NFTs have trouble competing with DeFi’s passive yield. The lack of fungibility makes it more difficult to assign proper value.
The NFT is brought into existance by the creator, then sold to an art collector. This is the standard process, but ApeLend adds another layer here with the ApeToken. If the art collector proceeds to list it on our marketplace, they are minting new ApeTokens, which is a new token standard based on the ERC-721 standard, which is back by the lent NFT.
Enthusiasts/Apes can borrow a NFT-backed ApeToken for bragging rights or other perks associated with the NFT without having to use as much money to do it.
This may be difficult to achieve if it requires trust in the borrower's willingness and ability to return it, which is why we created the ApeToken standard. With this standard, the tokens have added funcitonality on top of the base ERC-721 to confirm there are no outstanding ApeTokens that are not backed a provided NFT.
NFT Owner sends their NFT into our escrow contract, which then mints new ApeTokens, the amount of which the owner specifies. The owner also sets the loan term that is allowed for any borrower. Then once the loan expires, if not returned by the lender, any transaction involving the ApeToken will instead return and burn it. (If no transaction is made, in the process of pulling the NFT from ApeLend, the outstanding ApeTokens will be burned.)
- Create user interface.
- Display ownership and borrowing data in a hall of fame style.
- Reserving future lease slots ahead of time.
- Transition to governance system for repossession.