Tokyo-based crypto startup Yiedl has announced that it will launch a non-custodial peer-to-peer, or P2P, mortgage and rental market for non-fungible tokens, or NFTs.
Speaking to Cointelegraph, Yiedl founder and chief executive Kohshi Shiba asserted that the platform will support a myriad of tokens since many real-world assets are tokenized .
“For assets that have persistent external utility, I believe NFT is definitely an appropriate token form, ” Shiba stated, listing subscription rights, decentralized autonomous organization, or DAO , memberships, and intellectual property rights, and in-game items as examples of assets that will see increasing tokenization.
Yiedl to facilitate NFT-collateralized mortgages
Yiedl will comprise a P2P marketplace in which users propose their preferred lending or rental terms.
When another user fills the order, Shiba stated that “the agreement is set on Yiedl protocol and [the] transaction occurs, ” — with access to the leased NFT being provided following the receipt of initial rent.
If a loan repayment is not met on time, the NFT is automatically returned to its owner, with the entire process taking place without intermediaries.
“I believe Yiedl opens up a new horizon for the NFT ecosystem, and there will be massive new NFT owners in the future, ” said Shiba. “Owning NFT will also become an investment since Yiedl enabled NFT owners to earn passive income with their assets. ”
Yiedl develops modified ERC-721 token standard
To facilitate the platform, Yiedl created a modified version of the ERC-721 standard that has been made available as open-source for other developers to adopt, dubbed ERC-X .
Shiba specified that the new toke standard “added two user classes to the prevailing ERC-721 standard” in the form of “user & lien. ”
“The idea behind it is that by holding up three user classes as predetermined, application developers can assume that as well can be rent[ed] just or collateralized, ” said Shiba. “With ERC-721, it was impossible, and so it caused difficulties when NFT title-holders rent/collateralize NFTs as the ownership is really taken over by the contract address aka tenant. ”
NFT sector gains traction
Many companies are betting the NFTs will emerge as a leading use-case for crypto assets, while using blockchain gaming and asset tokenization promising to expose distributed ledger modern advances, or DLT, to wider viewers.
However , it is continues to early days for the NFT sector in relation to infrastructure, with a surprise auction with the limited run of CryptoKitties leading to the Winklevoss-backed top NFT marketplace Nifty experiencing downtime last week.