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Why use RentaFi?
Background
Many communities issue NFTs, which include proof of community membership, game items, avatars and lands in the Metaverse, and various other unique utilities. And more NFTs appear every day and are traded in various marketplaces.
Sometimes, NFTs have high asset value due to their utility and branding, and are bought and sold on the marketplaces, often at high prices. In addition to these movements, many ways to use NFTs as assets are beginning to develop with the advent of NFTFi, including lending tokens backed by NFTs.
Problem
However, it is suggested that this high asset value may reduce the functionality of the NFT. For example,
- Multiple NFTs in the same collection owned by one person
- A situation where a person does not use the NFT's utilities but is psychologically reluctant to let go of an NFT that has become too expensive
- NFTs have ceased to function due to expensive NFTs being deposited as collateral
These cases cause NFT dysfunctional. In further, expensive NFTs are a major barrier to newcomers because of the high hurdle to purchase.
Using RentaFi to liquidate NFT utilities
RentaFi solves these problems by borrowing and lending NFTs whose utilities are deactivated. This allows the following to be achieved
Lenders: Getting another user to use the utility for another revenue opportunity
Borrowers: Using various NFT utility liquidity, including temporary experience use and commitments.
Community: Getting New community members and new revenue opportunities for the community
Minimize the risk
RentaFi takes measures to ensure the safety and security of NFT lending and renting.
RentaFi allows renters to rent NFTs without the need for collateral against the renter. This is because the borrower cannot freely move the deposited NFT, minimizing the risk of theft to the lender.
Furthermore, rentals completed on-chain minimize overdue risk to the renter, as returns are automated using a variety of rental methods.