Non-fungible tokens (NFTs) grabbed the spotlight in 2020 and became the rage of the bull market in 2021. Prices for many collections made the headlines during the year, and trade volumes soared in Q4 2021. Interestingly, CryptoPunks, Bored Ape Yacht Club, and Axie Infinity enjoyed some of the best sales during that time. The trio had combined sales of around $5 billion.

However, like the rest of the market, the NFT world isn’t hitting those numbers anymore. But the launch of projects like IQ Protocol has reintroduced new opportunities for the sector, providing new use cases for digital assets. For the first time, NFT users can make money from renting out their assets without fear of any associated risks.

What is the IQ Protocol?

IQ Protocol offers a decentralized peer to peer rental marketplace digital assets. This project is simply the next money mechanism that allows users to rent wrapped, expirable versions of digital assets without collateral. In addition, it also allows holders to profit by offering liquidity without taking any risks.

IQ Labs launched IQ Protocol as part of its vision to provide an NFT rental marketplace that would increase their utility and develop a completely new economic model for holders and projects. The goal is to free them from asset risks and high collateral limitations.

The IQ Protocol provides the infrastructure for users to lend their NFTs to other users. The leasing agreement and fees are structured to benefit both parties. So, there’s an agreed-upon time frame and fee.

Peer to Peer NFT Renting

NFT renting is pretty different from traditional staking. The latter relies on inflationary mechanisms to provide interest. However, renting out NFTs derives its value from the utility of the NFT. This provides a stable economic model.

Prior to now, NFT renting had some associated risks. The renter is expected to return the asset at the end of the rental period in exchange for the collateral provided. However, IQ eliminates such risks with its approach.

The IQ protocol does not give the original asset to the borrower. Instead, it mints an expirable version of that asset. The minted version contains the metadata of the original asset and its features. So the borrower works with the wrapped version of the original.

So, with the IQ Protocol, you can rent out assets you are not using and do not want to sell. This way, you make extra income from rental fees and can rest assured that your original asset is safe.

IQ Protocol isn’t a newbie in the market. It has offered token-staking pools for initiatives including Parsiq and Mysterium Network since 2021. The project plans to announce more launches in the coming months.

What services does IQ offer?

IQ Protocol offers a decentralized money market for the following

  • NFT Renting: This framework supports renting non-fungible tokens, including financial NFTs, art, in-game assets, collectibles, etc., for a specified time. Users can use these rented NFTs for a wide range of applications, including gaming, social media, etc.
Benefits of Using the IQ Protocol

The benefits of a new offering like this are many. And this is the first time p2p renting of NFTs is available to the public.

Who are the backers?

Projects with trustworthy backers and funding often tend to do better in our market. And IQ Protocol has an impressive list of backers. The project announced that it raised $12 million from more than 30 blue-chip venture capital (VC) firms and private investors.

Some of the project partners include

  1. Capital
  2. Republic Capital
  3. Cryptology Asset Group
  4. Kronos
  5. Genblock Capital
IQ Protocol
What is the project up to?

The IQ Protocol has made some remarkable achievements over the last few months. The project has achieved the following, according to its roadmap:

  • IQ Protocol staking for fungible tokens on BSC
  • IQ Protocol staking for fungible tokens on Polygon
  • PRQ Incentive Claim on IQ
  • VC Round (Closed)
  • Contract audits

Big Launch Next Week: The IQ Market

Next week on the 15th, the IQ Market will launch with their partner The Red Village. The Red Village is a Polygon-based game from gaming leaders Animoca Brands. In this launch, we will see peer-to-peer NFT rentals in action.

The launch will support both Polygon and BNB Smart Chain. The Red Village is supporting the launch with a tournament using only rented NFTs. In fact, there’s a $10,000 prize pool just for playing with NFTs you don’t even own. That’s a great deal.

The coolest part of all is how thanks to the split rewards and gasless fees for rentals, a brand new player can rent, play, and earn starting with a completely empty wallet. No tokens for gas or anything.

Other great features like:

  • SDK (software development kit) to make it easy to integrate IQ Market into other apps
  • Customizable rental agreements
  • and Guild HQ to help guilds and institutions manage their NFT rentals are other things that IQ Market offers too. We have a big in-depth article on ALL the great things the IQ Market can do coming up next week.
What’s next?
IQ plans to achieve the following in the coming months:
  • NFT Rental Marketplace
  • Token Launch
  • $IQT airdrop
  • IQ NFT Integrations
  • IQ Protocol on more chains coming soon
  • IQ Guide HQ- a dashboard and management system for institutions
  • Interoperable Cross-chain Renting
The IQ Protocol seems pretty ready to change the NFT space. If you are looking for a way to put your NFTs and fungible assets to use, visit IQ on its website or social media platforms.

⬆️ For more cryptocurrency news, check out the Altcoin Buzz YouTube channel.

⬆️ Our popular Altcoin Buzz Access group generates tons of alpha for our subscribers. And for a limited time, it’s Free. Click the link and join the conversation today.

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. This article has been sponsored by IQ Protocol. Copyright Altcoin Buzz Pte Ltd.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.