- NFT lending and renting allows for the borrowing or renting of NFTs in exchange for a fee.
- NFT lending and renting creates opportunities for players to earn income on their NFT holdings and for game developers to create new revenue streams.
NFT Lending and Renting in Blockchain Games
Chainlink has explored the concept of NFT lending and renting and its impact on GameFi. NFTs have been adopted in multiple major industries, and they can be integrated into smart contracts to enable a wide range of sophisticated functionality.
#NFT lending and renting are providing a new way for players to earn yield on their holdings while enabling game developers to create new revenue streams.
Why rent an NFT? Many NFTs enable their owners to access special perks, utilities, and gameplay experiences. pic.twitter.com/9Zjw4ZZ9h0
— Chainlink (@chainlink) April 20, 2023
NFT lending and renting is providing a new way for players to earn income on their holdings while enabling game developers to create new revenue streams by creating custom NFT lending marketplaces for their gaming ecosystem.
Types of NFT Lending and Renting
NFT lending and renting involves temporarily transferring ownership of an NFT in exchange for a fee. In the context of blockchain gaming, this means lending or renting in-game assets such as characters, items, or virtual land, allowing borrowers to access and utilize these assets for a specified period without having to purchase them. NFT lending and renting primarily come in two forms: collateralized NFT lending and uncollateralized NFT lending.
Benefits of NFT Lending and Renting
NFT renting is a more affordable way for borrowers to access the benefits of some premium NFT utilities without actually having to buy the NFTs. In return, borrowers can access in-game NFTs for short-term use, allowing them to access new gameplay frontiers or utilize expensive or rare in-game items and experiences.
The biggest benefit for gaming NFT holders is the ability to earn income on their in-game assets by renting them to other players. Game developers building games with an in-game economy can create first-party NFT lending marketplaces that enable players to transact with NFTs that the game is integrated with, introducing an additional revenue stream without having to monetize downloadable content.
How NFT Lending and Renting is Advancing GameFi
NFT lending and renting are helping game developers bring GameFi adoption to new heights by increasing access to unique in-game experiences and broadening the potential scope of blockchain gaming applications. By enabling more players to access rare or expensive NFTs without having to purchase them, NFT lending marketplaces allow a wider range of players to access various in-game activities and gameplay experiences.
This increased accessibility enabled by NFT lending helps encourage innovation, leading to the creation of new game mechanics and sustainable revenue models, particularly for smaller game development studios.