#### What is GLYPH Vault (NFTX)? GLYPH [Vault](https://help.coinbase.com/en/coinbase/getting-started/crypto-education/glossary/vault) (NFTX) is an [ERC-20](https://help.coinbase.com/en/coinbase/getting-started/crypto-education/what-is-erc20) vault token that represents Non-Fungible Token ([NFT](https://help.coinbase.com/en/coinbase/getting-started/crypto-education/glossary/nft)) assets within the NFTX Vault. This innovative platform aims to create liquid markets for illiquid NFTs by transforming them into fungible ERC20 [tokens](https://www.coinbase.com/learn/crypto-basics/what-is-a-token), also known as funds. These funds can be traded on decentralized exchanges, providing a new level of accessibility and [liquidity](https://help.coinbase.com/en/coinbase/getting-started/crypto-education/glossary/liquidity-) to the NFT market. GLYPH Vault (NFTX) is part of the NFTX platform, which seeks to become a hub for NFT index funds, offering a simplified way for individuals to gain exposure to the NFT market without the need for extensive knowledge or expertise in individual assets. #### How does GLYPH Vault (NFTX) work? GLYPH Vault (NFTX) operates by allowing users to deposit their NFTs into an NFTX vault and [mint](https://help.coinbase.com/en/coinbase/getting-started/crypto-education/glossary/mint) a fungible ERC20 token that represents a claim on a random asset within the vault. There are two types of funds on NFTX: D1 funds, which have a 1:1 backing between a single NFT contract and an ERC20 contract, and D2 funds, which are Balancer pools that combine D1 funds. When a new fund is created, the account that sends the transaction is designated as the fund manager, who can then modify fund parameters like fees, supplier incentives, and NFT eligibility. Once the fund is finalized, control is handed over to the NFTX [DAO](https://help.coinbase.com/en/coinbase/getting-started/crypto-education/glossary/decentralized-autonomous-organization--dao-) to increase trustlessness. #### What are the potential use cases for GLYPH Vault (NFTX)? GLYPH Vault (NFTX) has several potential use cases. It can be used by individuals who want exposure to the NFT market but lack the time or knowledge to trade individual NFTs. It can also be used by arbitrageurs who can profit from price differences between NFT index funds and their underlying assets. Additionally, NFT liquidity providers can benefit from providing additional liquidity to one or multiple NFT index funds. In the future, NFTX aims to offer services such as ERC20 loans to NFT collectors, on-chain liquidity for NFT market makers, and randomized packs and gift cards for users. #### What is the history of GLYPH Vault (NFTX)? GLYPH Vault (NFTX) is part of the NFTX platform, which was created to make ERC20 tokens backed by NFT collectibles. The platform was built by a [decentralized autonomous organization](https://blog.coinbase.com/daos-social-networks-that-can-rewire-the-world-128b73732547) (DAO), a group of community members, contributors, and core members closely aligned to build the primary NFT index fund ecosystem. The NFTX token is a governance token that can be used to vote on proposals and steer the direction of the organization. The platform started with just D1 funds and has since evolved to include D2 funds. The long-term goal for NFTX is to develop a moat as the primary issuer of wrapped NFT funds.