Lendroid + Chainlink: Working Wonders with Off-Chain Data
Note: This article was originally published in Lendroid’s blog site on Aug 24, 2020.
Lendroid will integrate Chainlink as a source for off-chain data, opening up NFTs powered by time, price feeds, weather data, and more.
Lendroid is happy to announce our plans to integrate Chainlink’s industry-leading decentralized oracle network. We plan to use Chainlink to obtain a wide variety of real-world data, which will impact a range of functions for Lendroid NFTs. These new ‘dynamic NFTs’ are able to be programmed in unique ways such as NFTs that can be lent out for specific time periods, NFTs that can alter their appearance and behavior based on real-time conditions, and entirely new DeFi products supported by NFTs.
Chainlink plays a critical role in the future of Lendroid’s dynamic NFTs, as oracles are essential to connecting off-chain data. Chainlink is not only the market leader on oracles throughout DeFi and other blockchain use cases, but it provides several key features necessary to our success. Some of these features include the ability to access any data resource, even those behind a paywall, as well as secure node operators and decentralized network infrastructure to ensure data is delivered on time and redundantly validated without any single point of failure.
Lendroid’s Upcoming Dynamic NFT Models Powered by Chainlink
Payout Triggers for NFT Rentals:
One of the most interesting new use cases with NFTs is leasing and rentals. Lendroid is applying the concept of decentralized lending to NFTs through a feature we call Rightsharing — trustless, transferable NFT leasing based on a mutually agreed upon time period. Rightsharing allows users to loan out their NFTs for any defined period of time while the smart contract automates rent payments from the borrower to the owner based on predetermined conditions.
For example, let’s say you have a very unique magical sword that’s been issued as an NFT in a blockchain game. The owner could then lease out that sword to another user using our rightsharing smart contract while a Chainlink oracle uses the Alarm Clock API to keep track of time and automate payments. Taking it one more step, if the rent payment was determined to be a fixed dollar amount, we could use Chainlink’s Price Feeds for exchange rates before making payments.
NFT Layer Triggers:
Another new concept Lendroid is developing is the ability to tokenize specific aspects of an NFT. These ‘layers’ could be influenced by a myriad of external data, all of which are determined by data from Chainlink oracles.
Consider an NFT that represents a human avatar and every bit of that human is tokenized in some capacity such as the eyes, hair color, personality, and more. These NFTs could change based on real world data, like being exposed to certain weather patterns or eating at certain restaurants or even mixing in IoT and augmented reality to create more dynamic influences. The possibilities are really limitless and unexplored, but will no doubt require off-chain data.
NFT layers can also have interesting DeFi implications such as tokenized crop insurance policies with multiple layers that determine its overall value like changing weather patterns, shifting crop yields, political chaos, and more.
Protocol Heartbeat:
Finally, Lendroid is in the process of converging its efforts in the DeFi and NFT spaces with a platform that we call a ‘financial heartbeat’. Details to follow soon, but Chainlink will play a fundamental role in its construction.
Lendroid Founder and Lead Architect Vignesh Sundaresan says “Chainlink’s capabilities are allowing Lendroid to greatly expand our ability to innovate in the NFT space, driving many of our new features like layering, NFT rentals, and the protocol heartbeat. By being able to combine the on-chain and off-chain worlds, we can take the power of NFTs and start to interface it with the real world, greatly enhancing our chance to reach mass adoption.”
As we look at intellectual property rights, location and signage rights, advertising space, or simply renting time for unique digital experiences, it becomes clear that NFTs can become more interactive than we’ve seen thus far. Non-fungible doesn’t mean immutable or stuck, and owners should be able to easily share their NFTs and the experiences they enable. Fuelled by reliable, accessible data provided by the Chainlink Network, Lendroid hopes to create a hybrid ecosystem that straddles financial protocols and the culturally rich world of NFTs.
About Chainlink
If you’re a developer and want to connect your smart contract to off-chain data and systems, visit the developer documentation and join the technical discussion on Discord. If you want to schedule a call to discuss the integration more in-depth, reach out here.
Chainlink is an open-source blockchain abstraction layer for building and running decentralized oracle networks that give smart contracts on any blockchain access to secure and reliable data inputs and outputs. It provides oracles to leading DeFi applications like Synthetix, Aave, and Kyber Network; numerous blockchains such as Ethereum, Polkadot, and Tezos; as well as large enterprises including Google, Oracle, and SWIFT.
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About Lendroid
Lendroid builds cutting edge financial services in the DeFi and NFT space. We champion clean risk and antifragile credit. In other words, fixed cost loans with zero ad-hoc liquidation. There’s a video you can watch here.
You can check out our documentation — with fully audited smart contracts — at this link. Explore Rightshare — our recent project on leasing in the NFT space.
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Note: This article was originally published in Lendroid’s blog site on Aug 24, 2020.
