Ref: medium

How to rent NFTs on the Algorand Blockchain

  1. The daily rate, this is how much per day the lender requires you to rent the asset; typically the cost of the contract duration will be paid up front and not each day.
  2. The duration of the rental agreement, in days. Usually it should be no longer than 180 days, it depends on the platform whether there will be refund for the days not used in the contract.
  3. The deposit or lack of. Not every NFT rental arrangement requires a deposit, this is the downpayment provided by the renter and held in escrow until the asset is returned. If the NFT is not returned the escrow will trigger a liquidation function and release the borrower’s deposit back to the lender.
  1. Plug the deposit in to DeFI so that it can earn a yield and also encourages longer rental periods .
  2. Use the renter’s DeFi positions as their collateral for any rentals. I believe this is similar to liquid governance currently on Algofi and Folk’s Finance. Essentially the borrower never needs to pay a deposit because his assets on the lending protocol can actual be called upon if he doesn’t return the asset. This would boost rentals massively and the borrower is still earning APY on his assets.
  1. The borrower will receive a wrapped asset. This is actually a copy of the original NFT but just a temporary copy that will be burned after the fake is returned. Now this is popular with some but wrapped assets can’t be used as real in game assets, for example.
  2. You have good credit or track record of paying back NFTs.
  3. The lender may not require one because the NFT actually has no value but the utility is access to xyz…

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