
Fee Structure (Designed for Sustainability)
TEPO Smart Vaults follow a fair and transparent fee model:
Small performance fee (taken only from profits)
No hidden deposit or withdrawal fees
Fees are distributed to:
TEPO Treasury
$TEPO buybacks
Stablecoin reward pools
This ensures the system funds itself without over-extracting from users.
Risk Management & Capital Protection
Capital preservation comes first.
Smart Vaults are designed with: ✔ Stablecoin-only exposure ✔ No leverage by default ✔ Diversified liquidity pools ✔ Conservative strategy selection
All vault strategies are:
Publicly visible
Audited
Governed by $TEPO holders
Yield is earned through volume and efficiency, not risk stacking.
NFT-BACKED LOANS
Purpose of NFT-Backed Loans
TEPO NFT-Backed Loans allow users to unlock stablecoin liquidity without selling their NFTs.
This enables holders to:
Borrow against their NFTs
Maintain yield boosts and ecosystem access
Use NFTs as productive financial collateral
TEPO NFTs become financial instruments, not just collectibles.
How NFT-Backed Loans Work
1️⃣ User locks a TEPO NFT in a non-custodial loan contract 2️⃣ Protocol evaluates NFT strength based on:
Tier
Upgrade level
On-chain reputation and activity 3️⃣ User borrows stablecoins 4️⃣ User repays loan + interest 5️⃣ NFT is unlocked automatically
The user keeps ownership the entire time.
Dynamic Loan-to-Value (LTV) Model
Borrowing power scales with NFT quality and contribution.
Base
30%
Rare
40%
Epic
55%
Legendary
70%
Higher reputation and long-term participation unlock better terms.
💸 Interest Rates & Repayment
Interest is paid in stablecoins
Rates are dynamic and DAO-governed
Partial repayments are supported
No forced full repayments unless liquidation thresholds are breached
Interest flows into:
Smart Vault depositors
TEPO Treasury
Insurance & risk buffers
Liquidation Protection Design
Liquidations are treated as a last resort, not a punishment.
Protections include: ✔ Grace periods ✔ Warning notifications ✔ Partial liquidation options ✔ Conservative NFT pricing models
The system prioritizes user protection over aggressive enforcement.
Smart Vaults + Loans Synergy
Users can combine both systems for capital efficiency:
Deposit stablecoins into Smart Vaults
Borrow against TEPO NFTs
Use borrowed capital to earn yield
Compound returns without selling assets
This creates controlled yield loops without excessive leverage.
Why This Utility Matters
NFTs = Art
NFTs = Collateral
Manual yield
Automated vaults
Volatile assets
Stablecoin-first
Forced selling
Liquidity without exit
TEPO empowers users to hold, earn, and access capital simultaneously.
Summary
TEPO Smart Vaults & NFT-Backed Loans deliver:
Passive, automated stablecoin yield Liquidity without selling NFTs Capital efficiency and flexibility Long-term ecosystem stickiness
Together with:
NFT Forge (Identity & Access)
Stable Swap DEX (Liquidity Engine)
$TEPO Token (Economic Backbone)
This system completes TEPO as a full-stack DeFi ecosystem built for stability, sustainability, and long-term participation.
Last updated