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Rental solutions

Collateral-free rental​

Our collateral-free solution 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.

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Traditional rental​

Traditional rental 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.

Example:​

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.

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.

Revenue share rental (Soon)​

If you’re into gaming, you’re probably aware of scholarships in Axie Infinity. A scholarship means that the owner of the NFT gives access to a gamer for free and they split the rewards that the gamer has generated by playing with the NFT.

reNFT is building a trustless solution for revenue share rentals.

Example:​

Jack owns a Galaxy Fight Club NFT and wants to earn rewards from the game, but doesn’t have time to play. By playing the game, you can earn $GCOIN. Jack decides to lend the NFT via the collateral-free rental solution of reNFT. While putting the NFT up for rent, Jack determines the revenue 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 $GCOIN. Because of the revenue split, Sam receives 50 $GCOIN and Jack does too.

Collateralized rental​

Our collateralized solution transfers the NFT to the wallet of the renter. This means that the renter can do anything he wants with the rented NFT. Therefore, collateral is required to compensate the lender if the NFT is not returned. This is a huge barrier for rentals because most of the time people rent an NFT due to a lack of funds to buy it themselves.

Since the NFT is in the wallet of the renter, an integration with reNFT is not necessary and therefore you can use the NFT as if you were the owner of it. This is the biggest advantage of collateralized rentals, but there are also a lot of disadvantages. A few of them are:

  • A collateral is a huge barrier for people to rent because rent often makes sense due to a lack of funds
  • If the value of the NFT changes and becomes higher than the collateral, the lender is at risk
  • The renter can use the NFT as collateral for a loan without asking permission from the lender

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