Tokyo-based crypto startup Yiedl announced that it will launch a non-custodial P2P mortgage and rental market for non-fungible tokens, or NFTs.
Yiedl founder and chief executive Kohshi Shiba asserted that the platform will support a myriad of tokens as most real-world assets are tokenized:
“For assets that have persistent external utility, I believe NFT is an appropriate token form.”
Shiba stated, listing subscription rights, DAO, memberships, and intellectual property rights, and in-game items as examples of assets that will see increasing tokenization.
I announced Yiedl project! Let’s. #buidl and #yiedl together.#Ethereum #nft https://t.co/1FOkiq155L — Kohshi Shiba (@KOHSHIBA) May 23, 2020
Yiedl will comprise a P2P marketplace where 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 will automatically be returned to its owner, with the entire process taking place without intermediaries.
Shiba further adds:
“I believe Yiedl opens up a new horizon for the NFT ecosystem, and there will be massive new NFT owners in the future. Owning NFT will also become an investment since Yiedl enabled NFT owners to earn passive income with their assets.”
To facilitate the platform, Yiedl created a modified version of the ERC-721 standard available as open-source for other developers to adopt, dubbed as ERC-X.
Shiba stated that the new token standard “added two user classes to the existing ERC-721 standard” in the form of “user and lien”:
“The idea behind it is that by supporting three user classes as default, application developers can assume that tokens can be rent[ed] out or collateralized..With ERC-721, it was impossible, and it caused difficulties when NFT owners rent/collateralize NFTs as the ownership is taken over by the contract address or tenant.”