Interview: Get Ready for Token Leasing with Chintai
Chintai, a decentralized high-performance token leasing platform, recently published a Medium post. In it they shared some details about the platform and discussed benefits of the leasing economy. Chintai’s leasing platform will allow EOSIO tokens to be part of this economy providing its users the ability to borrow and lend tokens.
- Creation of passive income cash flow: crypto HODLers miss out on the benefits of generating passive income with little to no risk to their crypto asset holdings
- Risk mitigation: leasing tokens can help investors ride out price volatility waves
- Lowering ecosystem growth costs: just like owning a house is more expensive than renting over short term, leasing tokens for temporary needs is cheaper than outright buying them
- Blockchain scaling: leasing economy creates a market for low-cost access to resources, which in term facilitates scaling.
We asked Ryan Bethem, Product Manager at Chintai, a few questions pertaining to the release:
How many leasable tokens are you planning to have at the beginning?
At least three. This number will rise in the next month. Right now, EOS, BOID, DAPP, and LUME to follow.
What are typical interest rates that you think you will see? Lately EOS leasing rates have been very low on Chintai, which is obviously indicative of the market conditions. Are you expecting higher rates on other tokens?
EOS rates are extremely low due to network upgrades, dApps taking parts of their contract off chain, and network fees subsidizing CPU availability through REX. All of these factors are highly specific to EOS tokenomics. I am not expecting rates that we saw during the first few months of launching Chintai, and we will have to observe each token economy to understand how the leasing markets work respectively.
We can say that increased demand for any utility token is a forward indicator for a robust leasing market. What’s more interesting to me about this phase of the project is the completion of the matching engine and flexibility of the Chintai tech stack. First, we can accommodate leasing of any token. And our engine can be used in the background by any application or product to connect EOSIO blockchains with existing industry. Our focus from here is connecting Chintai with existing industry, existing behaviors, and enhancing those products respectively… this is where I’m extremely bullish on collectibles (NFT, SFT).
It is pretty clear why someone may want to borrow EOS (dApp devs need EOS to stake for resources). Why would anyone want to borrow other tokens other than for speculative reasons?
Good question. Each token economy has specific reasons for leasing. Many of which we are just beginning to evaluate in detail. First, token leasing is not for every token economy. Second, token leasing for fungible tokens will inherently have different elements to consider when compared to NFTs.
It’s very easy to see why people would want to lease or trade NFTs and SFTs. People love collectibles. Personal meaning and attachment gets infused into collectibles – essentially becoming an extension of someone’s person. So take gaming as an example. Hours, upon hours are spent collecting items, acquiring achievements, and so on. Now tell everyone who is a gamer that you can play the same game, earn items that are provably unique, and can then sell and trade them for profit?! No-brainer. I can see a world where movie production companies create the equivalent of “digital beanie babies” for their movies, which can then be traded and played with on any of the common devices we use today such as a smart phone. The potential is vast and huge.
And again, a big part of our focus is connecting existing industry with the potential of NFTs and SFTs. Our recent partnership with Decentranet, a cryptocurrency advisory group, has the resources to help bridge the gap from a startup with great idea, to implementation and meaningful use cases in existing industry. Whereas fungible token leasing markets as we’ve seen with EOS will depend on demand in emerging token economies, we can plug in our technology to existing products that already have a large user base and perhaps ignite a massive wave of user adoption for blockchain based technology.
But when we’re talking about fungible tokens, how about we take BOID as an example. You need the BOID token to monetize your idle computer power. This makes for a good combination between those who have lots of idle computer power but no BOID, and those who have a lot of BOID idle computer power. BOID holders will be able to make passive income, and people who have loads of extra computer power can get BOID at a very low price.So again, each market will uniquely benefit from leasing. But the sky is the limit, especially when utility tokens become more integrated into existing and emerging industry.
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