Proposal: NFT Rentals Integration (reNFT Protocol)

Overview
This is a proposal to integrate NFT rental functionality into the Rarible protocol. reNFT is a NFT rental protocol which has won a number of hackathons over the last several months, including:

  • “The Graph Protocol prize bounty” as well as “Runner-Up” at the Chainlink Hackathon 2020
  • 1st Place winner of Superfluid bounty!
  • 1st Place in the Avalanche MoneyDance hackathon sponsored by Polyient Games! Check out the article they released mentioning reNFT: https://medium.com/avalabs/wrapping-up-moneydance-2020-9480de1e8643
  • 1st Place overall in the “Untitled NFT Hackathon”

How reNFT works
As an NFT “Lender” (Lending an NFT)

  • On reNFT’s platform a user can lend one or multiple NFTs. By doing so this saves multiple rental transaction costs and merges them into one single cost
  • Lending implies transferring the NFT to our “escrow” smart contract to list it for rent
  • The NFT “Lender” specifies the following:
  • The Rental Price (how much you wish to be compensated daily; this is the daily borrow price)
    • The NFT Price (this is the collateral a borrower most put up to rent)
    • Max Rental Period (maximum number of days you wish to lend out your NFT)

As an NFT “Borrower” (Renting an NFT)

  • The “Borrower” must specify the duration (in days) that they would like to borrow the NFT for
  • This duration then gets multiplied by the lender’s set rental price, the NFT price (collateral) gets added in, to arrive at the total rent price
  • This total rent price gets deducted from the borrower’s balance and sent to the reNFT contract which acts as an escrow
  • The NFT is then sent to the “Borrower” after successful transaction
  • The NFT price (collateral) is stored in reNFT’s contract and is returned to the NFT “Borrower” only upon successful return of the NFT to the “Lender” (NFT “Lender”)
  • In the case that the NFT is not returned on time (rental duration has passed), the collateral can be claimed by the lender from the reNFT contract

Our proposal
To integrate the reNFT protocol into the Rarible protocol, with the following goals:

  • npm package for ERC-721 and ERC-7155 NFT rentals on mainnet (for non-technical folks: this will allow any app building on Rarible to easily integrate rentals into their app)
  • Integration with Rarible front-end via PR
  • ETA: ~1 month

Funding amount
4,000 $RARI delivered upfront

The reNFT protocol is planning on releasing our $RENT token shortly. In exchange for this financial support of our project, Rarible DAO will be one of the recipients of our tokens, which should further align incentives and allow Rarible DAO to benefit in our success as well.

We would love some feedback from the Rarible community on this funding point!

Accountability
We will attend weekly Rarible governance calls and give updates as we move forward with delivering this. We will also work with the Rarible team as needed for the integration.

Why fund this?
reNFT enables holders of NFT assets to put them to work by renting them out for a set price, duration, and collateral amount. Further, reNFT opens the avenue for users to temporarily use an NFT they otherwise do not want to purchase or that is not for sale, for a set time period.

NFT rentals will become huge, and Rarible could be the first NFT marketplace that allows this functionality natively.

6 Likes

awesome project! Rarible could really increase their reach in the NFT space with that wonderful integration.

3 Likes