Penguin Karts shared a newsletter on Medium announcing its partnership with IQ Protocol, the digital assets lending protocol. Now, users on Penguin Karts can rent out their NFTs securely without losing control. The partnership is set to play a big role in the upcoming NFT collection from the 3D game.
NFT usage is on the rise in the crypto ecosystem thanks to emerging concepts like Metaverse and GameFi. However, there is still no proper infrastructure to monetize the practical side of the non-fungible tokens. Moreover, most of the current NFT prices are based on their rarity rather than their utilities.
IQ Protocol, a money market for digital assets lending and on-chain subscriptions, seems to have found a way for users to put their NFTs to good use in blockchain games or metaverse projects. The protocol has introduced an expirable version of NFTs that allows owners to lend their unique NFTs for a specific time and price. The rental agreement expires after the period ends, and the owner will regain control of their digital assets.
This revolutionary step can currently change the way NFTs are used in the market. Gamers and metaverse users will no longer have to spend a lot of money to experience the unique items on games. More importantly, users can list their unused NFTs for lending and earn passive income while not losing ownership.
Penguin Karts became one of the early adopters of this expirable NFT through a partnership with IQ Protocol. This battle-racing P2E has always wanted to bring the best gaming infrastructure for crypto earnings. So it has introduced various functions that allow earning through gameplay, wagering, contribution, collection, and trading.
With the launch of the Scrappy Penguins NFT collection, users can also access the renting function. The Penguin Karts team hopes that this inclusion in their ecosystem would help strengthen the community through mutually beneficial rental features.
Users of Penguin Karts can now stake their NFTs using IQ Protocol and receive interest or income. On the other hand, renters of the items can get access to the utility side. So users no longer have to worry about keeping their assets idle. And what is more, the NFT locations are collateral-free and are secured through robust decentralized algorithms that can execute commands automatically.
This week, the Penguin Karts partnership is the second integration deal closed by IQ Protocol. Earlier the lending protocol joined the OneRare foodverse to offer NFT lending features on food NFTs and event passes. With many projects showing interest in NFT rental, IQ Protocol announced introducing cross-game rental in the future.