Note: Toniq Earn is in open beta, the terms of this service are subject to change. Toniq Earn is not offered in all regions due to regulatory requirements.
Toniq Earn is now live! This marks the next major milestone in the Entrepot NFT economy. No longer are buying and selling the only means of commerce, you can now collateralize NFTs for increased liquidity or earn short interest on your ICP without a long term commitment.
How does Toniq Earn work?
Toniq Earn is powered by Interesting NFT Protocol — a decentralized non-custodial interest bearing protocol. Users can collateralize valuable NFTs for short term liquidity, whilst providing other users the ability to generate ICP rewards. Our unique approach is to tokenize the contract into a tradable NFT where the bearer receives the rewards upon contract resolution.
A user selects the NFT they wish to collateralize, the principal amount of ICP they want to receive, the interest they’re willing to pay, and the duration of time in which they have to settle. This offer is submitted for anyone to accept. If an offer is not accepted in 24 hours it will be canceled.
When an offer is accepted the ICP provider sends the principal amount to the protocol and it is distributed to the contract requester. In return the ICP provider is minted a contract NFT displaying terms of the agreement. The contract requester has until the end of the contract duration to complete payment, if payment is completed in time the NFT will be released to the original owner. If it is not, ownership of the NFT will be relinquished to the owner of the contract NFT.
Tokenization of the contract enables trading on the peer-to-peer marketplace. This allows users to sell the rights to their rewards. A contract will always hold true to the original terms set when the agreement was made.
Toniq Earn removes default risk by ensuring that if you supply ICP, you will either get ICP plus interest or the NFT collateral, and this is controlled via a decentralized protocol. However, there may be other risks in using this platform.
As with anything in crypto do not risk more than you are able to lose. The Interesting NFT canister will be blackholed by the end of this upcoming week which allows us to make any necessary last minute adjustments before the contract is immutable. In the future, new versions of the protocol may be released. If so, Toniq Earn will establish a migration timeline to migrate to the new release.
There are no protocol fees, allowing anyone to build on the protocol and charge their own fees. Toniq Earn fees are currently structured so that payment is split between both parties. 2.5% is paid by the contract requester upon contract mint, and 2.5% is paid by the ICP supplier on interest repayment. We will continue to monitor usage and may adjust fees in the future if necessary.
For the initial release we have decided to limit the number of collections available on Toniq Earn. Any collection in the top 12 by total trading volume or has a floor price over 10 ICP and at least 2K in total trading volume (at time of writing) may be collateralized. This is not fixed criteria and will change as we build out more navigational features and get feedback from creators and users.
Toniq 3D Airdrop!
To celebrate the release of Toniq Earn, we partnered with 3D artist/animator and ICP enthusiast Martian Drip founder Mark Garwe to create a stunning mini-collection of 200 NFTs. We will be airdropping a large portion of the supply to owners of Interesting NFT Contracts. The snapshot will take place towards the end of this upcoming week.
This won’t be your only chance to get a Toniq 3D NFT so stay tuned for updates!
Toniq Earn example scenario
1. Alice locks up 100 ICP (floor value) of NFTs into a specific protocol contract and then requests 30 ICP from the protocol with a 10% interest rate for 1 month. Alice now has to wait for protocol liquidity before the ICP can be withdrawn.
2. Bob sees some interesting protocol contracts, and decides to put 30 ICP into Alice’s protocol contract. Bob is minted a contract NFT, Bob knows so long as he holds this NNFT he will either get 33 ICP back in 1 month, or he will get the NFTS worth 100 ICP locked into the contract.
3. Alice can fulfill the contract at any time by putting 33 ICP back into the protocol. Or, Alice can elect to not pay back the contract, at which point Bob would receive all of the locked NFTs in the protocol contract.