What is RentFun? RentFun is an NFT rental platform on Arbitrum that allows users to rent NFTs through delegation. Let’s find out what is special about this project with Weakhand in this article.
What is RentFun?
Question
In the near future, millions of people will live, work, play, and socially connect in different types of virtual worlds that we call the Metaverse. In these Metaverse, almost all valuable assets including: Avatars, in-game items, lands, virtual rooms, and virtual tickets will be released on the blockchain as NFTs.
Users should have the option to rent the usage rights of these NFTs like renting a house for their summer vacation instead of buying one.
There are currently 2 NFT rental solution models on the market:
- Rentals can accept: This model requires tenants to deposit more than 100% collateral in the form of $ETH or $USDC to borrow the initial NFT. Under this model, it would not make financial sense for the tenant since the tenant would only want to use the NFT by paying a very small fraction of the cost. At the same time, the NFT owner faces the risk of losing the original NFT forever because the renter has 100% ownership of the rented NFT.
- Wrapped NFT model: This model locks the owner’s original NFT and releases the version wrapped NFTs for tenants. Tenants can use this wrapped NFT version in the original issuer’s DApp. Imagine there are 10 rental platforms and each platform releases a new type of wrapped NFT. Initial NFT issuers must approve and identify 10 new wrapped NFT collectibles. This could cause technical problems and security risks for the original NFT issuers.
So how does RentFun solve this problem? Let’s find out below.
Overview of RentFun
RentFun is an NFT rental marketplace with a vision of providing easy and secure liquidity for NFT widgets. RentFun proposes a completely new access authorization protocol to ensure that NFT owners only share access rights of NFTs to renters.
Objects participating on the platform:
NFT owners: List their NFTs on the RentFun marketplace for rent. There are 2 rental modes:
- Public: All potential users on RentFun can rent NFTs.
- Private mode: NFT owners can choose to rent NFTs to whitelisted addresses, users not on the list will not be able to rent.
NFT owners can also choose 2 different methods to charge rental fees from renters:
- Fixed payment: By choosing this rental fee type, the tenant will pay all rental fees in advance.
- Share rewards: By choosing this type of rental fee, the renter will not have to pay an upfront rental fee, and the NFT owner will charge a certain percentage from the rewards the renter earns for using the NFT.
Renter: Pay a rental fee to rent the right to use the NFT from the NFT owner.
What is the RentFun difference?
RentFun proposes a novel access authorization protocol (ADP) solution to build an authorization relationship between NFT owners and renters.
In the PoS model, validators use tokens from token holders and put them to use for authentication. The more tokens, the more validation rewards the validator receives. This reward is then automatically divided between validators and token holders. In RentFun, the NFT owner becomes “Stakers” and the tenant will become “Validators”. No NFTs are sent to the tenant’s address and no new wrapped NFTs are created. Instead, renters have access to NFTs through authorization.
Core Team
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Investor
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Tokenomics
$RENT is the main token of the platform and is managed RentFun DAO. However, the $RENT token has not been officially released yet.
Information Channel of RentFun Project
- Website: https://rentfun.io/
- Twitter: https://twitter.com/rentfun_io
- Medium:
summary
RentFun is an NFT rental platform that applies a new rental model where renters can use 100% native NFTs into the original Dapp platform. Hopefully the information I have provided in this article has helped people have some idea about RentFun.