Traditionally, NFT renting required collateral and trust that the borrower would return the original asset after the rental period. However, IQ Protocol eliminates such risks by creating an expirable version of the NFT that is given to the borrower instead of the original asset. This wrapped version contains all the original’s unique features and metadata. The original NFT is securely stored until the rental period is over and returned to the owner. With IQ Protocol, NFT owners can rent out assets they don’t use but don’t want to sell, and earn rental fees while their original assets are safe.
While concepts of borrowing NFTs exist in other platforms, such as Axie Infinity’s scholarship model and Pegaxy’s Pega rentals, IQ Protocol offers a unique approach to NFT lending and borrowing.
IQ Space has introduced a solution to address the issue of asset owners needing to be guaranteed the return of their assets in specific cases, such as when renting is finished. The solution involves Warpers, special NFTs that behave like the original assets and are rentable in the way users expect. Once a Warper is created, the overall renting process involves an original asset owner making a listing, allowing others to rent the asset on certain terms. The renter is then provided with a rentable version of the asset, called a Warped Asset, which is minted on Warper by IQ Space. The renter owns the Warped Asset until the rental period expires.
To avoid ambiguities and to stress that the protocol is not limited to ERC721, IQ Protocol avoids the use of the term “NFT.” Instead, They distinguish collections and instances (assets), calling them:
Original Collection — a smart-contract that is also a collection of digital assets (such as ERC721 = NFT, ERC1155, and so on) that are supposed to become rentable;
Original Asset — a token (an instant) of an Original Collection that’s produced by minting (this is something that users in fact own; in the case of ERC721, each one has an id);
Warper — a special IQ smart-contract that is deployed per Original Collection and makes Original Assets in that collection listable in an IQVerse (and, once listed, rentable);
Warped Asset — is an asset that a renter gets and that inherits various properties of the Original Asset being rented (including the id in the case of ERC721).`
Listing your asset for rental
Submitting your Assets/NFT for asset rental.
Listing an asset on the marketplace involves connecting your Metamask wallet, choosing the asset you want to list, switching to the supported network, and unlocking your NFT by confirming the transaction in your wallet. Once your NFT is unlocked, you can set the return period and base fee for your asset, which will be used to calculate the lister fee later during rental. After setting the listing terms, submit your asset and confirm the transaction in your MetaMask wallet. Once confirmed, your listing will appear on your profile page, and you can track its progress on the blockchain explorer of the selected network.
Renting assets and terms
Setting the return period term for the Assets/NFT that you want to borrow.
To rent an asset on the IQ Protocol, you need to visit the IQVerse page of the game you want to rent an asset for. Once there, choose the desired asset and set your rental conditions. If your wallet is not connected, you will need to connect it before proceeding.
After checking the information about the asset and setting the rental period, you will need to make a payment token approve for the protocol to perform the rental payment and charge the rental fee. Finally, click the Rent button, submit and verify the transaction in your wallet.
Once confirmed, your rental is confirmed, and you can see the rented asset in your profile.
IQ Protocol + The Red Village
The Red Village is a 3D dark-fantasy game built on the Polygon blockchain, which has recently closed an impressive $6.5M fundraising round. Check out the game trailer here.
The Red Village’s NFT rental marketplace by providing a risk-free solution for renting out digital assets. Through the use of wrapped, expirable versions of digital assets, players in The Red Village will be able to lend and rent NFTs in a secure and mutually beneficial way, which will allow them to earn passive income while retaining ownership of their assets. This will provide a great opportunity for players to maximize the ROI of their collections and utilize under-fought champions, potentially unearthing undiscovered gems in the process.
Moreover, IQ Protocol’s infrastructure will allow players to rent out any of their champions, including legendary ones, and in the future, they will be able to rent out a wide array of items, greatly increasing the scope of IQ Protocol’s service. Overall, IQ Protocol’s platform will benefit The Red Village by providing a secure and convenient way for players to monetize their NFT assets, while allowing others to gain access to the unique benefits they provide, thereby bringing to life the use cases of the assets.
It’s worth highlighting that IQ protocol has established a partnership with The Red Village, an Animoca-backed game that has recently launched. This collaboration brings an exciting opportunity for users, as the NFTs related to The Red Village can now be rented through the IQ Space marketplace.
I highly recommend checking out IQ protocol due to its highly promising NFT rental solution, which has the potential to revolutionize the industry. The most exciting aspect is the possibility of gasless NFT rentals in the future, which could greatly enhance the accessibility and user experience.
Just a quick disclaimer: Digital Strategies has made a strategic investment in this exceptional solution, further affirming its potential and value.
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