Lend and Borrow Gaming NFTs with Unbound
Unbound is an NFT lending, collateral, and borrowing platform that acts as an intermediary between borrowers and Lenders. It connects gaming NFTs, offering what the platform describes as “a one-stop solution to lending and borrowing gaming NFTs.” The platform enables gaming NFTs owners to invest by deploying their NFT assets in NFT pools, gamers who want to borrow these gaming NFTs would be able to do so for a fee. The fee is based on the rules from the respective NFT pool, The generated fees are accumulated in those pools and passed on to the owners, with the Unbound platform retaining a cut for facilitating the rental.
The platform’s mission is to provide a solution that solves a problem regarding freely lending and borrowing gaming NFTs. Highlighting that gaming NFTs, “is meant to be used”, and that these NFTs “provide a huge potential for lending use cases”, which would include their utilities, the platform cited the web3 gaming space as “still early” when compared to the overall gaming market. Because of this, there is no place where gamers and Gaming NFT holders can lend and borrow NFTs securely.
The platform claims to solve this issue, by providing a solution for lending and borrowing gaming NFTs, that requires no implementation from the side of the game developers. The platform allows lending and borrowing from any game listed on the platform.
How It works
Unlike other lending protocols that only offer NFTs as collateral to borrow cryptocurrencies, Unbound offers “real rentals! where gamers can use the utility of NFTs in their respective gaming dapps.
A unique feature of Unbound protocol is that the protocol separates the utility and the ownership of the NFTs listed on its platform. In this context, put simply, a gamer could use the gaming NFTY he has borrowed from the NFT pool without having it transferred to his wallet address. This dissuades any potential for malicious activity such as transferring or selling them. This feature adds another layer of security to the Unbound Protocol.
The protocol is technically designed to provide a secure and scalable solution for enabling the utility delegation of a vast amount of gaming NFTs for gamers. They achieve this through a Cross-chain operability approach. The approach sidesteps the utilities of smart contracts, as while they offer an additional level of security, smart contract implementation from game developers.
Unbound Protocol imitates the concept of account abstraction, using Externally owned accounts. This gives the protocol the leverage to regulate the actions of accounts on the platform: what they can and cannot do. This enables Unbound to onboard every game on every blockchain.
What does this mean for Gamers
Using an account abstraction with EOAs means simply, that any gamer user account on the platform comes with an embedded EOA protocol. This EOA will give the gamer access to the NFT and its utility, which he can use to play games, but this EOa withholds access to the private keys of the wallets.
The account of a gamer is programmed to interact with the EOA wallet through the Unbound browser. By logging into the platform with their information, (e-mail or Google SSO). This design allows logging into gaming dapps and playing but not transferring any assets within the account.
How to Earn from UnbOund Protocol
Earning from Unbound protocol requires Gaming NFT holders to deploy their NFTs into the UNbound Protocol’s NFT pool. This is similar to the well-known staking of DeFi Liquidity Pools. In this case, the lender NFT assets are the liquidity being staked on the platform. The lenders, connected wallet serves as the account credentials.
This is a security measure, as it makes sure only the lender (connected with your individual wallet) can interact with the platform and their NFTs, The Lender by connecting his wallet becomes the only one who can lend and withdraw NFTs and claim your rewards. For providing this liquidity to the games, lenders are rewarded with rental fees pro-rated to their overall contribution to a pool.
Unbound Platform archives an instant reliable yield on their assets by using a peer-to-pool method. This method is adopted the moment the NFT owner’s assets are made available on the platform. This means that borrowing and lending transactions of gaming NFTs are always directed to or from a specific NFT pool.
Unbound has outlined some benefits that the peer-to-pool method offers. These advantages are listed below:
Firstly, it enables instant matching of NFT owners with gamers. This removes the hassle for owners to spend time setting up the correct terms to increase the likelihood of a rental. Once the NFTs are deployed, the platform does the rest.
The Method improves the chances and opportunities for scalability, by allowing owners with substantial assets and significant holdings to collect yield at scale rather than finding numerous peer-to-peer matches.
With the peer-to-pool method, owners can earn from their NFT staking with a hands-off approach. This works by accumulating the earned yields and rewards into a pool and distributing the, to the contributors pro rata to their contribution. By this, all contributors in one pool earn the same revenue per deployed NFT, irrespective of the actual usage of the NFT.
Unbound’s Token, $una, is still in the vesting phase and has not been released for public transactions. However, it is estimated there will be about 1.000.000.000 $UNA tokens, provisionally allocated to different areas. A breakdown of the allotments and their areas can be seen in the figure below: It should be noted that these provisions are subject to change in the future.
According to Unbound, the circulating supply of $UNA is designed to be an incentive to promote long-term growth and sustainability. To know more about the circulation schedule, kindly look into the image below:
- Missouri Legislative committee passes a bill protecting Node Running & Crypto Mining
- L2, Scroll raises $50M to scale Ethereum
Pingback: Lend and Borrow Gaming NFTs with Unbound by Chigozie Ohakwe Michael – CryptoTvplus Events: NFT, DeFi, Bitcoin, Ethereum, Altcoin Events