Our collateral-free solution with an up-front payment enables NFT rentals without collateral. The way we enable this is by escrowing the NFT in our registry smart contract. The smart contract assigns a use right to the renter when the NFT is rented. The project that wants to make use of collateral-free renting must check our registry contract to see if someone is renting an NFT, therefore this solution requires integration between the reNFT smart contract and the project. This can be done as easily as pinging the reNFT SDK. Games and events can take advantage of this solution to enable rentals on their platforms without users risking their NFTs getting defaulted. 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 putting 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. Since Galaxy Fight Club uses the reNFT protocol, he decides to use the collateral-free rental solution with an up-front payment.
Jack wants to receive 20 USDC per day and is prepared to rent out his NFT for 14 days.
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.