We were inspired by the need for a better alternative to earning income from NFTs that doesn’t involve putting your valued NFTs at risk, nor the burden placed on borrwers to put up collateral to access benefits from NFTs.
What it does
The protocol delegates NFT utility to borrowers without the NFT leaving the owners wallet. This enables owners to earn income on their valued NFTs without risk of losing them. For renters, this means having the ability to access the benefits that come with owning an NFT, such as accessing token-gated access and experiences, token governance and more without having to put up the entire worth of an NFT as collateral.
How we built it
We built by implementing delegate.cash registry and a nft marketplce with a separete vault contract for the backend. We used Thirdweb to connect, deploy and manage our smart contracts and used Quicknode for RPC.
Challenges we ran into
The most challenging part of building out Cacao was the development of our smart contract functionality. Since we were building on top of a brand new primitive (delegate.cash), we had to put a lot of work into learning and understanding its mechanics in order to leverage it in a secure manner.
Accomplishments that we're proud of
We’re especially proud of the fact that this was a project that we started from scratch and were able to deliver a fully functioning protocol and prove that a marketplace can be built to support NFT utility lending and borrowing.
What we learned
We’ve learned that if you set an ambitious goal and work hard as a team, amazing things can happen. Our case was a clear example. We worked long hours throughout the entire week and are proud that we were able to ship a fully functioning protocol that unlocks new value accrual opportunities for the NFT space.
What's next for Cacao
We will continue development of the protocol, focusing on rolling out the next version of our protocol which will make it fully trustless and secure. We will also focus on acquiring our first users through partnerships with NFT projects that wish to provide more value for their holders.