Chainlink revolutionizes the market with innovative NFT rental and loan service

Chainlink announced a new method in the DeFi ecosystem that involves operations with NFTs in the field of gaming (GameFi), a market that moves millions of dollars.

In recent months we have seen that non-fungible tokens are expanding their use cases in a myriad of options, whether to tokenize real-life assets, to collect artwork, to access exclusive events or content, among many more.

But another application that has been given to them is that of being a new instrument for the DeFi ecosystem (decentralized finance), through a novel system announced by the Chainlink team.

Chainlink is constantly and steadily working on non-fungible tokens, as we have observed in a series of events over the last few months.

First, they have demonstrated it through the Dynamic NFTs (dNFTs)which allow the metadata of the smart contract to change according to various external conditions automatically, and without losing its unique identifiers (ID).

On the other hand, in mid-March of this year, they announced the release of Chainlink Functionsa platform that allows developers to link their dApps or smart contracts to any Web 2.0 API.

In this opportunity, Chainlink has announced its new tool for the DeFi ecosystem, which consists in the loan and rental of NFTs. In a statement on their official blogthey have made an explanation of how NFTs can be integrated into smart contracts, enabling access to a number of functions as in the DeFi field, which were previously unavailable to collector users.

In this way, the loan and rental of NFTs becomes a new way for users and players to earn money with their collectibles, and in turn provides new ways for game creators to earn money.

One of the reasons for renting an NFT is the fact that many digital collectibles of these characteristics provide their holders with a series of exclusive accesses and benefits, which are not accessible to a user who does not have such NFT in his possession.

Regarding the gaming field, they will make it possible for other players to acquire a small property of the NFTs in exchange for a previously established sum of money. Thus, players will provide game assets such as characters, items, land or other exclusive elements for a certain period of time.

This provides a tool that is favorable to both parties. On the one hand, the owner of the NFT will be able to earn more money from the fees charged to borrowers, and borrowers will be able to use the NFTs and enjoy their benefits without having to buy them.

This system of NFT loans and leases can be presented in two ways: as secured and unsecured NFT loans:

* Secured (or collateralized) NFT loan: in this case, borrowers must offer collateral (either cryptocurrencies or other NFTs) to secure their loan.

* Unsecured NFT Loan: here borrowers are not required to provide collateral. Unlike the previous one, they rely on trust and reputation systems to perform an analysis as to whether the borrower will repay the NFT being lent. In addition, this type of loan has a higher interest rate.

In this way, NFT loans and rentals are helping game developers to push GameFi adoption to new limits by providing greater access to unique experiences and expanding the reach of Web3 games.

In addition, by allowing more users to access blue chip, rare or expensive NFTs without having to purchase them, NFT loan markets allow more players to access various features and experiences of such games.

Written by Luciano Garriga (Tw: luchogarriga) for NFT Express.

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