Renting NFT tokens
NFT tokens can now be leased - you continue to own the token, expect to sell it as the market grows, and in the meantime, get income from leasing your asset for temporary use.
2There are two ways to lease NFTs:
- Collateralized NFT lease.
The owner of a token places his asset on a platform that offers other users to borrow NFTs. All terms are agreed upon with the owner of the token and entered into a smart contract, then the borrower receives the NFT token in his possession.
- NFT collateral-free lease
The process for leasing a token is exactly the same as for a collateral-free lease.
But there are two differences:
- Instead of the original token, the borrower receives a wrapped NFT that has the same characteristics as the original and is secured by it.
- The borrower does not need to leave collateral for the duration of the asset lease. The wrapped NFT token is burned at the end of the lease term.
And what are the benefits of leasing an NFT token for the borrowers themselves?
- Access to exclusive content or "gated communities." NFT tokens often serve as a kind of pass for the owner.
- Play-to-earn industry. In every P2E game you can earn tokens, and the earnings depend on your character level.
- Move-to-earn industry. For example, you can rent NFT sneakers and see if you should buy them for yourself.