The First Truly Decentralized Rental
In the previous articles, we have briefly covered Prom’s rental and explained what keeps it safe. However, to make the most of this option, be sure to learn more about its value and take a deeper dive into its mechanics.
Despite the current challenges the blockchain industry is facing this year, researchers claim that P2E is still viral and profitable. Thus, on the one hand, a lot of potential players don’t enter the market because they are not ready to risk their money. Meanwhile, the ones who do it have to settle for financially unfavorable terms with lenders or get scammed by third parties or unfair owners.
On the other hand, most asset holders who don’t want to play on their own, gain no revenues from holding their NFTs or even lose them being misguided by potential borrowers. To solve all these problems in a win-win way, Prom created an all-in-one platform that is completely decentralized, secure, and easy to use.
Back to the Basics
You can skip this part if you are sure that you’ve learned everything about Safe Vaults, but, if you haven’t read our text about Prom’s security mechanics or missed something, you need to look through this section.
Safe Vault is a GnosisSafe-based smart-contract wallet that differs from the conventional one by having limited functions. All financial operations made by its owners need to meet predetermined conditions, otherwise, they can’t be verified. This approach enabled Prom to make renting completely secure and prevent potential thefts of assets. For instance, a borrower can’t transfer an NFT to other wallets or use it over the set duration.
To lend NFTs risk-free, an owner should create an account by connecting it to any wallet, such as Metamask. Next, they should choose one of the existing offers or publish one with the set duration and rate: asset lenders are welcome to choose fixed prices or the split revenue model that we will describe in one of the upcoming articles.
Then, an owner should pre-approve NFT transfers (the same way as OpenSea) to automate all further operations. When a borrower rents an asset, it will be transferred to their Safe Vault, thus, it can’t be stolen. Finally, when the gaming period is over, an NFT and the revenue share are automatically transferred back to a lender.
To borrow an asset, one doesn’t need to put down a deposit: Prom works in a completely collateral-free way secured by our smart contracts. All a borrower needs is to create a Safe Vault. Next, they can request the needed asset or explore the existing ones and save their time by setting genre, game, duration, and price.
Once an NFT is chosen, a player needs to confirm borrowing to automate further processes. The asset will be moved to their Safe Vault with limited functionality: one can use it to play and earn, but still won’t be able to transfer it to other wallets thanks to the smart contracts. Thus, NFTs can’t be stolen or burnt. Meanwhile, the same contracts secure players: assets owners or Prom have no keys to enter borrowers’ Vaults. Thus, only borrowers can access their private wallets.
After renting, a borrower can connect their Safe Vault to the game via WalletConnect and start earning. So far WalletConnect is the only protocol that can support smart contract-based wallets. When a rental period is over, an asset will be automatically transferred back to a lender, and the profit will be divided among a player, an owner, and Prom. You can learn more about the revenue share in one of the next articles.
Noteworthy, if a game requires several assets and a borrower already owns some of them, they can deposit them to a Safe Vault. Those assets will be secured as the borrower is the only private key owner. Moreover they won’t be limited in transfers, as Prom detects original ownership.
Guilds can also benefit from Prom because currently they are limited in options. Guilds either have to take the risk of NFT thefts or have to play games with an internal scholarship system that limits their potential earnings.
Another problem is that to hedge their risks guilds have to attract significant capital and deploy it across different games.
Prom serves as a unified scholarship system across GameFi that allows guilds to explore more games, increase their revenue, and reduce their risks, as they don’t have to acquire assets.
Safe Vaults have a great advantage: they don’t require any integration from games.
Games build their own rental solutions to attract players. However, it might be a tough challenge. They need to spend additional development resources, time, and money. Besides, to prevent potential fraud, they also have to conduct serious security checks.
To avoid such problems and get a reliable rental solution in a few minutes, games are welcome to partner with Prom. All they need is to support WalletConnect and, depending on their user verification methods, may also have to support Euthereum’s EIP-1271, which is commonly used to verify if a provided signature is valid when an account in question is a smart contract.
Marketing wise Prom is also beneficial: being a Steam-like aggregator with its own audience where everyone can find projects by genre, novelty, and other criteria, it enables games to reach out to players of their competitors and bootstrap internal economy.
Prom is not involved in any users’ operations and, unlike other rental services, doesn’t keep user data or wallets on centralized servers or contracts. Borrowers know that lenders can’t access their Safe Vaults, and lenders are secured from thefts. Besides, Prom doesn’t require any integration with games, which makes it the most accessible rental solution ever.
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