RentaFi and Unlockd New Cooperation
RentaFi is thrilled to announce its new cooperation with Unlockd, a decentralized cross-chain NFT rending protocol.
Overview
A community-centric, no-collateral NFT rental protocol, and platform that expands the community by unlocking the NFT utility, with the Unlockd, Rentafi is excited to share its new cooperation.
Unlocked is the decentralized cross-chain NFT rending protocol, that allows users to not only maintain the utility of NFT ownership but also provide NFT liquidity. Their biggest value is that borrowers can maximize the revenue of NFT by maintaining the utility of collateral NFT, and lenders can earn high interest by providing liquidity into the pool.
The core concept of splitting NFTs between their function as collateral and their intrinsic value resonates with RentaFi’s orientation of splitting the value of NFTs, and is a crucial protocol in maximizing the value and use cases of ownershipNFTs issued by RentaFi.
The combination of RentaFi and Unlockd is a protocol for the NFT x DeFi space, which facilitates the liquidation of NFT utilities by splitting the value of NFTs into use value and exchange value, while allowing lenders to manage their assets more efficiently. The combination of RentaFi and Unlockd establishes a pivotal position in bridging DeFi and NFT, which have long been leaders in the Crypto space.
Potential of Unlocked & RentaFi
What would be achieved by RentaFi, a protocol/platform for lending and borrowing NFTs, partnering with Unlockd, an NFT lending protocol?
As mentioned above, RentalFi splits the NFTs to be lent into use value and exchange value.
The use value is assigned to the borrower as a Wrapped NFT or a user role that replaces the owner role. The Exchange Value, on the other hand, is given to the lender as an OwnershipNFT, which represents the proof that the NFT was lent. This indicates that burning the OwnershipNFT will redeem the lent NFT.
Now, imagine that you are the lender. While lending NFTs to third parties, you can use the NFTs. To redeem the lent NFTs to outside marketplaces and NFT lending protocols. In other words, you could obtain additional financing by depositing your OwnershipNFT. As collateral with an NFT lending protocol while lending the NFT to a third party.
To give a simpler example, consider a situation where you want to sell that NFT while lending it out. The lender can sell the OwnershipNFT to a third party in the marketplace. Furthermore, the buyer can later redeem the NFT lent by Burning the OwnershipNFT.
Lastly, Unlockd plays a critical role in the operation of OwnershipNFTs and is essential in designing incentives for lenders.
About RentaFi
RentaFi is Non-collateral NFT rental platform and protocol. WrappedNFT and SmartWallet, ERC4907 realizes non-collateral. Therefore RentaFi resolves a big hurdle to require collateral to rent for borrowers and eliminates trust cost for lenders.
About Unlockd
Unlocked is the decentralized cross-chain NFT rending protocol, that allows users to not only maintain the utility of NFT ownership but also provide NFT liquidity. Their biggest value is that borrowers can maximize the revenue of NFT by maintaining the utility of collateral NFT, and lenders can earn high interest by providing liquidity into the pool.
SOURCE: MEDIUM
