Oort Digital recently became a member of Ocean Shipyard, an incubation program that was launched by Ocean Protocol Foundation to help unleash data for AI and for everyone. To be able to achieve its goal of building DeFi and GameFi on top of NFTs, Oort Digital will need to overcome the difficulty of accurately value Non-Fungible tokens.
We believe by building an NFT pricing oracle on top of Ocean Protocol, and inviting the support of large NFTs whales and conglomerates, a new age for the NFT Metaverse can become a reality.
— Oort Digital
There are many use cases for this project, but let’s focus on something I find very interesting; the possibility of leasing NFTs and pay by the second.
Let’s say you’re playing a game that requires a specific NFT to complete a mission. You can easily lease the item by locking a collateral amount in a smart contract (In case you default on the loan). The collateral amount is set by the owner of the NFT, and the pricing Oracle of Oort Digital can confirm to the borrower that the value is fair. With the pay-by-the-second system, you can easily return the item once you manage to complete your mission, even if the lease hasn’t expired, ensuring that you aren’t over-paying.
For the owner of the NFT, it can be a way to capitalize on the value of it, while keeping ownership. They are also protected from a default on the lease by the collateral in the smart contract. (Which, in my opinion, should be at least as high as the minimum value the owner would be willing to sell)
Let’s take another example; Special NFTs by music artists.
We recently saw bands like Kings of Leon releasing an NFT album that came with a physical limited edition vinyl. I really like the idea of these bonuses that rewards fans that hold NFTs. Imagine that an artist decide to sell limited edition NFTs that provide holders with benefits during concerts. It could be a special a discount on tickets, a VIP section in the venue, a special t-shirt or other memorabilia. If you’re the owner of that NFT, you could decide to lease it for concerts that are too far away for you to attend. If the artist is touring, it could really be profitable to lease for each of the concerts. On the flip side, as a fan of the band, you could easily lease the NFT for one night, have your wallet scanned at the entry of the venue, and close the lease once you have claimed your bonus.
In conclusion, it will be very interesting to see what Oort Digital will be able to accomplish by combining NFTs with DeFi and GameFi. The economy around NFTs has no limit, and we are just at the beginning of the exploratory phase.