On May 31, Penguin Karts, a battle racing game, officially announced their partnership on Twitter with IQ Protocol, the digital asset lending protocol. Users of Penguin Karts may now securely rent out their NFTs without losing control. The partnership is likely to have a big impact on the 3D game’s future NFT collection.
Because of developing ideas like Metaverse and GameFi, NFT adoption is increasing in the crypto ecosystem. However, no proper infrastructure exists to commercialise the practical side of non-fungible tokens. Furthermore, the majority of existing NFT pricing is based on rarity rather than utility.
What is the IQ Protocol?
IQ Protocol, a money market for lending digital assets and on-chain subscriptions, seems to have discovered a mechanism for users to spend their NFTs in blockchain games or metaverse projects. The protocol has included an expirable version of NFTs, which enables owners to rent their unique NFTs for a set period of time and fee. When the time is up, the rental agreement is over, and the owner gets back control of their digital assets.
This revolutionary move has the ability to modify the way NFTs are utilised in the market. Gamers and metaverse users will no longer have to pay a lot of money to get hold of rare items in games. Furthermore, users may advertise their unused NFTs for lending and earn passive income while maintaining ownership of these assets.
Purpose of the partnership
Through a partnership with IQ Protocol, Penguin Karts became one of the early users of this expirable NFT. This P2E has always aimed to provide the greatest gaming infrastructure for crypto revenue. Because of this, it has a number of features that let you earn money through games, betting, donating, collecting, and trading.
The Penguin Karts partnership is IQ Protocol’s second integration contract, which concluded this week. Previously, the lending protocol collaborated with the OneRare foodverse to provide NFT lending features on food NFTs and event passes. IQ Protocol said that cross-game rental will be added in the future because several projects have shown interest in NFT rentals.
