A group of American blockchain developers are making a peer-to-peer lending platform game assets and other ERC-721 tokens. The developers use the smart contracts on the Ethereum blockchain to allow users to make their tokens available to lend and earn interest from it. Those who borrow the game assets or other tokens need to pay collateral until the lending period reaches its deadline.
The developers think this could be a perfect way to add new liquidity to digital collectibles and virtual land. For example, users could borrow in-game assets from each other for just a couple of days. Other examples would be an art gallery borrowing crypto art for a short time, or a developers using someone else’s virtual land for one year.
The developers named their application Lend721, but they aren’t done yet. They are currently testing two elements from on a test version of the Ethereum blockchain:
- Smart Contract – to take care of collateral, earnings and the ERC-721 tokens.
- dApp – a front-end interface that allows users to connect with the smart contract.
Lend721 will release in a couple of weeks. Even though users will test it on test net, it will likely still have bugs. Firstly the developers need to fix these over time. After that the developers want to get more support through different wallets. Potentially they might even allow an API for external interactions outside of their own app.
How to try LEND721?
Wait, what is ERC-721?
ERC-721 is a protocol standard on the Ethereum blockchain to identify certain assets. These assets are also called non-fungible tokens, NFTs or nifties. These assets can for example be owned and transacted by individuals or third parties, and they represent ownership over a physical or digital object. That’s because they are tied to a personal wallet.
Nike is working on adding NFTs to their shoes. This would add a layer of authenticity to their products. In addition users can ‘breed’ new shoes, and have them made into real ones. Another example, in games like Gods Unchained players own many cards, and each of them is an NFT. The possibilities are endless, and can be applied to housing or unique artwork as well.
Also published on Medium.