Online trading

NFT rentals may be the future of online trading

We are witnessing the birth of a digital age. Central Bank Digital Currencies (CBDCs) are being developed and tested for mass adoption by global institutions.

Stablecoins, especially Tether (USDT) trading volumes, are increasing as of this writing. Although this can be attributed to the war between Russia and Ukraine, the use of stablecoins can only increase over time.

source: messari

In this article, I would like to discuss the concept of integrating smart contracts into traditional trading platforms which may be seen in the near future.

The concept is particularly intended for the retail trade, but certain parts can be used at the institutional level. The demand for cryptocurrencies and non-fungible tokens (NFTs) is expected to increase in 2022. The concept focuses on integrating NFTs into trading software in exchange for trading benefits.

Besides NFT art, non-fungible tokens have many possible forms of use. NFTs can replace the traditional ticketing system, the way we vote, coupons and more.

Forex brokers and crypto exchanges offer traders lower transaction fees based on monthly trading volumes. This applies to spot transactions and futures contracts, including perpetual futures contracts.

What if we could improve the commission structure, increase customer satisfaction and revenue through NFTs?

Integration of smart contracts

The standard form of NFT marketplaces is the buying and selling of non-fungible tokens. OpenSea, Nifty Gateway, and SuperRare all follow the basic buy and sell form.

However, NFT owners can also lend their NFTs, the “NFT rental”. Non-fungible tokens can be borrowed for a predetermined period of time before being returned to the owner.

It is more prevalent in companies specializing in real estate NFTs in the metaverse, lending their virtual properties to other users. My concept evolves around integrating NFT lending protocols into crypto and forex trading.

Before expanding on the benefits of these protocols, I would like to clarify how NFTs are borrowed via smart contracts. I focus on NFT lending without collateral.

Rental terms are embedded in a smart contract such as rental term. If the renter agrees to the rental term and rental price, a packaged version of the NFT is minted and sent to the borrower. The original NFT remains in the custody of the lender.

The wrapped NFT has an expiration date, which was determined prior to the rental of the NFT. Once the wrapped NFT expires, the wrapped NFT is returned to the contract, thereby burning the wrapped NFT.

These protocols already exist and are under development, known as the “IQ protocol”.

IQ Protocol

IQ protocol yellow sheet

NFT Rental

Crypto exchanges and forex brokers can benefit from these protocols. I will take the trade terms as an example. The broker can offer its clients better spreads through dedicated NFTs. For example, it can range from as little as 15 minutes to 24 hours.

If the trader agrees to pay the fees to receive lower spreads, a wrapped NFT is issued and assigned to the trader’s dedicated account on the trading platform. When depositing the wrapped NFT, the trading platform recognizes the low-spread wrapped NFT and automatically reduces spreads as long as the wrapped NFT is present.

Once the shrouded NFT expires, it is returned to contact (which causes it to burn). Upon removal of wrapped NFT from the trading platform, the privilege of lower spreads automatically ends.

Tokens for NFT rental can be pegged to the US dollar (stablecoin) to avoid exposure to market volatility. The IQ protocol blockchain can be used to support the fully automated rental process.

Although the commissions of the broker or the exchange may be temporarily reduced, they can be compensated by a large number of traders interested in lower spreads for a certain period of time.

In addition to trading conditions, the financial company can award its traders other incentives. Faster withdrawals and subscriptions to various services offered by the broker can be offered through smart contracts.

This is a future concept for integrating smart contracts into trading platforms as we know them today. A dedicated platform must be developed to enable such functionality.

Welcome to the digital age.

We are witnessing the birth of a digital age. Central Bank Digital Currencies (CBDCs) are being developed and tested for mass adoption by global institutions.

Stablecoins, especially Tether (USDT) trading volumes, are increasing as of this writing. Although this can be attributed to the war between Russia and Ukraine, the use of stablecoins can only increase over time.

USD transactions

source: messari

In this article, I would like to discuss the concept of integrating smart contracts into traditional trading platforms which may be seen in the near future.

The concept is particularly intended for the retail trade, but certain parts can be used at the institutional level. The demand for cryptocurrencies and non-fungible tokens (NFTs) is expected to increase in 2022. The concept focuses on integrating NFTs into trading software in exchange for trading benefits.

Besides NFT art, non-fungible tokens have many possible forms of use. NFTs can replace the traditional ticketing system, the way we vote, coupons and more.

Forex brokers and crypto exchanges offer traders lower transaction fees based on monthly trading volumes. This applies to spot transactions and futures contracts, including perpetual futures contracts.

What if we could improve the commission structure, increase customer satisfaction and revenue through NFTs?

Integration of smart contracts

The standard form of NFT marketplaces is the buying and selling of non-fungible tokens. OpenSea, Nifty Gateway, and SuperRare all follow the basic buy and sell form.

However, NFT owners can also lend their NFTs, the “NFT rental”. Non-fungible tokens can be borrowed for a predetermined period of time before being returned to the owner.

It is more prevalent in companies specializing in real estate NFTs in the metaverse, lending their virtual properties to other users. My concept evolves around integrating NFT lending protocols into crypto and forex trading.

Before expanding on the benefits of these protocols, I would like to clarify how NFTs are borrowed via smart contracts. I focus on NFT lending without collateral.

Rental terms are embedded in a smart contract such as rental term. If the renter agrees to the rental term and rental price, a packaged version of the NFT is minted and sent to the borrower. The original NFT remains in the custody of the lender.

The wrapped NFT has an expiration date, which was determined prior to the rental of the NFT. Once the wrapped NFT expires, the wrapped NFT is returned to the contract, thereby burning the wrapped NFT.

These protocols already exist and are under development, known as the “IQ protocol”.

IQ protocol

IQ protocol yellow sheet

NFT Rental

Crypto exchanges and forex brokers can benefit from these protocols. I will take the trade terms as an example. The broker can offer its clients better spreads through dedicated NFTs. For example, it can range from as little as 15 minutes to 24 hours.

If the trader agrees to pay the fees to receive lower spreads, a wrapped NFT is issued and assigned to the trader’s dedicated account on the trading platform. When depositing the wrapped NFT, the trading platform recognizes the low-spread wrapped NFT and automatically reduces spreads as long as the wrapped NFT is present.

Once the shrouded NFT expires, it is returned to contact (which causes it to burn). Upon removal of wrapped NFT from the trading platform, the privilege of lower spreads automatically ends.

Tokens for NFT rental can be pegged to the US dollar (stablecoin) to avoid exposure to market volatility. The IQ protocol blockchain can be used to support the fully automated rental process.

Although the commissions of the broker or the exchange may be temporarily reduced, they can be compensated by a large number of traders interested in lower spreads for a certain period of time.

In addition to trading conditions, the financial company can award its traders other incentives. Faster withdrawals and subscriptions to various services offered by the broker can be offered through smart contracts.

This is a future concept for integrating smart contracts into trading platforms as we know them today. A dedicated platform must be developed to enable such functionality.

Welcome to the digital age.