RentFun | Liquidity For NFT Utility
  • Introduction
  • Marketplace
    • Testnet Guide
  • Access Delegation Protocol
    • Three Models
    • Vault Account
  • Early Bird Program
  • Security Report
  • Tokenomics
  • Integrations
    • RentFun-JavaScript-SDK
      • Installation and Setup
      • Interfaces
      • Integration Steps
  • FAQ
    • General
    • Early Bird Program
    • WonderBird NFT
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On this page
  • The Problem That RentFun is Solving
  • Current Solutions in The Market
  • 1) Over-collateralized Renting.
  • 2) Wrapped NFT Model.
  • RentFun’s Solution
  • Key Components
  • Why Choose Arbitrum
  • Key Features
  • User Scenarios

Introduction

RentFun is an NFT renting marketplace that enables the users to rent original NFTs through Access Delegation on Arbitrum.

The Problem That RentFun is Solving

Let’s talk about why the team wants to build RentFun first.

In the near future, millions of people will live, work, have fun and make social connections in different kinds of virtual worlds which we know as Metaverses. In these Metaverses, almost all the valuable assets, including Avatars, Game Items, Lands, Virtual Rooms and Virtual Tickets, will be issued on blockchain in the form of NFTs.

These NFTs in Metaverses have their own unique utilities which allow users to have unique experiences. Users can even have an income from owning and monetizing their NFTs,

Users should have the option to rent the usage rights of these NFTs, just like renting a beautiful house for your summer holiday instead of buying one.

So, the problem that RenFun is solving is very clear: Make the utility of NFTs more liquid in Web3.

The most important and unique feature of RentFun is that RentFun enables anyone to rent the original, not the wrapped, NFTs safely and easily through the rentable address.

Current Solutions in The Market

Currently there are two models of NFT renting solutions in the market:

1) Over-collateralized Renting.

This model requires the renter to deposit over 100% collaterals, in the form of $ETH or $USDC, to borrow the original NFTs. Under this model, it is not financially sensible for the renters since the renter just wants to use the NFTs by paying a very small fraction of the cost.

At the same time, the NFT owners face the risks of losing the original NFT forever since the renter has 100% ownership of the rented NFTs.

2) Wrapped NFT Model.

This model locks the original NFTs of owners and issues a totally new wrapped NFT to the renters. The renters can use this new wrapped NFT in the original NFT issuers’ DApp, and the original NFT issuers have to accept these new wrapped NFTs.

Imagine there are 10 renting platforms, and each one will issue a new type of wrapped NFTs. The original NFT issuers have to accept and identify 10 new collections of wrapped NFTs. This can cause technical trouble and security risks for the original NFT issuers. The majority of original NFT issuers will not accept this model to let renters interact with these wrapped NFTs.

RentFun’s Solution

RentFun is an NFT renting marketplace with the vision of providing easy and safe liquidity for NFT utilities. RentFun proposes a brand new Access Delegation Protocol to ensure that the NFT owners only share the access rights of the NFTs to the renters.

RentFun aims to make the NFTs renting:

  • Totally safe for NFT owners without losing 100% control of the NFTs.

  • Low cost for Renters to rent the original NFTs, not the wrapped NFTs.

  • Technically acceptable for the original NFT issuers.

With RentFun, the users can:

  1. Rent the original NFTs without any collateral through RentFun’s Access Delegation Protocol, which will allow the NFT owners to only share the access rights of the NFTs to the renters.

  2. Share the NFT-accrued rewards between the NFT owners and renters automatically.

Key Components

RentFun mainly consists of the following three components:

  • Renting Marketplace. RentFun will build an uncollateralized, permissionless and safe renting marketplace on Arbitrum One and Nova. It will allow the renters to rent 100% original NFTs from the NFT owners.

  • Access Delegation Protocol (ADP). RentFun will build an ADP to make it possible for NFT owners to delegate the original NFTs’ access rights to the renters, so that the renters could be identified as NFT users to interact with the NFT issuer’s DApp (such as games or Metaverse).

  • RentFun SDK. RentFun will provide a SDK for the NFT issuer to integrate easily, so that they could fetch the access delegations between NFT owners and renters.

Why Choose Arbitrum

First of all, we care about the transaction cost for renters.

We know that the gas fee of one transaction on Ethereum mainnet may cost tens of dollars if there is heavy traffic on the Ethereum network, or the $ETH price is exceedingly high. Therefore, the gas fee on the Ethereum mainnet could be much higher than the actual rental fees. This renders implementing the rental transactions meaningless on Ethereum, even though the NFTs on Ethereum mainnet make up the largest market share.

Secondly, Ethereum’s future will be modular and Layer 2 will take the main responsibility for the high scalability of on-chain transactions.

Among all the Layer 2 solutions right now, Arbitrum One and Nova are attracting the most number of games and NFTs activities, especially the fast growth of the Treasury game ecosystem. We think that Arbitrum will have the chance to become the most adopted Layer 2 solution for games and NFTs.

We have decided to become the first renting marketplace on Arbitrum, and hope that the Arbitrum community will welcome RentFun.

Key Features

  • No Collaterals Required. RentFun will not require any kind of collateral from the renters, and only the rental fees will be charged from the lenders.

  • Rent 100% Original NFTs. RentFun will not issue any kind of wrapped NFTs to the renter. The renters will be able to rent the 100% original NFTs on RentFun’s marketplace.

  • Fully Secure for Lenders’ NFT. RentFun creates an Access Delegation Protocol between renters and lenders so that the lenders’ NFTs are safely stored in a contract address. The renters will only have the delegation rights of this contract address to login and interact with the NFT issuers’ platform.

  • Automatic Rewards Split. All the rewards earned by renters with the NFT rented will be first claimed into the contact address. Therefore, RentFun can support the lenders to set the rewards split percentage between renters and lenders.

User Scenarios

There may be lots of user scenarios in NFT renting, including:

  • Game Items

  • Metaverse Land

  • Music NFTs

  • Avatar

  • Membership Pass

  • Tickets

  • NFT Domains

Inspite of so many scenarios listed above, RentFun will only focus on the following 2 kinds of NFTs in the first stage:

  • Games.

  • NFT with Access Utility, like Membership Pass or Tickets.

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Last updated 1 year ago