NFT Rental Marketplace

Inspired by OpenSea, users will be able to rent out their NFTs for a price the token owner pre-determines over a set time interval. This allows:

  • New gamers/dApp users to access powerful/rare tokens for a fraction of the cost of buying them
  • Token owners to “level” their game assets up without grinding
  • Token owners to setup a passive income stream
  • A contract that could potentially be expanded on in the DeFi space

Basic MVP Functionality would be:

  • Owners can create a Vault where tokens available for rent are stored with their price information
  • Users can browse owners’ listings and rent individual tokens (Simple React UI)
  • Once the rental period expires, user loses access to the NFT

Expanding on this:

  • Users would be able to list and rent NFTs in bundles
  • Users would be able to make an offer to rent an NFT that is not listed
  • Add an affiliate URL system to share the rental commission

Excited about this one! Curious to hear your thoughts and ideas :slight_smile:

11 Likes

This is a great idea to explore and develop.

Allowing an open market model which allows for owners to input the amount of time they want their assets to be leased for and users the amount of time they would like to rent it for, would be an effective way to see what lenders and users want. It will also allow for the discover of the fair value for rentals.

One factor to consider is that some NFT’s (such as CryptoKitties) may lose value once they are rented and breed.

NFTs are still in their infancy, but once NFTs go mainstream, the size of the NFT leasing market could be massive. Good luck with your project.

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@LuckyCat Thanks! Yeah, that’s definitely something to think about.

I probably wouldn’t lend a valuable virgin kitty… but I would lend a middle-tier kitty to someone for breeding or use in a KittyVerse expansion. Having the option would be cool!

Time to wrap my head around capabilities and references :nerd_face:

I don’t think I fully understand the idea you are presenting here, a little technical for me! however I am very interested in thinking how to make the real state sector more efficient. Also on the other side of the same sector, I would like to think about ways of making it easier for smaller investors and even investors for any place in the world to buy properties in… let’s say Mexico. In the Mexico case, and I believe in many other countries, it is hard for foreigners to invest in real state, also there is the trust issue. How can we build a model where an American could buy a part of property, together with other smaller investors from US or any other country, to profit from the capital gain of the property after 2-3 years. So the sale is made and profits are shared in accordance to the percentage of the investment. Here in Mexico there is a company that is trying to building something interesting, check it out:

Would love to keep up with the conversation around this sector :smiley:

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@ann.zucco Very cool! That would definitely be possible using Flow and smart contracts :slight_smile:

Navigating the legal side of things might be tricky, but it’s worth looking into for sure. I’d be searching the properties every day!

More than legal, just the part of distributing funds. When the property is sold the distribution of funds should be fast and transparent to all involved.

Technically, as capabilities in Cadence allow for a revocable access to an interface. You might be able to build this idea out without the owner of the token losing actual ownership/possession of the resource.

Maybe they give the token to a contract that holds it and the contract makes it available to the account that is renting it via a capability link?

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Boom! That’s what I was thinking too :+1:

Instead of actually transferring the token from their account, they just pass a reference to an interface for a limited time. I think Cadence will be a perfect fit for this.

@daniel I was just creeping the general channel in Discord and see you were already looking into this idea. Did you try it out?

Hi @ebreuers,

I haven’t tried it myself, but @avcd on Discord has a cool implementation for renting capabilities.

The main idea revolves around putting the NFT in a box/frame and renting the box/frame itself.
In Cadence resources can own other resources.

If the box/frame is destroyed the contents are returned to the owner.

4 Likes

Oh, right on! That’s an awesome example to work from :slight_smile:

Thanks @daniel!

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I like the rental idea. I don’t know deep tech, but I am familiar enough. As you had mentioned, bridging the DeFi space is very cool. That is where my head is at. I’m from that space. I’m thinking to marry institutional funds with NFTs - Art, Cars, Wine basically anything rare and collectable. Hedge funds want in on crypto, and rare collections to show off their wealth is part of their ego. I would love to figure this out.

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Ah man, that would be great. The team and community are trying to nail down some extensibility and composability features for NFTs that should make rentals a little easier to implement.

I think it’s “possible” to handle the rental part right now, but allowing the person who rented the NFT to actually use it for anything would be tough as we can’t predict how to interface with any custom code beyond the existing NFT standard.

Thanks for the update and feedback.

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Here this may inspire you: https://nft20.io/

Collateralized NFTs

By the way I spoke to someone on discord about this, because people are using escrow agents in the NBA top shot marketplace to rent cards to complete challenges. When I asked about it, someone chimed in that is not officially supported and someone privately told me the top shot team would prefer people owning not renting.

Remeber the FLOW team still needs to APPROVE your dapp before it goes on the mainnet. At least now.

Hi @Gianni-PopMint what is the process with using the Flow technology to build a product? If you use the technology does Flow have to approve how you are using it?
Do Flow charge a rate to use their technology?

Right now I read they have to audit it for security and then approve it. Probably an important step to make sure most applications that get launched work and don’t get hacked and then have deal with bad press. But like anything controlled now or later… they decide at the moment what goes on. I can only imagine they want to do the right thing by people who want to build on their blockchain as that builds value overall.

Account Creation: 0.001 FLOW
Transaction Fee: 0.000001 FLOW

On blockchain there needs to be a transaction fee in order to incentivize the stakers to verify and run the network.

Great thanks for the reply. Sorry for my ignorance but what represents a transaction and creation of an account?

A transaction is any action that needs to take place in the network, sending an object, running an action in the smart contract, etc. As for the account creation, that will probably be creating an account to hold your objects, you tokens, whatever if created, not sure why there is a cost there, compared to just running a transaction.

Being that this thread is about the NFT rental marketplace, there maybe a better place for your questions in another category…

Thanks GIanni that answers them perfectly, thank you

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