NFTs – non-fungible tokens are the new age of digital representation. They are cryptographic digital assets that can represent anything, ranging from art to videos, gaming merch, real estate assets, audio, GIFs, etc.
According to Coinmarketcap, the global NFT market is worth $442 billion, about 54% lower than the global crypto market cap. Over time, many blue chip projects have positively impacted trading, collection, and digital representation with NFTs.
However, most valuable projects are always expensive. For instance, the current floor price for Bored Ape Yacht Club is 79 ETH, Azuki is 14 ETH, and CryptoPunks is up to 100 ETH. Many other NFT collections have thousands of enthusiasts who don’t have enough money to buy them.
However, have you ever liked an NFT, but the floor price is too much for you? With NFT renting, you don’t have to wait another day before owning an NFT.
As the name implies, you can temporarily own any NFT by renting them on NFT Renting platforms without buying them. If you want to own special NFTs by renting them, this article will take you through a detailed guide on the basics of NFT renting, how it works, and how you can rent an NFT easily.
What is NFT Renting?
NFT renting simply means borrowing an NFT. However, it’s not that simple – when you borrow an NFT, a time-based smart contract that acts as an escrow is created.
With this, you can deposit rent funds. After the renting period, the NFT will be returned to the owner. NFT renting is becoming more popular because newbies, collectors, and investors don’t need to buy an NFT before gaining exposure to them.
However, what’s the point of renting NFTs instead of owning them outright? For NFT owners, lending out NFT is a source of passive income. Lenders charge rental fees for other people to use their NFT over a period of time.
Meanwhile, the high cost of some NFT collections makes NFT renting a more suitable option. You can enjoy the privileges of owning an NFT without going through the financial burden of buying it.
Aside from this, it also gives room for flexibility and more use cases for NFTs. For people who need NFT for a short time, renting is the perfect option.
Then, there are people who want to try before actually buying. This way, they won’t have to make large financial commitments; therefore, there is no risk of value loss or NFT becoming obsolete.
Ways to Rent NFTs
There are many platforms where you can rent NFTs. However, the forms of renting differ in the presence or absence of collateral. NFT renting can be:
Collateral Renting: Here, the NFT renting marketplace provides an avenue for NFT owners to put out their NFTs for rent for other NFT enthusiasts to rent or borrow them.
In collateral-based renting, the renter pays an interest fee based on the interest rate specified in the renting process. Once the renter agrees to the terms, a smart contract will be created to document the process and their price.
The smart contract also specifies the terms and conditions of the renting, and it is effective once the renter agrees to the terms. Once this is done, the renter gets the NFT till the return date, when the smart contract becomes inactive.
Collateral-Less Renting: In this type, the renter does not necessarily need to lock up their asset as collateral. Once the owner lists their NFT for rent, anyone interested can rent the NFT for a rental fee.
Once both parties agree on the fee and the rent duration, a smart contract is created, and the renter gets the NFT. The smart contract becomes inactive once the duration is over and the renter returns the NFT.
After deciding the one you prefer, look for a suitable NFT renting marketplace, fund your wallet, and rent an NFT. Some of the top NFT renting marketplaces are:
- IQ Protocol
- Double Protocol
- UniBox DAO
Renting NFT on reNFT
reNFT is a multi-chain NFT rental protocol built in partnership with Rarible to facilitate NFT renting. The protocol allows open and permissionless NFT renting for Ethereum’s ERC-721 and ERC-1155 NFTs.
reNFT is easy to use. As an owner, you must list your NFT and specify the price, maximum duration of rent, and fees. The marketplace serves as an escrow or guarantor that holds your collateral.
If NFT is returned, the renter gets their collateral. Otherwise, the owner can seize the collateral.
Here’s how to Rent NFT on reNFT
- Go to reNFT
- Choose preferred NFT
- Connect wallet
- Rent NFT
Go to reNFT
Renting on reNFT comes with two options. You can rent an NFT with collateral or without collateral. The latter provides a more convenient and flexible option to own NFT without risking your assets.
To start, go to the reNFT marketplace at www.market.renft.io on your web browser.
Choose preferred NFT
On the homepage, click on RENT to view available NFTs.
If you’d love to rent NFT without strings attached, go for the COLLATERAL FREE NFTs. However, you can rent more rare and valuable NFTs in the COLLATERALIZED section.
After exploring the available options, click on a preferred NFT and input the RENT DURATION. Maximum rent duration is seven days, after which the NFT will be returned to the marketplace.
Review the rent amount and connect your wallet. Approve the connection in the prompt that pops up in your wallet.
Finally, complete the transaction by confirming the token approval prompt in your wallet. Voila! You’re now a proud owner of an NFT.
Renting NFTs on IQ Protocol
IQ Protocol is a notable DeFi protocol for risk-free and collateral-free asset borrowing. The protocol supports both fungible and non-fungible tokens.
IQ Protocol is worth over $6.5 million in Total Value Locked (TVL). Therefore, you can rest assured that they are well established. However, any token you rent with IQ Protocol is not transferable since there is no collateral.
Here’s how to rent NFT on IQ Protocol:
To rent an NFT on IQ Protocol, navigate to market.iq.space. On the homepage, click CONNECT from the top navigation bar to link your wallet to the platform.
After connecting your wallet, scroll down and explore the NFT collections available for rental.
Select any collection and click on any NFT you’d like to rent within the collection. On the rental page, specify the rent duration and click on RENT. Approve the transaction in your wallet, and that’s all.
Renting NFTs on Double Protocol
Double Protocol is one of the first NFT rental platforms for metaverse and in-game NFT assets. The platform uses an innovative doNFT system to facilitate collateral-free NFT renting.
Once a renter pays the renting fees, a doNFT is minted. The doNFT is an ERC-721 extension of an NFT with extra details like the duration of rent, and it will expire once the time limit is reached. However, NFT holders can do anything with their NFT.
For instance, building metaverse experiences, building properties and hosting events. doNFT holders can also lend out their NFT to earn extra rewards.
Here’s how to rent an NFT on Double Protocol:
To rent NFT on Double Protocol, go to www.double.one on your web browser. On the homepage, click CONNECT WALLET to link your wallet to the platform.
After connecting your wallet, click EXPLORE from the homepage to check out available NFT collections.
From any collection, click on the preferred NFT asset to view its details. On the NFT page, you can check out its attributes and metadata before tapping the RENT button.
Indicate the rent duration and review the rent fee before finally clicking on RENT to finalize the process. Approve the transaction in your wallet to confirm the process.
NFTs are growing beyond imagination with their ingenious blend of entertainment, innovation, and art. Meanwhile, renting NFTs opens the door to exploring the endless possibilities of NFTs, but are hesitant due to the financial constraints.
The allure of NFT renting lies in its flexibility, catering to the curious souls who want a taste before they buy and those who simply want to enjoy without the heavy financial burden. It’s a dance between art, technology, and financial innovation that will reshape how we interact with the digital world.
So, whether you’re exploring the mesmerizing offerings on platforms like reNFT, IQ Protocol, or Double Protocol, remember that NFT renting isn’t just about owning tokens—it’s about experiencing a vibrant digital culture where creativity knows no bounds.