How does Venn work
It's really simple!
Last updated
It's really simple!
Last updated
First, NFT owners can utilize our dapp to list their NFTs for rent. In turn, Venn Smart Account users can rent these for a specified duration. Asset owners can be confident in receiving payment and having their assets returned post-lease, all thanks to our robust smart contracts.
How is this achieved? Our Smart Account ensures the rented NFT remains within it until the rental period concludes. When the rent is due, the NFT is directed solely to its rightful owner. Our application is tailor-made to work with ERC-721. NO NEED FOR NEW PATTERNS!!
Venn will soon be compatible with ERC-1155.
The protocol is made up by 2 main components: the Venn Smart Account and the Venn Market Place. Although we provide our own market place specifically developed to support our protocol, any market place platform can adapt their own dapp to integrate our smart accounts following a few easy steps. Check here for details.
Below, we go into a little more detail on how each of these components contributes to make up a fully functioning rental platform.
In order to be eligible to rent NFTs, users first have to create a Venn Smart Account (VSA). Anyone can easily create a new account using our Wallet/Dashboard. The Venn Smart Wallet/Dashboard is still in development. If you'd like to try out the Demo, checkout the Guides to see how.
After a user has created his own VSA, he can visit a compatible market place and rent listed NFTs like any ordinary blockchain transaction. Once rented, the NFT will be temporarily held by the VSA until the rent is due. The VSA makes sure the NFT will remain within it until the rental period ends and be directed to the previous holder after the fact. That means that a rental CAN'T be transferred from the VSA, unless it is going back to its previous holder.
Aside from this, VSA works like any other account. Users can connect to external dapps-like DeFi, GameFi, Metaverse platforms, etc.-make and sign transactions, and so on. Given the way VSA is built, other custom functionalities can be added over time and our users can upgrade their VSA without needing to create a new one. So be on the lookout for upgrades!
The second main piece of the renting process is the Venn Market Place. As hinted above, any market place can make itself compatible with our Smart Accounts, but off course we provide our own market place crafted specifically to this application and fully integrated with our VSA Dashboard.
Venn Market Place is still in development. If you'd like to see the Demo, Guides section goes into how to test it.
This component is supposed to work, not only as a listing platform, but also as an intermediary between the two parties. In the Venn Market Place, when NFT owners list their assets, custody will be temporarily transferred to the Market Place Smart Contract and will remain there while listed. In turn, the protocol mints a receipt-NFT that should function as a claim to the listed NFT. This format ensures two things: (i) a listed NFT will actually be available once a user tries to rent it; (ii) an NFT owner can sell his claim to the listed NFT (or stake it, or use it as colateral, etc.) even if it's currently rented out.
NFT owners should be wary of staking receipts as they may loose ownership of the original NFT in some cases. More specifically, they should NEVER stake receipts of NFTs that are currently being rented, IF the LISTING STATUS of the NFT is OFF, meaning they are currently delisted.
The receipt-NFT tracks the original NFT's metadata so it looks just like the original, except that it's issued from a different contract. Once an NFT is delisted, its custody will be transferred to the current holder of the receipt-NFT. The receipt itself is burned.
Although the receipt can be sold or used as colateral, as it holds a claim to the authentic version, it may not hold some special functionalities held by the original. We propose a solution to this: NFT issuers can allow receipts to hold functionality by checking its provenance (here), and checking if the authentic NFT is being rented or not. As long as the NFT is not rented, only the receipt can be used in place of the original. When the NFT is indeed rented, the receipt should be blocked from functionality to guarantee only one of them can be used. (We will go into more detail on how to do this the future, so checkout our tutorials soon)
