diff --git a/contracts/src/components/escrow.cairo b/contracts/src/components/escrow.cairo
index 66137bd..fc733ae 100644
--- a/contracts/src/components/escrow.cairo
+++ b/contracts/src/components/escrow.cairo
@@ -1,4 +1,3 @@
 pub mod escrow;
 pub mod interface;
 
-
diff --git a/contracts/src/components/escrow/escrow.cairo b/contracts/src/components/escrow/escrow.cairo
index d4ef1ac..4a1d8a4 100644
--- a/contracts/src/components/escrow/escrow.cairo
+++ b/contracts/src/components/escrow/escrow.cairo
@@ -13,6 +13,8 @@ pub mod EscrowComponent {
     struct Storage {
         // (owner, token) -> amount
         deposits: Map::<(ContractAddress, ContractAddress), u256>,
+        // token -> escrow address
+        escrow_contract_addresses: Map::<ContractAddress, ContractAddress>,
     }
 
     //
@@ -38,8 +40,20 @@ pub mod EscrowComponent {
             token: ContractAddress,
             amount: u256
         ) {
+            let erc20_dispatcher = IERC20Dispatcher { contract_address: token };
+
+            let balance = erc20_dispatcher.balance_of(from);
+
+            assert(balance >= amount, Errors::INSUFFICIENT_BALANCE);
+
             let locked_amount = self.deposits.read((from, token));
 
+            // Retreives escrow address for the token `token``
+            let escrow_contract_address = self.escrow_contract_addresses.read(token);
+
+            // Transfers funds to escrow
+            transfer_erc20(from, escrow_contract_address, token, amount);
+
             self.deposits.write((from, token), amount + locked_amount);
         }
 
@@ -50,18 +64,21 @@ pub mod EscrowComponent {
             token: ContractAddress,
             amount: u256
         ) {
+            let escrow_contract_address = self.escrow_contract_addresses.read(token);
+
             let locked_amount = self.deposits.read((from, token));
 
             // TODO
             // check for proof of deposit
             assert(true, Errors::PROOF_OF_DEPOSIT_FAILED);
 
+            // check deposit balance
             assert(locked_amount >= amount, Errors::INSUFFICIENT_BALANCE);
 
             // transfert of the amount `amount` from `from` to `to`
-            transfer_erc20(from, to, token, amount);
+            transfer_erc20(escrow_contract_address, to, token, amount);
 
-            // update locked amount 
+            // update locked amount
             self.deposits.write((from, token), locked_amount - amount);
         }
     }