Cross-Chain GameFi Assets Lending(CCAL)
Guilds and players need a solution to maximize the utility of their idle in-game assets while also having the ability to borrow new game assets and earn more income. Kyoko's cross-chain asset lending platform allows lenders to list game assets across different blockchains on a single platform, while guilds and players can borrow their desired NFTs to enter new games at a fraction of the cost.
Similar to the Kyoko P2P lending platform, lenders can list their in-game assets, customize cash pledges, lending rates, and deadlines. Borrowers can use the Kyoko cross-chain asset lending platform to find and rent the in-game assets they desire. Once the lender and borrower reach an agreement, the Kyoko platform will automatically execute the transaction and carry out the exchange.
With Kyoko’s cross-chain asset lending platform, guilds and players can monetize their unused in-game assets, while newcomers can play games and earn income more easily than what’s currently possible.
For example: Alex has one Thetan Legendary Hero with a current value of 15 BNB. He does not plan to continue using the Thetan Legendary Hero to earn income in the next month. However, he does not want to sell it, and he estimates that the price of the asset that he holds will not exceed 20 BNB in the next month.
In this situation, Alex can list to rent out his Thetan Legendary Hero. He specifies the lending requirements, including a cash deposit requirement of 20 BNB, an interest rate of 12%, and a rental term of one month. Interest repayments will be charged when the borrower returns the hero.
Bob's guild wants to extend to Thetan Arena, but does not want to bear the risk of price fluctuations for Heroes. So, Bob can come to Kyoko and find Alex’s asset listing. He deposits an initial 20 BNB to borrow the Hero, and will be required to pay interest on the Hero's loan every week. The Hero will be returned in full after the one month lending period; otherwise, the 20 BNB will be liquidated and transferred to Alex.
In the above example, the determination of the Hero’s value of 20 BNB is completed by Alex, or the lender, and is determined by two parts. The first is the market price of the NFT, or in this case 15 BNB. Second is the margin of safety set by Alex, which accounts for the risk of future NFT price increases, or in this case 5 BNB.
This is similar to the rental car market. Drivers can list their idle car in the rental market, customize the deposit value, rental amount, and rental period. Borrowers can then pay an initial deposit to rent the car and drive for Uber to earn income.
With Kyoko’s cross-chain asset lending platform, guilds and established players can monetize in-game assets that are not in use, while players are able to play new games and earn income more easily and cheaply than they currently can.