Lighthouse

Lighthouse is an opensource rental marketplace and liquidity protocol. Users can earn passive income from their assets, rent in-game NFTs, and access loans from liquidity providers.

This project presents an open-source rental marketplace that lets people rent out their NFTs. This is targeted at gamers who want to rent in-game items for a period of time.

In addition to being a rental marketplace, it also integrates a lending protocol. Individuals can provide liquidity, and NFT owners can borrow from this liquidity depending on their creditworthiness. The creditworthiness of an individual is calculated by how much money they regularly make from their rentals.

Unlike the traditional lending system whereby people borrow for a period of time, Lighthouse proposes a short-term investment scheme.

The model

Alice owns an NFT that's in high demand. By renting out this NFT, she makes an averafe of 1000USDC per day. However, she needs 10000USDC urgently, but it'll take her a 10 days to get the money from her sales.

So, she takes out a loan from Bob, a liquidity provider. In exchange, the liquidity provider will receive the earnings from Alice's rental service for the next 10 days.

If Alice agrees to pay the loan over the next 20 days, she will only be required to give Bob 50% of her earnings for the next 20 days.

The amount of loan Alice is eligible to take out is determined by the average amount of money she makes from her rentals per day.

By providing this kind of liquidity, Bob can make a significant profit and at the same time, be exposed to a large amount of risk.

If there's a significant market uptick, Bob could double the investment. However, if the sales do not pick up, he may lose some part of his investment.

This project uses Solidity smart contract to manage the loan system. The frontend was created using React. I also integrated Walletconeect into the frontend. In order to create the NFT rental marketplace, I had to deploy a test NFT smart contract with the metadata stored on IPFS.