Chainlink Introduces NFT Loans and Rentals in Blockchain Game, With Massive Profit Potential in Billion-$ Market – Report
- Chainlink has introduced NFT lending and rental.
- This will enable NFT owners to earn income from their NFTs and provides a more affordable way for individuals to access special benefits and tools that come with owning an NFT.
In a blog post, Chainlink explained how, like other blockchain assets, NFTs can be built into smart contracts, unlocking a range of advanced features that, like DeFi, were once unthinkable for fungible tokens.
lending and renting gives players a new way to monetize their holdings while allowing game developers to create new revenue streams. Why rent an NFT? Many NFTs allow their owners to access special benefits, tools and gaming experiences.
The concept behind NFT Lending and Renting?
Basically, individual players will give temporary ownership of their NFT to other players in exchange for money as a reward. For blockchain games, players will lend in-game assets, such as characters or virtual land, to someone else for a certain amount of time. in a tweet Chainlink. In a Tweet, chainlink said that this will be another source of revenue for developers.
#NFT lending and renting gives players a new way to monetize their holdings while allowing game developers to create new revenue streams.
Why rent an NFT? Many NFTs allow their owners to access special benefits, tools and gaming experiences. pic.twitter.com/9Zjw4ZZ9h0
— Chainlink (@chainlink) 20 April 2023
Borrowers will get to use these assets without having to buy them, while lenders can make a little extra money from the fees that borrowers pay. It’s a win-win situation! In addition, borrowers can show off their cool NFT as a status symbol online.
Also read: The Chainlink BUILD Program Welcomes Akron Finance to Accelerate Adoption of the Akron Crossing Network in the DeFi Space
Types of NFT lending and leasing
When it comes to NFT lending and leasing, there are two main types to know about security and uncertainty.
NFT lending with collateral: With collateralized NFT lending, borrowers must post some form of collateral, usually cryptocurrency or another NFT, to ensure that they will be able to repay the value of the NFT they are borrowing. All this is handled through a smart loan contract, which ensures that everyone plays by the rules.
Unsecured NFT lending: This requires no security. Instead, the lender must rely on trust and reputation systems to determine whether the borrower is trustworthy enough to repay the borrowed NFT. This setup usually comes with higher interest rates since the lender is taking on more risk without collateral.
Upside to Chainlink We introduce lending and renting
One of the biggest reasons to rent an NFT is that it gives you access to special benefits and tools that come with owning that NFT, such as exclusive content, communities, events, or the ability to create another NFT.
Renting an NFT is a more affordable way to enjoy these benefits without having to buy an NFT. And NFT owners can monetize their NFTs, which might otherwise just sit in their wallets.
For players, renting out their in-game assets to other players can be a great money maker. Borrowers get access to the NFTs for a short period of time, allowing them to try out new games and gain access to expensive or rare items and in-game experiences. It’s a win-win for everyone involved.
Game developers can also take advantage of NFT lending by creating their own lending marketplaces that allow players to trade in-game assets. This could create a new revenue stream for developers without having to charge players for downloadable content.
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Finally, chainlink NFT lending could open up new business opportunities in the metaverse by allowing people to lend avatars, virtual land or real estate represented as NFTs. It’s an exciting new frontier for entrepreneurs and investors!
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