Collateral-Free
Lender's NFT gets staked into our smart contract and is not transferred to renter. Integrating projects use our API to obtain the list of renters.
Last updated
Lender's NFT gets staked into our smart contract and is not transferred to renter. Integrating projects use our API to obtain the list of renters.
Last updated
We have two flavours of our collateral free solution at the moment. One without the reward share component, and one with. Read on to learn how they operate on a high level.
Our collateral-free solution enables NFT rentals without collateral. We enable this by escrowing the NFT in our smart contract. The project that wants to make use of collateral-free solution must check our API to see if someone is renting an NFT, therefore this solution requires some integration, albeit minimal. If you're looking to integrate collateral-free rentals, check our integration guide.
This solution is similar to renting a house. The owner of the NFT decides the daily rental price, the currency he/she wants to get paid in, and the maximum rental duration. After the lender puts it up for rent, the renter can decide how long he/she wants to rent the NFT. The renter is required to pay the total rental price (daily rental price * rental duration). When the tokens have been received in the smart contract, the renter has access to the utility of the NFT.
Jack owns a Galaxy Fight Club NFT and wants to put it up for rent.
Jack wants to receive 20 USDC per day and is prepared to rent out his NFT for 14 days maximum.
Sam decides to rent the NFT for 7 days. Therefore he has to pay 140 USDC (7 * 20) + gas fees.
After 7 days, Sam’s use right expires and therefore he doesn’t have access to the NFT anymore.
Note, it is possible to terminate the rental before the full duration. So, Sam could have returned the NFT earlier and would get back the money from his up front payment that is proportional to unused time.
Our collateral-free reward share solution enables peers and guilds to automate the scholarship model that first appeared in Axie Infinity.
In this scholarship model, NFT owners rent out their NFT and share the earnings with gamers, also known as the 'Scholars'.
Axie Infinity doesn't provide a native in-game function to do this and therefore giving access to the NFTs, keeping track of earnings and payouts are all manual processes. As you can imagine, this is very time-consuming.
reNFT works closely together with major guilds to solve these inefficiencies by automating the whole process. We proudly present our reward share solution.
When a game integrates reNFT's reward share solution, guilds and peers are able to rent out their NFT and share the earnings with the gamer automatically.
Click here for a tutorial on how to lend your NFT.
Jack owns a Castle Crush NFT and wants to earn rewards from the game, but doesn’t have time to play. By playing the game, you can earn $ACS. Jack decides to lend the NFT via the reward share solution. While putting the NFT up for rent, Jack determines the reward share split percentage. In this example, we use 50/50.
Sam rents the NFT and starts playing the game. After playing for a week, he earned 100 $ACS. Because of the reward share split, Sam receives 50 $ACS and Jack does too.
You might want to share game rewards with third parties such as managers. While renting out your NFT, you can add numerous wallet addresses to split the game rewards with.
Example:
Lender: 45% of earnings
Gamer: 45% of earnings
Manager: 10% of earnings
If you want a specific person to be able to rent your NFT, you can use the whitelist feature. While putting your NFT up for rent, add the wallet addresses you want to be eligible to rent the NFT.
This is a very useful feature if you want to work with specific gamers you collaborate with.
